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