It is hard to obtain a conventional small business loan no matter who you are or what your business is. However telecommunications funding is even more difficult to come by and so much harder to find. This is because lenders who are traditional in nature are leery of getting involved with the telecommunications operation in every way. Telecommunications is not easy to understand and cannot be looked at from a black and white perspective in the way that retail operations can be. Many established financial institutions do not understand how telecom works and for that reason they are nervous to help with any financing ventures.
The good news is that there are telecommunications service provider entities out there that focus all of their attention on telecommunications funding. These are specialty lenders. If you are in the market for some capital to get your small to medium telecommunications business up and running then you have more than one option that these lenders will make available to you. Let us look at your options now.
Factoring is one of those options. Your invoices or accounts receivable for your telecoms business are sitting quietly in a folder or on your desk waiting for payment. You can expect to wait anywhere from 45 to 90 days for payment to arrive when you become a part of the telecommunications industry. However as you wait for payment to be remitted a need may arise in your business that calls for necessary funds right away. When you work with specialty lenders,Guest Posting factoring means that you can sell the invoices you currently have at a rate that is discounted, and in return you can receive the cash you require right now as opposed to two to three month’s time.
Asset-based loans are another option. This is a funding solution that is only viable if you have enough in the way of assets that can be used as collateral. How it works is that you can borrow against everything from inventory to accounts receivable to contracts to your equipment. With enough collateral to borrow this can help to grow your business and can help it become more successful.
When looking for a specialty lender it is really important that you locate one that knows about telecommunications funding. Experience and knowledge in this area is essential for your lender of choice. This will work in your favor as the owner of the business. The assets that are connected to your agreement with the lender are on the line if you default on your loan, but it is not necessary for you to make any non-recourse agreements with the party that provides financing. The same holds true for personal guarantee.