What Types Of Companies Benefit From Telecom Invoice Factoring?
Maintaining technology companies is not an easy thing; it requires a huge sum of money to keep up with the demand. The pressure is not only in matters of finances but also the demand is so high, making it difficult for a new business.
That’s where telecom financing chips in and assists many businesses financially; making it simple to focus on competing with its competitors. Not all sort of companies can benefit from Telecom invoice factoring.
Companies can benefit from Telecom invoice factoring
As mentioned earlier, not all companies can benefit from telecom financing. One thing to keep in mind telecom financing is not a loan rendering service; it is a way to receive immediate payment on customers invoices other than waiting for 30 days. Invoices help telecom companies maintain cash flows even when the customers delay their payments.
There are two types of companies that can benefit from telecom invoice factoring:
- Telecom and wireless contractors
- Companies that provide goods and services to the Telecom companies
Below is the list of contractors that can be using the telecom invoice factoring:
- Power supply and back-power
- System maintenance
- Technology upgrades
- System installation
- Engineering and planning
- BTS installation
- OPS installation
When it comes to companies that provide goods and services to the Telecom companies, not every service can be covered by the invoice.
Below is the list where an invoice can be useful:
- 911 services
- Directory services
- Snow removal
- Food services
- Risk management
- Legal service
- Human resources
- Information technology
- Call center services
How to access invoice services:
Step 1: Write your quotation
The company needs to settle their bills with a net term of 30-120 days. They should also make sure they have nothing to sell to receive financing.
Communicate with the invoice service providers, discuss your cash flows and the business details. Write a quotation to the invoice service providers for you to access the services.
Step 2: Submit the quotations and the invoices
After documenting the invoice request, submit it for approval within a few days. If approved, the company will receive an advancement which will be between 80% and % of the invoice value.
Step 3: receive cash for the invoices
After the approval, the invoices are ready any time an invoice is done the money is directly sent to your bank account through wireless transfer. Few days after the company has settled its bills a reversal will be done to compensate for the services offered by the factoring company
Benefits of invoice factoring to a telecom company
- Secure cash flow
Companies that work with invoice factoring don’t have to worry about delay in payments by clients. Invoice factoring offers payment within 24hours without having to give part of the business to the third party.
- No collaterals needed
Offering collateral is a way that ensures that money will be paid. But with invoice factoring, nothing is needed to secure the money.
- Cost no money to get an invoice service
There are no payments done to the telecom service to get approved for an invoice. Only a small fee offered of around 1.5-3% as a to generate business from good working capital cash.
- They collect payment on the company’s behalf
The business is safe from the client how to fail to pay or delay the payments. It is the role of an invoice factoring to directly correct payment from the clients.
- Invoice factoring is better than loans.
Many businesses make a mistake of getting a loan as a way of getting cash flows. Loans give the companies burdens that can be avoided with invoices.
When dealing with a telecommunication company, it is advisable to consider having an invoice factoring than acquiring loans. Invoices offer flexible terms that secure the cash flow of a company.