CHANNEL INSIDER: Use Financing to Boost SalesCredit Options for Solution Providers
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.