AR Financing

Not all debt solutions are created equal, and it’s important to understand the pros and cons of each in order to get the right fit for your business. So we created the definitive guide to funding mobile user acquisition to help developers make informed UA financing decisions.

The COVID-19 related increase in app downloads and engagement bodes well for app owners and the larger app economy. User acquisition (UA) costs are low and interest is up. But if you don’t have the financial wherewithal to ride the wave and compete for user attention, the challenge of acquiring (and keeping) users at scale may seem insurmountable. You need cash now — before your flood of interest and potential audience slows to a trickle — but funding is hard to come by during uncertain times. 

As founders get smarter about how they fund their growth, there is an increasing focus on non-dilutive sources of capital as alternatives to equity financing from VCs. As more data points become available, new options such as accounts receivable (AR) financing and revenue-based lending are coming on stream, offering founders and CFOs a wider range of options than ever before.

In collaboration with Silicon Valley Bank, we at Pollen VC put together an event – “Finance & Growth in the App Economy”. Here is a recording of the finance panel with experts from Silicon Valley Bank, Pollen VC and Gossamer Consulting Group to share how to efficiently fund your app's growth.

As the concept of Capital Efficiency becomes better understood in earlier stage companies, savvy founders and their finance teams are using accounts receivable (AR) financing as an important tool in their financing armory, helping reduce the impediment of payment delays of up to 60+ days from the app stores and ad networks.

In this post, we cover what is AR financing and the two simple questions you need to ask yourself to see if AR financing is right for you.