Telecom companies constantly need to invest in their infrastructure to match customer demand and stay competitive within a billion-dollar industry. From constructing new towers and upgrading to provide 5G support to managing payroll, it can be challenging to generate the cash flow needed to fund your operations. Waiting weeks (or months!) for customers to pay for services rendered just isn’t an efficient financing solution in an increasingly high-speed industry. Telecom invoice factoring can give you the cash flow you need to grow — fast.
What Is Telecom Factoring?
Invoice factoring is an alternative financing solution to traditional bank loans that can advance you up to 90% of the value of an outstanding invoice. By selling your invoices to a factor, they are responsible for the collections of payment from your customers. Once paid in full, your factor will pay you the remaining invoice balance, minus a small commission fee.
By using factoring for your telecommunications company, you get the working capital you need to help grow your business.
Factoring is a popular business financing option across B2B industries. Working with a factor can offer telecommunications companies the cash they need to fund operations costs, including:
- Rent and utilities
- Marketing campaigns
- Payroll and human resources
- Equipment costs
- Hiring contractors
- Legal retainers
Working with a factor ensures you won’t need to worry about daily withdrawals, interest rates or paying off interest at the end of a term loan. The cash your factor advances you is your cash — it’s collected from your customer invoices and provided to you from your factor.
Who Can Benefit from Telecom Factoring?
Invoice factoring can be the perfect financing solution for several players in the telecommunications industry, such as:
- OSP construction, repair and maintenance services, including optical fiber cabling, balanced twisted-pair cabling, duct and fiber installers
- Wireless equipment providers
- BTS installation, repair and maintenance providers
- VoIP providers and resellers
- Telecommunications construction companies and subcontractors
- Telecom equipment manufacturers
- Boring and trenching companies and subcontractors
- Engineers and telecommunications planners
- Telecommunications installers
- Telecom field service providers, such as back-up power and power services
- Telecom equipment maintenance and upgrade providers
- Small and mid-size telecom companies
“If it wasn’t for Ernane, I’m not sure where I’d be right now with my business. He’s on top of everything. I can hire more technicians now and I’ve grown the business by about 20 percent…”
Owner, A&J Telecommunications, LLC
Why Choose ei Funding?
ei Funding is your trusted telecom factoring partner. Choosing us means getting a cash advance of up to 90% of the funds from your unpaid invoices. This frees up your cash and time that gets tied up in collections. Our financial advisory services can help your company manage its debt, ensure cash flow and even get equipment financing — all to keep your business growing steadily and profitably.
Hear It From Our Valued Customers
I have no words to describe how much he’s helped me and how he’s helping my business grow
If it wasn’t for Ernane, I’m not sure where I’d be right now with my business. He’s on top of everything. I can hire more technicians now and I’ve grown the business by about 20 percent.
Owner, A&J Telecommunications, LLC
This is one of the best funding companies
If we didn’t go through Ernane, we would have had to wait 30 days before our first check came. After we started working with him, we were able to pay our employees on a regular basis. Otherwise, we would have had to have them wait.
Office Manager, Blueintegration, LLC
Ernane has helped me every step of the way with capital for my business!
When I first started working with Ernane, I had the concept for my business and a really strong pipeline, but I was in a really delicate balancing act between accounts payable and accounts receivable, operations costs and cash flow. He’s just someone I want to do business with.
Managing Director, Omni Public
It’s been a real game-changer
We’ve worked with Ernane since last Spring. He’s helped us immensely as far as our cash flow. It’s been a real game-changer, honestly. He’s been keeping things going for us. I wish we had known about Ernane sooner in our business cycle, it would have been really helpful.
Unity Vibrations Kombucha
We were able to establish a rapid and ready turnaround
Before we started working with Ernane, it was horrible. It was hard to get invoices on time and correctly and there was just no feedback from our bigger clients.
Once we started working with him, we were able to establish a rapid and ready turnaround. I had the funds available when I needed it and a faster turnaround in payment to our contractors.
R&R Texram LLC
I would not consider any other factoring firm to handle my business.
Ernane is a very valuable asset to any organization and is a key component and partner in my company’s success. He has always been very responsive, from day one. He treats me as if my business and success were his top priorities. No matter the size of the invoice, he promptly gets them turned around.
ROTCA Services, Inc
Frequently Asked Questions
Invoice factoring allows you to sell your company’s invoices to a professional factoring company in order to quickly get the cash you need to support your telecom business’s growing expenses today. It can be broken down into five steps:
- You provide your telecom services to your Customers.
- You send invoices to your Customers.
- You sell your invoices to a factoring company and get paid a cash advance of between 80% – 90% of the invoice’s face value, minus a nominal service fee.
- Your factor collects payment directly from your Customers, typically 30-45 days later.
- Once your factor has been paid in full, they’ll pay you the remaining invoice balance.
Invoice factoring offers a fast, flexible way to get the cash flow you need to cover the expenses of operating a telecom business — from payroll to equipment purchases, your factor’s advance gives you immediate access to the funding you need to keep growing.
Since factoring consists of the sale of your invoices, the money you’re advanced is your money, not a telecom loan — no need to worry about long payback periods and unpredictable interest rates. If you frequently struggle with slow-paying clients and need immediate cash to continue growing your telecom business, factoring may be a better fit than traditional loans. If you want to learn more about alternatives to telecom loans, check out our blog: 3 Popular Telecom Loan Alternatives to Consider