| The telecommunications industry is a promising industry | | | | have their own intrinsic value which the lender can |
| with a steady rise in the market since the last decade. | | | | take advantage of in case the borrower defaults. This |
| However, the complex nature of the industry makes it | | | | makes it low-risk for the lender, and allows the |
| difficult for many financers to understand the dynamics | | | | borrower to get loans more easily. Factoring can also |
| of the business, making funding difficult to acquire. This | | | | build up a small company's credit, making it more |
| lack of funding also makes it difficult for small telecom | | | | economically viable. |
| companies to compete with their giant competitors. | | | | One way factoring can be used to generate income is |
| One solution, telecom factoring, gives independent | | | | to advance a percentage of the invoice. This means |
| telecommunications companies the opportunity to sell | | | | that your company gets a percentage of the payment |
| their unpaid invoices at a discount. Typically, small | | | | as soon as the invoice is issued, thus eliminating the |
| telecom businesses face the problem of delays in | | | | delay and giving you the funds you need today. The |
| payment, which can subsequently affect business | | | | delay in funding is a major problem in the |
| expansion. With telecom factoring, a company will not | | | | telecommunications industry, which also hurts an |
| have to wait to receive payment from the customer. | | | | independent telecom company's viability with other |
| Another great advantage of telecom factoring is that it | | | | lenders. |
| allows companies to use their unpaid invoices as an | | | | Factoring is also a great way for telecommunications |
| asset for borrowing money. These companies often | | | | companies to get the funding they need. This flexible |
| find that traditional lenders are wary of loaning to them. | | | | funding program frees up working capital that can then |
| It is much easier for more traditional businesses with | | | | be used for acquisitions, inventory or growth. This |
| physical assets to get the funding they need from | | | | makes telecom factoring a viable financing option for |
| banks or other lenders. Factoring allows telecom | | | | many businesses. For small telecom businesses that |
| businesses to get the funding they need without having | | | | need capital to get their company growing, factoring is |
| to convince a bank to fund them. | | | | a great way to make use of your assets. |
| Unpaid invoices are known as "receivables." They | | | | |