Communications Funding: Getting What You Need To Make Your Small Business Grow
In the high tech business world of today, starting a telecom company is a viable way to make great money. It's fairly easy with anyone who has a little technical no-how to start and grow a business in the telecom industry. The demand is there, and the only major hurdle you face is how to secure communications funding.
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.
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