3 ms·
It's only ISA-like for businesses whose low-profit times are their low-revenue times, like seasonal businesses. But often businesses have a relatively steady st
by Liron 7y ago
It's only ISA-like for businesses whose low-profit times are their low-revenue times, like seasonal businesses. But often businesses have a relatively steady stream of revenue and fluctuating/unpredictable net profit/loss (especially if they're dealing with non-software margins), and this model isn't much of a downside-risk-reducer for them.
- edouard-harris 7y agoThat's absolutely correct, though financial technology of this type can also make it easier to start a seasonal business by effectively evening out its cashflows. This won't be hugely impactful for B2B SaaS companies, but it might be a game changer for e-scooters and vacation rental companies, for example - and thereby expand the market for seasonal companies.
- shostack 7y agoSo basically expect to see a lot of costume shops using this come October?