I’m Dumb with Money

Hello,

I emailed some time ago asking what ‘invoice funding’ is but never got a reply. Can you please tell me what it is, as I am considering it but want to make sure first. I am kind of dumb when it comes to money.

Lina

Hi Lina,

It’s unclear whether you’re asking as a small business owner or as a potential lender, so I’ll answer both.If you’re in small business and you’re broke, you can get a lender to stump up the money to pay your bills -- and if you can’t pay your bills now, wait till they send you their bill! However, if you have to resort to high-risk financing like this I’d seriously think about getting the hell out of the business.

If you’re an investor thinking it could be a good way to earn a higher return, you’re acting all cray-cray and not in a good way. Don’t do it.

Scott