thread: 2012-03-06 : Chad Underkoffler: Freelancing for RPGs
On 2012-03-12, anon. wrote:
Exactly, David. The distributors finance retail sales with extended payment terms. It's effectively a short-term loan in the amount of any invoices we receive.
A well-run store will have enough money in the bank to cover the total of any open invoices they have, but that leeway allows for handling unexpected emergencies, special situations, and August of every year when every publisher in the world has come to believe it's the best time to release everything into the market, all at once, at the same time. Late September A/P is never fun, though late August/early September sales numbers sometimes are.