In case any of you think this is something new, its not. It&#x27;s called <i>Factoring</i> and its been around since the renaissance:<p><a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Factoring_(finance)" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Factoring_(finance)</a><p>Of course, when Shopify, Square, and PayPal put their startup-land spin on it and call it &quot;Capital&quot;, it sounds cool and new (the fact that they wont use the term says a lot).  IMO factoring should only be considered as a last resort of capital or when you have some large&#x2F;long-term enterprise contracts and need to ramp up production fast (eg Wal-Mart wants 100K of your widgets or the State of CA just ordered $4M worth of software from your 3-person shop). Even then, there are usually other sources of capital with better terms available.