Most companies don’t know this, but future sales are an asset you can finance for upfront capital. Under the Uniform Commercial Code (UCC), Article 9 – also known as UCC-9 – defines “Accounts” as:
- Present and future deposits
- From sales or future sales
- Whether earned or unearned
Examples of UCC-9 Assets
“Accounts Receivable” (A/R)
What is it? A future deposit from a sale you’ve already earned – hence “receivable.” You did the work. Now you’re waiting to get paid. UCC-9 doesn’t define “receivable” directly, but the definition of “Account” covers it: a future deposit, from an earned sale.
That pending customer payment is an asset. And assets can be financed.
That’s where products like factoring and lines of credit come in. Or “Asset based financing,” as we call it.
Another example:
Future Accounts: Financing Future Sales
What is it? A future deposit from an unearned sale – one that hasn’t happened yet. A customer might walk through your door in the next 1 to 12 months. That possibility is still an asset, and assets can be financed. That’s where products like “sales based financing” come into play.
Crystallized vs. Uncrystallized Assets
Our industry debates this constantly: is the asset “crystallized,” or “uncrystallized”? Receivables are crystallized. The unearned kind is not. In the eyes of the law, though, it doesn’t matter – both qualify as financeable assets.
The real difference comes down to risk. Some funders will only finance what’s already earned. Others will finance what hasn’t happened yet, because they’re willing to take on more risk to do it.
Which Financing Option Fits Your Future Sales?
The right structure depends on where your revenue actually comes from. If your business runs on receivables you’ve already earned, factoring or a line of credit likely fits best. If your revenue depends on customer activity that hasn’t happened yet – renewals, subscriptions, or seasonal sales – a structure built around future sales gives you access to that capital today, instead of waiting for it to happen.
UCC Article 9 is the law that makes all of this possible. It governs secured transactions across the U.S. and defines exactly what counts as a financeable asset. You can read the full text of UCC Article 9 through Cornell Law School’s Legal Information Institute, if you want the legal detail behind it.
Whatever your revenue looks like today, or where it’s headed next, we can help you turn it into capital. Reach out to Capital Desk to see which structure – present or future sales – fits your business best.
