Cashflow – a pair of perspectives

Jack over at Reiver Games just wrote an interesting post about cashflow issues when publishing a board game.  It’s an interesting post, like his blog, providing customers a behind-the-scenes view of games publishing.  One of the few blogs out there I regularly read.

It’s a nice counterpoint to my own revenue / product purchase cashflow post and an aspect of business that most people who don’t deal with it would not think about.  Certainly the entire merchant account / bank processing issue is entirely an online business problem.
Just to  add another piece of the puzzle – most merchant accounts hold a ‘reserve’ amount that they can use to settle refunds / chargebacks/etc.  It’s basically to safeguard themselves from merchants closing business and the merchan account provider not having the funds to pay Visa/Mastercard back.  That amount can range from 5-10% depending on your chargeback rates/etc.

It’s also why pre-orders are such a hassle for us.  Having to set aside board games that have not been paid for can seriously impact your cashflow.