The risk of distributing risk

Lambda School is a startup programming school that uses income sharing agreements to tie tuition payments to students’ income (no income = no tuition). That leaves ‘accounts receivable’ stretching out for years, so they sell it off to outside investors for cash today. This has caused some to throw shade at them since the practice came to light. Ranjan Roy offers an interesting and nuanced analysis in his newsletter Margins| learn more

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