Endorser: Factoring For Your Cash Flow

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  • Endorser aims to fill the void from banks by providing cash advances to live events on sponsorship, media rights, and licensing agreements.
  • Organizations can get up to a $10 million cash advance

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(Endorser is a proud partner of Front Office Sports)

Endorser, a newly launched financial services startup out of Miami, wants to make things a bit easier for live events in sports and entertainment to get back on their feet. 

In 2019, a survey by the Federal Reserve showed 66% of U.S. small business employers faced financial challenges. 43% of those polled stated their most common challenge was paying their operating expenses, and 46% stated they planned to take out additional debt. 

With so many companies already struggling in 2019, the current COVID-19 pandemic will only continue to compound the issue.

Live events have been one of the hardest hit industries with COVID-19 and their path to recovery is going to be long and hard. Complicating the matter is the fact that most banks do not provide live events with loans, as most live event applicants lack the necessary collateral to obtain one.

Endorser aims to fill the void from banks by providing cash advances to live events on sponsorship, media rights, and licensing agreements. 

Live events all over the world stand to lose unprecedented amounts of money with the disappearance of either fans and contests altogether. Some organizations will be able to weather the storm, but many smaller companies could be in real trouble. JPMorgan Chase Institute research shows that 50 percent of small businesses are operating with fewer than 15 cash buffer days.

“We see a massive gap in the market, with most live events not having the near-term cash flow in a post-COVID-19 environment to fund their operations until their event,” Endorser founder Paul Linden said in a statement. “Our goal is to provide debt-free solutions to help live events get back on their feet, and deliver the experiences and content that we all love and crave.”

Using a method of financing called “factoring”, live events companies can receive up front cash advances of up to $10 million or more. Endorser’s practice allows them to advance 80-85% of a contract’s value within 7-10 business days of approval. 

Endorser is the first factoring company to specifically target the sports and entertainment industry, and understands the sensitivity to the relationships of all parties.

“Our goal is to be a silent middle-man. We will invoice for your agreements on your behalf, and collect all of the funds, but the live event operator will still own the relationship and deliverables. We want to be transparent in all of our interactions with all parties,” Linden told FOS.

The way forward for the live event industry will not be easy, but collaboration will be a necessity. Endorser understands this thanks to an experienced staff with many years working in live events themselves.

“Our team contains over 100 years of combined experience putting on some of the world’s largest sports and entertainment events,” Linden said. “We have sat in the curator’s seat, and know the pain they are facing. We want to be part of the solution of allowing live events to come back as soon as possible.”

For more information or to apply, visit myendorser.com.

The information provided by Endorser, Inc. does not constitute legal, tax, financial or accounting advice, and should not be considered a substitute for obtaining competent personalized advice from a licensed professional. You should seek professional advice before making any decision that could affect the financial health of your business. Endorser, Inc. is not a lender and does not extend credit.