Invoice Funding Fills Critical Gaps in Cash Flow for Telecom
A startup company needs more than just a great idea and a market of customers willing to pay for the products or services. The cold hard truth is it needs cash. Without collateral, bank loans are hard to come by. Initially, what can keep the doors open and the equipment humming is selling invoices that have been sent to their customers, known as factoring or invoice funding.
Inflation isn’t done yet – but for small-to-mid-sized businesses, there are alternative ways to weather the storm.
Recently, Kompass Funding conducted an online poll, specifically regarding finding new workers, retaining talent, inflation, and cashflow. Unsurprisingly, one of the biggest concerns companies face today is inflation. We’ve seen record-high PMI statistics over the last two months, and it’s no surprise that owners are looking for outlets to cope with rising costs.
Kompass Funding helps to strengthen startup companies by increasing their working capital.
The Situation: A startup company specializing in 5G underground boring, a method of installing underground utilities including pipes, conduits, or cables, was winning numerous new projects and were in high demand; however, they struggled to come up with the capital to purchase new equipment and hire additional employees, two necessary components in order to continue to scale their business. As a startup that opened its doors in early 2022, the company did not attempt to seek out traditional funding such as a bank loan.
