Get connected and obtain funding for your cable installation and sales business
From high speed internet broadband to cable television, VOIP phone lines, satellite TV, and live video streaming services, the telecommunications industry plays a larger role in our lives than ever before. Reliable Wi-Fi service is accessible from nearly everywhere, and people are connected almost constantly to their internet-enabled phones.Read More
Major telecommunications corporations rely on little telecommunications goods and service providers to perform a number of smaller yet vitally important jobs for them. These providers include:
- Cable installers
- Sales companies
- Equipment and fiber optics manufacturers
- Wireless and satellite communication equipment manufacturers
- Software and hardware engineer consulting firms
- Technical and customer service support staffing firms
- Technician and maintenance companies
- Underground cable line diggers and installers
High demand comes with the price of slow receivables
For these small businesses, the good news is that business is aplenty. Every day, consumers are demanding capabilities from their networks. They want to download movies, TV shows and video in a shorter period of time. They want greater access, less waiting, fewer interruptions and more streaming. With demand peaking, small businesses in telecom have colossal opportunity for growth and expansion.
Dial-up collection speeds in a broadband-paced world? Factoring solves this problem
The downside of being a small player in this rapid growth industry is lack of working capital. As those in telecom know, having customers is not the same as having solid cash flow. Despite their dedication to producing ever speedier telecom services, telecom has a reputation for paying its small business vendors at a dial-up pace. Much like partnering with the government, partnering with large telecom firms can be lucrative but the small businesses that serve them must take the steps necessary to maintain their own financial strength.
One option available to cable installers, cable technicians and others is through invoice factoring or factoring accounts receivables. The cable installation company sells its creditworthy invoice to the factoring company for slightly less than the value of the invoice. The factor then pays the installation company the difference in a matter of days, not weeks.
With this installation of capital, the small business can then improve its cash flow. In this way, it will have enough money on hand to cover both operations expenses – overhead, cost of materials, payroll, etc. – and costs of acquiring new business. Factoring could be an excellent option for those who provide goods or services to large telecom corps because they most likely have good or excellent credit scores. These are the ideal clients for factoring companies.
Robust cash flow is worth the cost of factoring receivables
For cable installers, technicians and the like, obtaining new business can be a challenging highly competitive endeavor. Having sufficient working capital available to the business can mean the difference between business expansion and business contraction. Moreover, the cost of factoring business receivables, which can vary from 8% to 20%, is considered by many in the industry just a cost of doing business in telecom.
1202 Monte Vista Ave #20, Upland, CA, 91786
600 university st.ste#2328 seattle, WA(Washington), Seattle, Washington, 98101
191 University Blvd. #272, Denver, Colorado, 80206
220 Ave I , Redondo Beach, California, 90277
4700 South State Street, Salt Lake City, Utah, 84107
250 Yonge St #2201, Toronto, ON,