Assignment of Proceeds Financing

This kind of financing bases the deal's financing on the customer's credit worthiness and not the solution provider's. If you want to do a big deal but the distributor wants to know where you are going to come up with the money to pay it, this is a way to do it. The solution provider can ask for credit by assigning proceeds directly to the distributor, and then the reseller will issue a letter of instruction to the end user that says whatever the reseller is entitled to receive from the customer should be paid directly to the distributor.