Jill has bootstrapped her business that helps large bakeries increase the efficiency of their deliveries. After a recent spotlight in a trade magazine explaining how her customers can quickly lower their costs, her sales have doubled in three months. Since her system is a combination of proprietary software and hardware, this dramatic increase in installs has created a severe and unexpected cash flow challenge. Which of the following sources would be her best choice of immediate funds?

Question

Quizplus · Accepted Answer

Advance payments from customers would provide immediate funds without the need to give up equity or incur debt. As her sales have doubled, she could negotiate with her customers to pay a portion of the subscription fee upfront, which would provide her with the cash flow required to continue her operations.

Jill Has Bootstrapped Her Business That Helps Large Bakeries Increase