tag:blogger.com,1999:blog-20509300.post113686011616119119..comments2007-04-13T02:07:51.443+05:30Jessie Paulhttp://www.blogger.com/profile/18276990471182483808noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-20509300.post-1136874564120019772006-01-10T11:59:00.000+05:302006-01-10T11:59:00.000+05:30Its similar in concept to suppliers or customers taking a stake in the other party's business. I think HCL Technologies, for example, had announced that they would be open to picking up stakes in the companies that they do work for. Of course, that was in 2001 and the reason could have been to exchange sticky receivables for equity!<BR/><BR/>My company www.ceruleaninfotech.com has a somewhat similar policy when working with SMBs that specialize in software products. We don't take an equity position, but we sometimes stake out a percentage of the client's revenue stream.<BR/><BR/>In general, the concept of suppliers taking a punt on the customer is age old. Supplier's Credit is an early manifestation of this philosophy, isnt it?AniPaulhttp://www.ceruleaninfotech.comnoreply@blogger.com