FACTORING BLOG

Telecom Factoring to Grow Your Business

Telecom factoring gives telecom contractors working capital to make payroll, hire new technicians and win more telecom contracts.telecom factoring

Telecom factoring gives infrastructure-services providers, telecom contractors and wireless contractors funds to prosper and grow. Many telecommunications and wireless contractors use the factoring benefits of cash flow to grow or expand their business opportunities, delivering services that include:

  • Tower Construction
  • Antenna Maintenance
  • Tower Climbing
  • Data Center, CO, Head-End and In-Building Structured Cabling
  • BTS Installation
  • Fiber-Optic Installation
  • Emergency Services
  • Outside Plant Services
  • Decommissioning and Removals

Telecom Factoring is the #1 Solution for Telecom Services Companies

Telecom factoring is a simple, easy way for growing telecom, cable and wireless services companies to keep their working capital rolling. When a new telecom client pays in 30, 60 days or more, factoring provides fast capital to grow and expand.

How does Telecom Factoring Work?

Telecom factoring helps with slow-paying customers. A telecom factoring company like Scale Funding will buy your accounts receivables and advance up to 95 percent of the invoice amount in cash. Once your customer pays, we release the remaining five percent minus a small fee. Using factoring, your telecom company doesn’t need to worry about cash flow. Having access to working capital at all times, your telecom company can make payroll, hire new technicians and grow.

Telecom Factoring vs. Bank Loans

Telecom Factoring Bank Loan
Qualifications based on the credit worthiness of your telecom customers Qualifications based on the credit worthiness of you and your business
Short application process; same-day approvals Long application process; 1-2 months
Immediate funding on telecom invoices in 24 hours or less Funding in 1-2 months, after loan approval
Telecom invoices serve as collateral Equipment, inventory, etc., serve as collateral
No debt on balance sheet Creates debt on balance sheet
No monthly interest Interest paid monthly
Credit, collections and receivables management and back-office services included for your telecom company You’re responsible for credit, collections and receivable management and back-office services
Minimal paperwork to start Extensive paperwork required
Free credit reports Do not provide credit services
Growth – available cash grows with telecom receivables No growth – borrowed money has a limit or capped amount

Is Telecom Factoring the Right Choice for You?

If you are experiencing any of the following, telecom factoring might be the right choice for your business.

  1. You can’t afford to wait 30,60 or 90 days for customer payments
  2. Your telecom business is growing
  3. You don’t want to work with a bank
  4. Your bank turned you down
  5. Your staff is too busy to handle lots of invoicing

Ready to Start Telecom Factoring?

Telecom Factoring is a fast, easy way to get cash when the banks say no. To learn more about Scale Funding’s factoring services, contact the finance pros at Scale Funding.

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