How Recurring Shop Revenue Pays Suppliers Instantly | Dan Pascone with Andi Pereira | Episode #28

Posted on August 4, 2025 by Dan Pascone

Episode TL;DR

In this episode: Dan talks with Andi, founder and CEO of Capital, a fintech that helps small retailers fix their biggest pain point: cash flow. Capital connects directly to merchants’ POS/credit card systems and turns future receivables into an instant payment method to pay suppliers. They dig into how this model works (especially in Brazil’s 30-day card settlement environment), why traditional options like merchant cash advances and factoring are so painful, and how smarter, niche-specific finance can unlock growth across entire supply chains.

Who this is for: Founders and leaders of small and mid-sized businesses (especially retail, pharmacies, cosmetics, health), anyone wrestling with lumpy cash flow and long payment terms, and people curious about how buy-now-pay-later and embedded finance can transform B2B supply chains.

Key Takeaways

Cash flow is the #1 pain point for most small businesses. Many merchants must pay suppliers quickly but don’t receive customer payments (especially on credit cards) for 30+ days, which creates chronic working-capital stress.
Capital turns receivables into a payment method. Their platform connects to the merchant’s POS and lets them use future card receivables (including buy-now-pay-later installments) to pay suppliers instantly, without taking on traditional debt or merchant cash advances.
The initial focus is health and cosmetics. Pharmacies, drugstores, and cosmetics retailers are especially squeezed: they pay suppliers on short terms and get paid later via card transactions, so they benefit most from receivables-based payments.
Brazil is a perfect “laboratory” for this model. In Brazil, card settlements to merchants often take ~30 days (even for one-time payments), which makes the cash-flow friction far worse than in the US. That pain creates big opportunity for fintech innovation.
Suppliers win too. Suppliers get faster, safer payments with less delinquency and less manual invoicing and collections. Capital charges suppliers a transaction fee, but the tradeoff is better liquidity and lower risk.
This can scale across entire supply chains. The same receivable can effectively “pay” the retailer’s distributor, then the manufacturer, and so on – reducing friction and financing gaps at every layer of the chain.
BNPL is just the visible tip of a bigger shift. As buy-now-pay-later changes consumer behavior, cash flows and financing needs change for merchants and suppliers too, opening the door to new tools that better match how money really moves.
One-size-fits-all finance doesn’t work for SMEs. Small businesses behave more like individuals than large corporates; niche-specific, deeply tailored financial products are needed instead of generic “SMB loans.”
New tech (like tokenized receivables) could be the next frontier. Andi imagines a future where receivables become tokens on a chain, making liquidity and financing even faster, cheaper, and more programmable.

Key Moments

00:02 – Dan opens the show and frames the mission of helping business leaders make smarter money decisions.
00:28 – Introducing episode 28 and guest Andi, founder and CEO of Capital, a fintech rethinking lending and receivables.
01:30 – Andi explains Capital’s model: connecting to POS systems, enabling installments for consumers, and using receivables to pay suppliers.
03:12 – Why Capital focuses on health and cosmetics (pharmacies, drugstores, cosmetics retailers) and how their cash-flow profile is uniquely painful.
04:14 – Walkthrough of a typical transaction: merchant uses future card receivables, via Capital, to pay a supplier with “almost one-click.”
05:38 – The Brazil angle: card payments can take 30 days to settle to merchants, unlike the 2–3 day settlement most US businesses see.
07:03 – Other markets with similar issues and why Capital started with card receivables but could extend to invoices and other receivables.
08:28 – Comparing Capital with merchant cash advances and factoring – and why the traditional solutions are so expensive and cumbersome.
10:42 – How Capital makes money by charging suppliers a transaction fee in exchange for faster, safer, more efficient payments.
12:16 – Dan reframes the value proposition from the supplier’s and merchant’s point of view and why this feels so powerful as a small business owner.
13:34 – Andi shares Capital’s origin story, early traction (5,000+ merchants served, $9M credit facility), and expansion goals.
15:14 – Discussion of buy-now-pay-later: how long-term installment culture has existed in Brazil for decades and how that shapes innovation.
18:22 – Andi’s view on the future: hyper-tailored financial products for each SME niche instead of generic “SMB finance.”
19:46 – His vision of transforming receivables into a mainstream payment method and a real alternative to merchant cash advances and working-capital loans.
21:56 – Dan, as a business owner, affirms how real and painful the problem is, even when the ROI on spending is clear.
21:56 – Andi talks about blockchain, tokenized receivables, and a future of cheaper products, higher SME margins, and broader prosperity.
23:16 – Lightning round: coffee, coffee break as lifetime “meal,” smartwatch, running, Bukowski quote, favorite book, routines, Guinness World Record.
31:31 – Andi’s advice to his younger self: be ambitious, be bold, and be relentless – and why mistakes are a critical part of the journey.
31:46 – Where to find Andi and learn more about Capital; Dan closes with his usual reminder to prioritize your version of a rich life.

Episode Summary

In Episode 28 of the Making Sense of Your Money podcast, Dan sits down with Andi, founder and CEO of Capital, to explore one of the hardest problems in small business finance: cash flow. Capital’s solution is deceptively simple: connect to the merchant’s point-of-sale system and use the future receivables from card transactions and buy-now-pay-later installments as a payment method to pay suppliers.

Andi explains why they chose Brazil as their launch market: there, merchants often wait about 30 days to receive credit card settlements, even for one-time purchases. That lag, combined with the need to pay suppliers much sooner, creates a massive working-capital crunch. Traditional fixes like merchant cash advances and factoring are expensive and complex. Capital flips the script by letting merchants “spend” their future receivables to pay distributors and manufacturers instantly, while suppliers pay a transaction fee in exchange for faster, safer payments.

The conversation dives into why Capital targets pharmacies, drugstores, and cosmetics retailers first, how buy-now-pay-later is reshaping consumer behavior and cash flows, and why Andi believes the future of SME finance is niche-specific and highly tailored. He also shares a longer-term vision involving tokenized receivables and blockchain, imagining a world where liquidity is instant, costs are lower, and entire supply chains move more efficiently.

In the lightning round, Andi reveals his obsession with health data on his smartwatch, a favorite Bukowski quote (“Find what you love and let it kill you”), his love for Andrew Chen’s The Cold Start Problem, and a wild Guinness World Record he helped set by organizing the world’s largest class in a soccer stadium. He closes with advice to his younger self – and to other entrepreneurs: be ambitious, be bold, and be relentlessly persistent.

Full Episode Transcript

Transcript edited lightly for clarity.

Narrator: Brought to you by Tailored Wealth, helping business leaders live their version of a rich life.

Dan: Welcome to another edition of the Making Sense of Your Money podcast, where we cut through the financial noise and help business leaders to make smart, confident money decisions.

Dan: Welcome to another edition of the Making Sense of Your Money podcast. This is episode number 28 and, as always, I’m your host, Dan. I’m the founder and CEO of Tailored Wealth, and each episode features a trusted voice in the financial world – someone who works directly with high-level professionals to simplify the complex and turn strategy into action.

Dan: Today, I’m really excited to bring on a special guest. We’ve got with us Andi. Andi is the founder and CEO of Capital, and he’s got some really unique expertise. His firm is doing some pretty innovative stuff in the lending and credit card receivable space.

Dan: So Andi, thanks so much for being on the Making Sense of Your Money podcast. Pumped to have you today, man.

Andi: Dan, thank you so much. Glad to be here today. Thank you.

Dan: Very cool, very cool. We’ve got a lot to cover. I know our audience is going to want to hear all about what you do, your expertise, your business, etc.

Dan: Why don’t you start off by giving us a quick, high-level, 90-second overview of who you are, what your business does, and maybe a little bit about how you got into it.

Andi: Thank you, Dan. So basically, I’m Andi, founder and CEO of Capital. Capital is a fintech that solves one of the biggest pain points for all small businesses, which is cash flow.

Andi: We solve the problem of paying suppliers first and only collecting money from customers later. And we do it in a very innovative way. We developed software that’s connected to the POS – the point-of-sale machine, the credit card machine – of small merchants. We allow those merchants to offer “buy now, pay later” to their consumers.

Andi: So consumers can split their payments in one, two, three, up to 12 installments. And the merchants don’t need any working capital. They can use those installments – those future receivables – to buy more inventory and pay suppliers in a very fast and efficient way.

Andi: We’ve now built a platform that already serves more than 5,000 pharmacies and other retailers in Brazil, and we’re tackling one of the biggest problems small businesses have: access to finance.

Dan: I can certainly relate to that, especially in my early days of running Tailored Wealth. I know how challenging it can be to get financing and manage the books.

Dan: Tell us – let’s talk a little bit about your clients. What are the right businesses for Capital? What types of businesses are you typically serving?

Andi: Thank you for the question. Basically, small and mid-sized enterprises are such a broad space to work with, right? I like to say SMEs are like mammals – you can go from whales to bats, and eventually find a platypus in the middle that nobody quite knows what that animal is.

Andi: It’s impossible to work with SME finance in a broad, generic way. You really have to understand your “mammal”: what it eats, how it survives, what its life cycle is.

Andi: We decided to specialize in health and cosmetics. We basically serve pharmacies, drugstores, cosmetics retailers, and businesses in this space that have a particular finance problem: they have to pay suppliers on shorter terms and they sell to final consumers via credit cards with longer receivable periods.

Dan: Got it. Alright, so let’s walk through a bit of the journey from the businesses you’re working with – your actual client – and then their end consumer.

Dan: Talk to us a little bit about what a transaction on Capital might look like, what that ultimately does for the businesses you serve, and how that trickles down to the consumer.

Andi: That’s a great question. Basically, we offer a platform that a merchant can easily register on. We’ve signed several suppliers in this segment – distributors of cosmetics, distributors of pharma, suppliers and manufacturers in this industry who sell inventory and supplies to those merchants.

Andi: When a merchant needs to buy and resupply inventory, they can issue a payment through Capital. By issuing a payment with Capital, they’re essentially using their installments – their future receivables – to pay their suppliers.

Andi: So the transaction is embedded in the buying process between suppliers and merchants. We offer them a very simple solution – it’s almost a one-click-to-pay experience. Instead of paying via an invoice, merchants use their future receivables from credit card sales to pay.

Dan: So the transaction that you’re going through with the business is backed by, effectively, the future sales – the future revenue that they have coming in. Does that make sense?

Andi: Yes. It’s important to understand one key trend that’s a bit different from the US market. Our primary market is Brazil, but we’ll expand globally. We started in Brazil because when you go to a merchant in the US and use your credit card, the merchant receives that money in two or three days.

Andi: When you go to a merchant in Brazil and pay with a credit card, the settlement takes 30 days – even if it’s a one-time payment. So the pain is much higher in Brazil. We decided to start there.

Andi: And because of players like Nubank and others, Brazil is kind of a paradise for fintechs. You can build businesses here that later expand globally. That’s the path we’re trying to follow.

Dan: Is Brazil unique in that longer time window for businesses to get paid? Are they unique globally from that perspective? I’m obviously more familiar with the American markets. Tell us a bit about what makes Brazil unique there.

Andi: We do have similar markets where there’s a delay from the time the merchant receives a payment to when the payment is settled. For example, in Argentina it can be up to 18 days. Other countries in Latin America also have this.

Andi: Developed economies have usually shortened this settlement time. But actually, we started with credit card receivables because it’s the most obvious. We can work with any kind of receivable. We basically transform receivables into a payment method.

Andi: So we started working with card receivables, but we could use invoices or other forms in the future. We give liquidity to receivables and allow merchants, without needing to go to a merchant cash advance or factoring or any typical working-capital finance, to use the receivable itself as the method of payment.

Andi: And we offer this across the supply chain. The payment that the consumer makes to the merchant can be used to pay the distributor, which can be used to pay the manufacturer, and so on. We create this efficiency in the whole supply chain.

Andi: We really think that’s the future of finance in this space.

Dan: Yeah, I can see where there are major efficiencies in the supply chain.

Dan: I want you to educate our audience a little on the alternative options a business may have. You mentioned merchant cash advances – which I know a few things about. No knock on that business, but usually if a business needs to go through a merchant cash advance, they’re paying astronomical interest rates.

Dan: The benefit is they get capital fast, but the downside is it can really hurt the business long term. Tell us how you serve as a better alternative to that solution and maybe dive into some of the economics from a business owner’s perspective.

Andi: If you allow me, let me give your audience some big-picture numbers to understand the size of this problem. When we see data from the World Bank and IFC, the estimated finance gap for SMEs is over $5 trillion. That’s almost 20% of the world’s GDP.

Andi: SMEs are the vast majority of companies worldwide and are responsible for most job creation. However, they’re the ones who suffer most in accessing finance. That happens for a number of reasons.

Andi: What they mostly need finance for is working capital. They need to solve the cash-flow problem. So far, the only option has often been to pay astronomical interest on debt. They can do factoring of their receivables, but to do that, both the buyer and the seller often need strong credit profiles. Or they can try to get a working-capital loan, which involves heavy bureaucracy with big banks.

Andi: What we do is provide a very neat type of finance at essentially zero risk to the merchant. The merchant can extend payment terms to their consumers; the consumers can pay in three, four, six installments with no interest. If the merchant has, say, $1,000 to receive over six months, they can use that $1,000 to buy from suppliers.

Andi: And you might ask, “Where’s the magic? How do you make that happen?” We charge fees based on the suppliers. We charge suppliers a transaction fee for every transaction we process with them.

Andi: Why do suppliers accept us? Because we are, most of the time, more efficient than regular invoices. If you’re a supplier and you issue a normal invoice, you might wait 30, 60, sometimes 90 days to get paid, and you face delinquency risk. You have to manage collections. We basically solve those problems for suppliers and allow them to sell more easily and more securely to these merchants.

Dan: So from a supplier’s perspective, they’re getting a much higher level of guarantee or security that they’re going to get paid. And I imagine there’s a higher level of efficiency because they don’t have to go through the cumbersome invoicing process.

Dan: From a merchant’s perspective – the small business – they’re now effectively able to use future revenue to buy supplies, which makes their whole buying and customer journey a lot more efficient. A lot of times small businesses have future sales, revenue coming in – I own a small business, so I can relate – but you might want to be investing in things for the future that will produce dollars that aren’t in your bank account yet.

Dan: Did I summarize that pretty well, Andi?

Andi: Excellent. Exactly, Dan. I think you hit the point.

Andi: When we look at these supply chains, there’s friction everywhere. The merchant at the end of the supply chain suffers with cash-flow management and has to work hard to sync payment terms and receivable terms.

Andi: On the other side, suppliers also suffer with delinquency and long payment periods. And those suppliers also have suppliers. So you have friction in the entire chain.

Andi: We make it more efficient by creating a financial structure with technology and intelligence around this process.

Dan: Very cool. Very cool.

Dan: Tell us a little about – you mentioned Brazil being the initial market you launched in. How long has the organization been live, and where do you see it going next? Talk about your expansion – you mentioned potentially a more global footprint in the future.

Andi: That will be fun. We launched Capital in 2023 after my master’s program in the US. I had the opportunity to study SME finance for over a year, and Capital was the result of my studies and understanding about regulation and technological disruption.

Andi: When you put regulation, technology, and unmet needs together, you can solve very big problems by simply making things easier in ways that are now possible.

Andi: From 2023 to now, we’re in mid-2025. We serve about 5,000 merchants, we raised a $9 million credit facility that we’re operating, and we’re targeting a bigger seed round to scale our business in Brazil and then export the intelligence we’ve built to other geographies and supply chains.

Dan: Very interesting, very interesting.

Dan: Yeah, I can imagine the ability to scale to other business verticals and industries because the problem you’re solving isn’t exclusive to one vertical. That makes a lot of sense.

Dan: Let’s talk a little bit about the industry. Buy-now-pay-later has become popular in the United States for consumers. The idea is: I’m going to purchase a bigger-ticket item – an expensive TV, golf clubs, whatever – and you see these buy-now-pay-later options that allow you to finance that purchase. There are a few providers out there I’m aware of.

Dan: Would you relate what you do to buy-now-pay-later, but more for a business? And what else is out there in your industry that helps solve the same problem Capital is solving?

Andi: It’s funny because buy-now-pay-later, while pretty recent in the US, has been around since the ’90s in Brazil. Because of high inflation in the past, consumers were educated to pay in installments for everything – from a refrigerator to a t-shirt.

Andi: That’s one reason Brazil is such a huge niche for fintechs. We have Pix, Nubank, and other innovations. National digital currencies are coming, and so on.

Andi: What I see is that while Americans are trying to get used to these new payment methods, they open new opportunities. Merchants who offer these financing options to their consumers can obviously sell more.

Andi: For the consumer, it’s easier to buy in installments and commit less each month than to pay everything upfront – even if you might get a better deal paying cash.

Andi: But we also have to understand that this is just the tip of the iceberg. With BNPL comes a change in consumer behavior, a change in merchant needs, a change in cash-flow management, and a new way that people and businesses relate to cash.

Andi: You’re a super expert in the field, so you’ve probably seen how new tools open up new markets. What I truly believe we’ll see in supply chains is the following.

Andi: It’s very well known that SMEs are the backbone of most economies. Governments, the World Bank, IFC – everyone is trying to foster a better environment for them. You can see problems and opportunities everywhere.

Andi: What I see as a big trend is very tailored solutions, not only for small businesses in general, but for specific niches. People will understand the specific financial needs of a given niche and build tailor-made financial services for them.

Andi: Capital, in this sense, wants to solve the supply-chain payment problem. We want to turn receivables into a payment method and create a new type of finance that’s a real alternative to merchant cash advances, factoring, and even working-capital loans.

Andi: The vision is: pay suppliers with receivables and make the supply chain faster and more efficient.

Andi: I’d actually love to hear your thoughts as an expert in this space.

Dan: Yeah. I can tell you, as a small business owner myself, serving a number of small business owners and having a prior corporate career in lending and finance, this really hits home.

Dan: For those listening who are not business owners, the problem you’re solving is real. The idea of a small business being able to access whatever they need to produce revenue – in your case supplies, often hard goods – is critical. In software or service-based businesses, there are also “supplies”; they just may not be physical goods.

Dan: A lot of times, especially for smaller and mid-size organizations, paying for those services is a challenge, even when you know those services or supplies are going to produce a tangible return on investment.

Dan: So I think it’s a noble endeavor that you and your team are embarking on, and I’m certainly looking forward to following your journey.

Andi: Thank you, Dan. And I think you hit the spot: it’s impossible to think of a one-size-fits-all solution. You really have to understand each business, their dynamics, and tailor financial services to them. I see a lot of opportunity in this space.

Andi: New technologies – for example, blockchain and digital currencies – will definitely disrupt several business models. Imagine if each receivable could be a token on a blockchain. Today, to get liquidity, you issue an invoice, then look for financing or factoring.

Andi: In the future, everything could be on-chain or on platforms like Capital that bring liquidity and efficiency, reduce costs for businesses, and provide faster, more efficient transactions for everyone.

Andi: That would result in cheaper products for customers, more margin for SMEs, and more prosperity across the board.

Andi: I’m really happy and excited not only to see this future coming, but also to help build it.

Dan: I love it. Great story, great backdrop. Thank you for sharing all that.

Dan: Andi, we’re going to shift gears a little bit. We’re now going to put you through the lightning round – the well-known lightning round. We never tell our guests about this section.

Dan: All I want you to do is give me the first thought that comes to your mind. Could be a one-word answer, could be a long, drawn-out thought, and anywhere in between. Sound good?

Andi: Let’s go.

Dan: Alright, let’s do it. Coffee or tea?

Andi: Coffee.

Dan: One meal for the rest of your life. What is it?

Andi: Coffee break, for sure.

Dan: Okay, alright. Sounds good. Good for you.

Dan: I was telling Andi earlier, he’s in São Paulo, Brazil, and I had one of the best meals of my life in São Paulo. So you’re around some good eats. And I know you go back and forth between São Paulo and New York, so you get access to a lot of good food, which is cool.

Dan: Alright, this will be a good one for you, given how much technology is involved in your world and your business. What’s one tool or piece of technology – hardware or software – other than your computer or your phone that you can’t live without?

Andi: I would say my smartwatch.

Dan: Smartwatch. Okay, sounds good. What do you do with the smartwatch? Track your steps, message on it, what do you use it for?

Andi: I’m super fanatic about health. I’m always tracking everything I can and trying to improve. I’m also into sports – I like to run and train. So I’m always pushing my limits and seeing if I can hit my goals.

Dan: Cool. We’ll have to do a run in Central Park sometime. I’m with you on that. Very cool.

Dan: Do you have a favorite quote or phrase about money or success?

Andi: That’s a good one. There’s one I use a lot and I actually have it tattooed on me.

Dan: Okay, alright – let’s hear it.

Andi: It’s a Bukowski quote: “Find what you love and let it kill you.”

Andi: It’s powerful. Basically it says that once you find the things that really touch your heart, that connect to your purpose, you should do them to the end of your life. As Bukowski says, let them drain you to eventual nothingness – because everything you do, from breathing air to eating a salad, will eventually lead you to your death.

Andi: So it’s better to be “killed” by the things you love. Do what you love and let it kill you.

Dan: Very cool, very cool. That’s deep, man. I like that one.

Dan: Do you have a favorite book on business, finance, or success?

Andi: I really love The Cold Start Problem from Andrew Chen. He was the growth guy at Uber. He gives all the tips on building two-sided marketplaces and kicking off businesses like Capital and Uber – where you need drivers and passengers, or suppliers and buyers.

Andi: He lays out the knowledge and methodology to scale businesses in that context. I love that book.

Dan: Very cool. Love that one.

Dan: Do you have a personal hack you can share with the audience?

Andi: That’s a good one as well. I love routines.

Dan: Alright, tell us about your routines.

Andi: I wake up early. First thing I do is go to the gym. Then I get to work early. After that, I like to come back home, have family time, read my book.

Andi: On weekends, I make time for family and travel a bit – another passion of mine – doing sports and traveling.

Andi: I really think routine is the best hack you can have in life. Life is not a short run; life is a marathon. It’s not about one big hack, it’s about consistently doing the right things day after day. That’s where the big achievements come from.

Dan: Couldn’t agree more on that, and we share a lot of the same routines. Good to hear that.

Dan: What’s one bucket list item that you’ve already accomplished?

Andi: This is a fun one I want to share. I actually broke a Guinness World Record.

Dan: Oh, let’s hear about this! This is a good one. I don’t think we’ve had any Guinness World Record holders on the podcast yet.

Andi: I’ve always been connected with businesses that have a social impact – businesses that not only make shareholders wealthier, but also impact society.

Andi: Before Capital, I ran a company called Universia, owned by a big bank. They basically offer scholarships, courses, and training for students to access university and the job market. I was running that company in 2018, and we were trying to think of something really impactful we could do.

Andi: We came up with the crazy idea: why don’t we break a big Guinness World Record and organize the largest class ever held in the world?

Andi: So we did. We put over 5,000 students in a soccer stadium in Brazil and brought in four tons of equipment. We built a huge stage that looked like a music festival – think Coachella or Rock in Rio – but instead of rock bands, we brought professors and people giving classes on biology, math, technology, and more.

Andi: That was a huge milestone not only in the company’s history, but in my life as well.

Dan: Very cool. That’s a great story. I’m glad you shared that. Congratulations.

Dan: Alright, last one. If you could give a piece of advice to your younger self, what would it be?

Andi: I really think I’m made not only by the things I did right, but also the things I did wrong. My mistakes are a big part of who I am now. I couldn’t live without them.

Andi: Although I regret some of them and still suffer from others, the tip of advice I’d give my younger self – and that my older self would give me today – is this: be ambitious, be bold, and be relentless.

Andi: Those three together – if you really dream big, if you’re ambitious about doing something remarkable – you’ll face problems and challenges throughout your life. But you also suffer if you don’t have those challenges. If your dream is big enough, every problem seems smaller because you really want to overcome it.

Andi: Ambition is key to help you face problems and keep moving toward your goals. The second is being bold – you have to be yourself; everyone else is already taken. Find your true self and be different.

Andi: And it’s not about never making mistakes. It’s about falling and standing up, falling and standing up again. That’s where relentlessness is key.

Andi: If you have those three – ambition, boldness, and relentlessness – it doesn’t matter the challenge or situation. You’ll be in a good position.

Dan: Could not agree more. That’s a powerful way to end it.

Dan: Lastly, Andi, if our listeners want to connect with you, collaborate, learn more about Capital, where can they follow you and get more information?

Andi: Thank you for the opportunity. I couldn’t finish without saying thank you so much. I loved our talk.

Andi: As I told you, I listened to a lot of your episodes before. I think this is a great opportunity for people interested in finance to stay connected with the latest trends.

Andi: I’m Andi, founder and CEO of Capital. You can reach me on LinkedIn – just look for my profile – or find me through Capital’s channels.

Dan: Very cool, very cool. Andi, this has been great. Thanks so much for the conversation and for sharing your time and insights with us today.

Dan: That’s it for the episode. As always, you can find our podcast along with our newsletter and YouTube channel, all free, at makingsenseofyourmoney.com. And lastly, don’t forget to prioritize your version of a rich life. Cheers.

Resources & Citations

FAQs

Is Capital a lender or a payment processor?

It’s a bit of both. Capital is a fintech platform that connects to the merchant’s POS/credit card system and turns future receivables into a payment method to pay suppliers. Instead of taking a traditional loan or merchant cash advance, merchants “spend” a portion of their future card sales through Capital to settle invoices now.

Why focus on pharmacies, drugstores, and cosmetics retailers first?

These verticals have especially tough cash-flow dynamics: they pay suppliers relatively quickly, but a large share of their sales are on credit cards with delayed settlement. That makes them ideal early adopters for receivables-based payments that relieve working-capital pressure.

How does this differ from a merchant cash advance (MCA)?

MCAs typically involve very high effective interest rates, rigid repayment structures, and a heavy burden on the merchant’s cash flow. Capital’s model is built around using receivables as a payment method inside the supply chain and charging suppliers a transaction fee – which can be cheaper and less risky than an MCA for many businesses.

Can this model work outside Brazil?

Yes. Brazil’s 30-day card settlement makes the pain more acute, so it’s a powerful initial market. But any market where SMEs struggle to align when they pay suppliers with when they get paid – especially where card and BNPL usage is high – could benefit from receivables-based payments and embedded supply-chain finance.

Is this just for physical inventory businesses?

It’s particularly well-suited to inventory-heavy businesses today (pharmacies, cosmetics, retail, etc.). Over time, similar receivables-driven structures could be adapted for service and software businesses as well, using invoices and other predictable receivables instead of card sales.

Disclaimer

The information in this episode and on this page is for educational and informational purposes only and is not intended as tax, legal, or individualized investment or lending advice. Any strategies discussed may not be appropriate for your specific situation and are subject to eligibility, current laws, and regulatory requirements, which can change over time. Before making financial, tax, insurance, or borrowing decisions, consult with a qualified professional who understands your personal and business circumstances.

Next Steps

If this episode resonated with the challenges in your own business, here are two practical next steps:

1. Explore your financing “stack.” Make a simple map of how cash flows through your company today: when you pay suppliers, when you get paid, and what tools (loans, lines, cards, MCAs) you’re using. That will help you see where newer solutions like receivables-based finance might fit.
2. Get a second opinion on your capital strategy. If most of your net worth is tied up in your business and you want a more resilient, tax-smart plan around both your company and your personal wealth, consider a conversation with a planner who works specifically with business owners and executives.