Maintaining consistent cash flow can be difficult when typical payments from customers can be 30 or more days from the time of the invoice. Here are 5 reasons why factoring might be right for your cell tower construction company.
As the demand for cell tower construction and maintenance increases, many telecom companies are growing faster (and want to grow faster) than their cash flow allows. According to an article on channelpartnersonline.com, the wireless sector will play a big role in the growth of telecommunications in 2016. Waiting for customer payment can make it difficult to invest in your company to allow it to grow.
It is common in the telecom industry to wait for payment from customers. Most telecom customers pay their invoices up to 30 days or more after receiving them. Whether your cell tower construction company is waiting for 30, 60 or more than 90 days to get paid, you rely on consistent cash flow to maintain and grow your business in order to hire new technicians, pay your employees, buy new equipment and more. Factoring your cell tower invoices can provide you with the cash flow you need in 24 hours or less.
Some cell tower construction companies prefer not to work with a bank, as it creates debt on your balance sheet. Factoring can be an excellent option for telecom companies as it is a flexible finance solution, short application process and provides immediate funding.
Maybe you have bad credit or no credit, and your bank won’t lend to you. When you factor your accounts receivables with Scale Funding, we look at the credit of your customers rather than your credit.
If you already have a line of credit from your bank, it can be difficult to get more as your business grows. One of the many benefits of factoring your receivables is that your line can grow as your business grows. The more contracts you win, the more cash we will provide you in advance.
Did one or more of the five scenarios above match your current situation? If so, it might be time to start factoring. Talk to one of our financial experts at Scale Funding by calling 800-707-4845.