The social media giant, Facebook, announced a larger funding initiative. It is a venture into the business funding space from a company that does not focus on funding as a core aspect of their business model. What is Facebook’s new small business funding program and how does it affect your small business?
Facebook Unveils New Small Business Funding Program
First off, this program offers to purchase up to $100M in unpaid invoices from 30,000 women and minority owned businesses. This comes at a flat fee of 1%. They state that funding will happen within a matter of days. This might sound complicated, however, this is just invoice factoring.
What Is Facebook’s Small Business Funding Program?
There are benefits to this funding program. Selling your outstanding invoices at a discount means more cash on hand to run your business. This working capital injection can lead to more sales and investment in your business. There are no repayments associated with this type of funding. Instead, it is a debt-free working capital solution that many small businesses qualify for, even if they do not qualify for a traditional bank loan.
How Factoring Works:
What Else Should You Be Aware of?
One concern with this program is that small business funding is not a specialty of Facebook. Invoice factoring companies that purchase outstanding invoices from small businesses at a discount do this all day, every day. Factoring companies specialize in small business funding and live and breathe in this space. Any issues that arise with funding can be quickly resolved. Further, this is an ambitious venture for Facebook while not having decades of experience in the funding space. A huge benefit of invoice factoring is the speed of funding, but Facebook is offering funding within days rather than the same day. This is something to consider, since small businesses often operate on lean margins and days spent waiting for cash can make a huge impact.
Why Sell Your Invoices?
Eagle Business Credit is a factoring company in Atlanta, Georgia. We serve businesses all across the country, and we are experts in the small business funding space. Our factoring services can fund businesses within 24 hours, so you don’t have to wait to be paid for your outstanding invoices. If there are any hiccups in the funding process, we are fast as resolving them. Why? Because this is the only thing we do, fund small businesses. Ultimately, Facebook is a great place to grow your friends list, and Eagle is a great place to grow your business.