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Financing a Telecom Company
4 challenges to financing a telecom company.

4 Challenges to Financing a Telecom Company

December 28, 2015

cell tower safetyFinancing a telecom company can be a challenge – it’s especially frustrating for cell tower services and cell tower maintenance companies when the industry and their businesses are in growth mode. With the implementation of 4G LTE, tower installation, cell tower construction and cell tower maintenance companies are ramping up efforts to meet the demands of infrastructure, transmission and reception equipment and more. Here are some financing challenges facing telecom service companies in 2015.

1. Telecom Service Companies Wait up to 90 Days for Customer Payment

Telecom services and maintenance companies are used to long, industry-standard pay terms. Most telecom customers pay in as much as 90 days. But, telecom service companies need steady, consistent cash flow to hire new technicians and win more contracts. Despite the fact that telecom service companies need steady operating cash for payroll, equipment purchases and for business growth, they are constantly in a working capital crunch with little or no help from banks.

2. Bank Financing Isn’t Right for Every Telecom Company

Telecom companies are in growth mode – but not every company has the profits or financial history to secure traditional financing through a bank. And since the telecom industry has common, 90-day collection times, banks aren’t always so willing to finance. If a telecom company can’t qualify for a traditional personal or bank loan, they need to seek alternative options. And even if telecom company can secure alternative financing, it’s very common for business owners not to want to work with a bank. Long approvals times, rigorous underwriting and capped loan amounts can sometimes be more trouble than they’re worth.

3. Telecom Companies Choose Factoring

Without positive cash flow, telecom companies are choosing to factor, as it provides cash in hand immediately for operations. Factoring can be an excellent option for telecom companies looking for a flexible financing solution for telecom. When shown side-by-side, factoring offers many benefits over a traditional bank loan. Unlike traditional bank lending, factoring provides immediate financing for telecom companies. Instead of waiting weeks for approval, factoring can provide telecom companies with fast quotes (30 minutes or less) and funding within 24 hours.

4. Choosing a Factoring Company to Help Finance Your Telecom Company

Selecting the best factoring company to help finance your telecom company is essential for long-term success. Each company has a variety of services they offer, as well as many types of industries they specialize in. If you’re looking for immediate financing for your telecom services company, consider contacting TCI Business Capital. Since 1994, our factoring specialists have been helping telecom businesses just like yours access the working capital to grow.

About TCI Business Capital

TCI Business Capital is a privately held financial services company founded in 1994. The company has operations in Calgary, with headquarters in Burnsville, Minnesota, USA. TCI Business Capital provides a full range of business financial services including accounts-receivable management, asset-based lending, collection services, credit analysis, factoring services, risk assessment, treasury and more. The company is proud to be recognized for its reliability, flexibility, responsiveness, innovative products, customer service, and exemplary corporate citizenship. For more information visit TCI on the web at www.tcicapital.com.

 
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