The more you sell, the less liquidity you can have. Yes you can go broke selling more!

Simply put, the liquidity trap is unavoidable for most technology partners. Coming from the VAR industry, we understand this better than most! The reason for the inevitable cash squeeze is that typically lenders advance 75-80% of eligible accounts receivable and inventory. If the margins on sales are 8-12% then you are short 10-12% on the sale and will be unable to pay your vendors or meet your obligations without added capital. As your revenue grows, so does the shortfall.

GTF’s unique financing model enables VARs to stay out of the liquidity trap because we fund 100% (not 75-80%) of the sales cycle (PO to Collection), filling the “gap” without the need for added capital. We also ensure that your vendors are paid timely, adding to your credibility within the technology marketplace. This will translate into more leads and better pricing.

We first invented GTF to beat the “trap” for ourselves and now offer the solution broadly.

An excellent source for more information on the Liquidity Trap, and other issues common to all Technology Partners is a book titled Mastering a Culture of Accountability, by Chris Winter & Larry Kesslin, which GTF partially collaborated on.