Facebook Enters the Invoice Factoring Arena and More

| By:


facebookFacebook is the latest tech company to enter the small business financing space. Starting October 1st, Facebook will begin offering eligible American businesses the opportunity to sell their invoice receivables for cash upfront. The only cost is a 1% fee of the A/R and invoices can be as small as $1,000.

Dubbed Facebook Invoice Fast Track, a promotional video touts it as a solution to cash flow challenges.

The caveat is that it will only be open to businesses owned by minorities, females, veterans, LGBTQ+ or someone with a certified disability. Also, the invoices must be issued to a corporation or government entity with an investment-grade rating. An outstanding invoice from something like “Joe’s corner t-shirt shop” for example, would not be eligible.

Facebook COO Sheryl Sandberg predicts the company will be funding $100 million in invoices on an ongoing basis.

That’s not all, however. The company is also introducing a new small business loan resource through an arrangement with Connect2Capital. Facebook claims that in doing so, it is not “brokering” loans.

The developments may not be all that unsurprising given Facebook’s recent foray into India’s small business loan market.

Last modified: September 11, 2021
Sean Murray



Category: Business Lending

Home Business Lending › Facebook Enters the Invoice Factoring Arena and More


    Velocity Capital Group

    Green Note Capital

    Arsenal

    Torro

    Total Merchant Resources

    BizFund

    Cloudsquare

    SOS Capital

    Big Think Capital

    AMA Recovery

    Avanza Capital

    Unique Funding Solutions

    Bitty Advance

    Fox Business Funding

    IOU Financial

    Forward Financing

    National Funding

    Easify

    Smart Business Funding

    CapFront

    Dedicated Financial GBC

    Titan Asset Management

    Better Accounting Solutions

    Pearl Capital

    Highland Hill Capital

    Spartan Capital

    Paz Funding Source