If your cell tower construction company is facing slow-paying customers or cash flow challenges, factoring finance offers an excellent solution to your working capital problems.
Factoring Finance is when a business sells its accounts receivable (or invoices) to generate cash flow. Instead of waiting weeks for customer payments, cell tower construction companies can leverage customer invoices to receive payment in as little as 48 hours.
Is Factoring Finance for Telecom Companies Common?
Yes. According to the Commercial Finance Association, receivables factoring transactions in the United States exceed $60 Billion per year.
Following tighter lending and small business loan restrictions, growing companies choose to bypass traditional lending and use factoring finance instead. Factoring finance is extremely flexible as compared to a bank loan, giving your cell tower construction company access to working capital that’s tied up in your accounts receivable.
Do Telecom Companies Use Factoring Finance?
Absolutely! Any industry, including the telecom industry, that generates invoices can and will use invoice factoring. Generally speaking, if your cell tower construction company pays for labor or materials before receiving customer payment, you can free up working capital by utilizing factoring.
Telecom Factoring Finance Benefits
- Immediate access to cash – It gives you immediate access to cash. For cell tower construction companies, that means never having to wait to hire new technicians, accept new contractors or purchase new equipment.
- Consistency – Still waiting 30 days or more for customer payment? Instead of wondering when you’ll receive your next payment, your business can benefit from same-day funding and cash flow by using factoring as a finance solution.
- Growth – It’s extremely flexible. Unlike a traditional bank loan, as your revenue grows, so does your financing. If your cell tower construction company is growing fast, factoring finance is an excellent tool for more growth and success.
Want to Learn More About How Factoring Finance Can Help Your Telecom Business?
For more than 20 years, Scale Funding has been helping telecom companies with their cash flow. If you’d like to learn more about our invoice factoring solutions, contact one of our Scale Funding finance specialists today. Or, call 800-707-4845.
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