Telecommunications Funding - Opportunities For Your Small Telecom Business

Telecommunications Funding - Opportunities For Your Small Telecom Business

Traditional small business loans are hard to come by these days for everyone, but telecommunications funding is scarcer. The reason for this is that your traditional lenders are wary of the whole telecom operation. Business is not black and white as in retail and many banks don't understand telecoms and are therefore scared of taking a chance on them. Luckily, there are entities that focus solely on telecommunications funding.

Here are the options offered by these specialty lenders if you are looking for some working capital for your small to medium sized telecom venture:

Factoring- You have account receivables (invoices) sitting in a folder waiting for payment. In the telecom industry, you will wait 45 to 90 days before payment is remitted. Meanwhile, a great deal on some new equipment may come up or maybe you need to revamp your marketing strategies- whatever the opportunity, you need cash now but it is sitting in a folder in the form of an invoice. With specialty lenders, you can sell these invoices at a discounted rate and get the money now instead of 2 to 3 months later.

Asset-based loans- This telecommunications funding solution works if you have enough assets to put up as collateral. You can borrow against equipment, inventory, accounts receivable and even contracts. As collateral, you can use the success of your business to make it even more successful and grow.

Using a specialty lender who is experienced in telecommunications funding also means less hassle for you, the business owner. You do not have to make any personal guarantees, non-recourse agreements and, unlike traditional small business loans where you could lose everything if you default, the only things at risk are the specific assets tied to the agreement.

Discuss your telecommunications funding needs with a specialist to determine what would work best for your business. Whatever you do, don't let the banks get you down when you need money to grow the business. Any of the options above give you the working capital to take advantage of unexpected opportunities. You have to spend money to make money, but you can't spend it if it is tied up in receivables, contracts and equipment. Put your assets to work for you.


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Author: Regular Articles

With telecommunications funding, you can get quick money against the receivables. The best thing is to find a specialized, experienced industry financing company. To know more, visit

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