Lucky Hand Capital, a specialty finance company serving the agency and creator economy, announced Aug. 21 the U.S. launch of an accounts receivable financing solution for independent marketing, advertising and creator agencies.
The product lets eligible agencies convert approved receivables from established brand clients into working capital, giving them cash to cover campaign costs and take on new business without waiting out extended client payment cycles.
Marketing agencies typically pay creators, freelancers, production companies and other campaign partners before their own clients pay them. When brands extend payment terms to 60, 90 or 120 days, agencies can end up short on cash even after completing work.
According to the U.S. Census Bureau, American advertising agencies generated $65.3 billion in revenue in 2023. Sixty to 90 days of that annual figure equates to roughly $10.7 billion to $16.1 billion tied up in receivables industrywide, Lucky Hand said.
“Independent agencies should not have to choose between paying their partners on time and accepting their next campaign,” said Madelaine D’Angelo, CEO of Lucky Hand Capital. “The work may be completed and the invoice approved, but the agency can still wait months to receive payment. Lucky Hand helps turn that receivable into working capital so agencies can continue operating and growing.”
Financing decisions are based on the underlying campaign receivable and the credit quality of the brand payor, rather than general business financials. The company said its process relies on approved receivables, verified invoices, campaign documentation and payment obligations.
The U.S. launch follows Lucky Hand’s July acquisition of Vane Capital, formerly known as BillFront, a specialty finance company founded in 2015 that served digital media, advertising and entertainment businesses. With Vane’s agency-finance technology and operating capabilities now integrated, the combined platforms have facilitated more than $700 million in cumulative financing volume. Terms of the acquisition were not disclosed.
Agencies can use the capital to pay creators, talent and production partners on time; fund production and campaign execution; manage timing gaps between client and supplier payments; take on additional campaigns without waiting for existing invoices to settle; and support hiring and other growth-related costs.
Lucky Hand’s focus includes independent creative, digital, influencer, social media, public relations, experiential, production and talent management agencies with recurring campaign revenue and approved receivables from established corporate payors.
Lucky Hand Capital provides accounts receivable financing to marketing and creator agencies, converting approved brand receivables into cash through a digital application process. More information is available at luckyhand.capital.
