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Telecommunications Financing Services Overview
For centuries, companies have been leveraging their assets to generate cash to grow their business. The additional working capital allows them to expand marketing campaigns, complete acquisitions, and implement strategies to increase the value of their company. This process can work for almost any company that has receivables, equipment, real estate, or inventory.
However, most financing companies are not interested in providing a line of credit to companies with monthly billings totaling less than 5 million dollars.
Here’s
Why:
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Lenders are intimidated by the complexity of telecommunications financing. |
| 2. |
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Typically, lenders do not understand how telecom companies bill their customers. |
| 3. |
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Lenders do not like the large volume of and small dollar amounts of invoices in telecom financing. |
| 4. |
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Generally, lenders are apprehensive about the 45 to 90 days it usually takes to collect on telecom invoices. |
| 5. |
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The entire financial services industry has shied away from telecommunications funding due to infamous failures of some of the industry's most well known companies.
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