Communications Funding: Getting What You Need To Make Your Small Business Grow

Your company needs money quickly. You can borrow money, or sometimes
qualify for federal grant money, but there's a new way to get the
communications funding your business needs. It's called communications
funding. It offers a great alternative to banks and traditional lenders,
who are wary of lending to telecoms.

The Trouble With Communications Financing

What makes it tough in this industry is that most traditional lenders
will not sport you the cash to start up a telecom. Communications
funding is hard to come by because banks and other lenders don't
consider you to have any assets. In other words, you can create a
telecom industry practically out of thin air, and thin air has no
collateral.

Basically, banks don't like risk. The telecom industry is considered
risky because so many small companies have launched and then failed.
There's no collateral that the bank can seize if things don't work out
and you are unable to pay. For this reason, you have to look for
alternative sources for your communications funding.

Where To Find Sources

Rather than heading for a bank, look for a credit company that
specializes in high-tech industries. There are lenders who specialize in
this field. They offer loans to start-up companies, understanding well
the unique challenges that face telecommunications companies.

Ask Uncle Sam

You may be able to qualify for federal money to launch your business.
Periodically, the government offers money to start-ups in order to
stimulate the industry. The telecom industry has been in a major crunch
the last few years. The heyday of easy money pouring in is over, and in
order to help a much needed industry, the government gives grants. This
is a tough process though; there are lots of forms to fill out, papers
to submit and deadlines to meet. Still, it's worth it to get free money
in the end.

Turn Your Old Invoices Into Cash

The most viable option for telecoms is to sell old uncollected invoices.
This is called "communications factoring." Factoring means selling your
invoices to another company, who then collects the debt. They pay you a
majority of the sum up front and the rest later, and they get all the
interest. It's a win-win situation, and it's money that you don't have
to pay back.

Factoring is a great way to get the communications funding that you
need. It's simple and it's not a loan, which means that the money is
yours to keep. It offers a great way to get the fuel your telecom needs
to run smoothly.

Article Tags:
Communications Funding, Telecom Industry