Business Finance Resource Availability Issues For Telecommunications Companies
Keywords: telecommunications financing, Thermo Credit, financial services company, financial services
Small telecommunications businesses face many hurdles in trying to compete in the marketplace with the big telecom giants. While your small telecom company can offer your local customers better and more personalized services than the big telecom companies can, there are many barriers to getting your message out there and growing your market share. Just as the old adage about getting a job without experience goes, it is hard to grow your business when you need all of your working capital just to run your business day to day. While the telecom giants can call up their banker and get a loan, it isn’t as easy for your small business to do.
For hundreds of years companies have been utilizing the value of their assets as collateral for borrowing money. Your distant relative who owned a small grocery store may have used his inventory and property value as collateral for borrowing money to add onto his building or replace his antiquated refrigerators. As a small telecommunications business you may want to take a similar action in order to grow your business and service offerings.
As you may have experienced, most of the major financing companies out there just plain do not understand how telecommunications businesses work. Unless you are AT&T, or another large telecommunications company, with a monthly billings total of over 5 million dollars, most typical business finance resources are not that interested in talking to you. It isn’t that they are not interested in your business and its success; they just simply do not understand how telecom billings work.
As a small business owner, a potential lender may ask you to make a personal guarantee or sign a recourse agreement in order to obtain funding. This can be a scary proposition and place you personally at a risk level you may not be comfortable with. If you come to this point with a lender then it is time to move on and look for a better alternative.
One alternative available in telecom financing is factoring. Factoring is the process whereby your company can borrow money against its receivables. Traditional factor rates however can be high, because lenders balk at the way telecommunication company’s bill, and the relatively small amounts of each individual billing. If you are able to locate a lender who will give you a discount, because they understand the uniqueness of telecom financing, factoring can be a good option to explore.
Another alternative you might consider for your telecom funding needs is an asset based solution. By securing your funding with your contracts, equipment or other assets, you can borrow against them and use the additional capital to expand your business. Asset based solutions can be a bit easier to find, and cheaper than trying to do a receivables factor.
A third alternative to explore is the idea of an investment capital cash infusion. If you are open to using investment capital this can be a wonderful way to grow your business.
While telecom funding can be hard to find, there are options open to small telecom businesses. By considering all of your options and selecting the one which fits your business the best, you can be well on your way to growing and expanding your business.
Thermo Credit LLC provides asset based solutions and works with partner companies to offer loans, lines of credit, and capital investment. We are rich in telecom funding experience. We can offer insight beyond strictly business financing resources. Learn more at www.thermocredit.com.
Previous Articles Highlighter:
Eight Ways To Save Money On Gas (1)
6. Be a loyal customer. Some gas stations will give you a loyalty discount if you buy from them regularly or join a loyalty club. Some credit cards will also give points or cash back for gas purchases.
Considering Health Savings Accounts (2)
This includes deductibles and co-payments, but not premiums. So you can buy an individual high-deductible healthcare policy, or purchase one through your employer. To qualify as an HSA-eligible policy in 2007, your health insurance plan must have a deductible of at least $1,100 for individual coverage or $2,200 for families.
7 Cash Flow Steps To A Healthy Budget (3)
Mortgage, rent, car payment, credit card payments, utilities, groceries, eating out, entertainment, and anything else you spend money on. For those expenses that fluctuate, such as groceries and gas, use the three month average method to get an accurate amount.
Getting Engaged? How Should You Handle Health Insurance? (4)
Getting married is a major event in every individual's life. And with this major event comes a major change in responsibilities. Reexamining your health insurance needs before the ceremony is over will help you sustain your relationship through sickness and in health.
Real Estate Financing - What You Need To Know About Home Mortgages Before You Commit (5)
Keywords: real estate financing, home mortgage, loan, commercial mortgage, interest rate, refinance, bad credit, tips One of the first steps before you start looking for your dream home is to ask yourself what you can afford to spend on a monthly house payment.
Student Loans Also Known As PLUS Loans (6)
The second type of student loan is the loan given to parents. These are also known as PLUS loans. These loans have a much higher limit. This helps in meeting any gap in the education cost but the payments start immediately as there is no grace period.
Borrowing Should Be 'Structured In Best Way Possible' (7)
Despite secured loans often reported as cheaper than credit cards, she claimed that consumers may find themselves paying out more money if they choose to spread out their monthly repayments over a longer period of time.
What Is High Risk Home Owner Insurance? (8)
If you live in an area prone to these types of conditions your insurance rates will be higher. It is also important to double check with your insurance provider to make sure that you home owners policy does in fact cover this type of disaster.
Offer A Vendor Equipment Leasing Program To Enhance Sales And Profits (9)
With a vendor leasing program in place, the leasing company receives a steady flow of very similar clients who are seeking equipment now, and need financing. Since no additional marketing funds were incurred to get those clients,leasing companies pass on the savings by virtue of favorable pricing.
Mutual Funds Make Investing Simple (10)
And, just like with individual stocks and bonds, your shares increase in value when the share price of stocks within the portfolio appreciate, or when interest payments are made on the bonds.
Get The Best Debt Relief From A Free Debt Consolidation Program (11)
You can get a free debt consolidation program online too. Various sites provide such programs. Only check the genuineness of the site before committing. If you are thinking that with a past of bad credit why would anyone trust you with another loan?
Student Loan Default - Avoid It With These Easy Steps (12)
(c) 2007 Best Student Loans Info. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at www.BestStudentLoansInfo.com
Establishing Credit Though Student Credit Cards (13)
If the debt falls on the co-signer, it could then affect their credit rating as well. Therefore, it is essential that students all have a budget in place before using any credit card.
Put Your Agent To The Test (14)
Call a couple of their references and see if you can get a feel for how their home selling experience with the Agent was. Don't be shy, either. Evaluating their performance is critical to you making the right choice.
House Price Growth 'Slowing' (15)
According to the financial services firm, the typical British property rose in value by 2.1 per cent during the second quarter of 2007, compared to the previous three-month period which witnessed growth of some 2.3 per cent.
Britons 'Get Carried Away' With Holiday Spending (16)
Savings manager Ross Dalzell said: "It's easy to get carried away with the holiday spirit as we all want to make the most of our time away, however, many holidaymakers run the risk of letting their holiday dreams turn into a potential financial nightmare.
Insuring Yourself In A Changing Economy (17)
With the evolving nature of employee benefits, you should take a look at the revolutionary comprehensive individual health insurance solutions created by companies specifically for young, healthy individuals. Pat Carpenter writes for Precedent Insurance Company.
The High Deductible Health Plan - What Is It And How Does It Benefit Me? (18)
As with an HSA, your HRA balance will roll over from year to year, but, unlike an HSA, employees don't own the fund. So if you leave the company, you can't take your HRA funds with you or roll them over into new accounts.
Medical Bankruptcies The Growing Reality (19)
The numbers grew to 54.5 percent when an additional three other factors were included as triggers for medical-related bankruptcies. The study assessed that medical bankruptcies currently affect approximately 2 million Americans annually, including 700,000 children.
'Marked Growth' In High Loan To Value Mortgage Uptake (20)
Just over a fifth (22 per cent) of consumers were said to consult a mortgage broker for guidance, with about one in five said to have researched several options and providers before taking out a loan.
Newer Articles Highlighter:
Is Your Identity Stolen? - What You Should Do (1)
If your account has really been corrupted, speak with someone from the fraud department of that company and notify them about it. Follow it up with a written report sent through registered mail.
The Importance Of Having Umbrella Insurance (2)
Even though multi-million dollar lawsuits are not common, they can happen. So, an umbrella is probably worth it. Jim Pretin is the owner of www.forms4free.com, a service that helps programmers make an HTML form
How To Pick A Good Home Owner Insurance Company (3)
Keywords: home owner insurance company, home owner insurance Peace of mind, security, and protecting your most valuable asset and possessions are the three best reasons that any homeowner needs to have a good home owners insurance policy.
Your Credit Report And Credit Score (4)
People with high credit scores can obtain lower interest rates on their loans and credit cards while those with low credit scores will be given higher interest rates and will more likely be denied of a credit card application, loan application or any other type of credit based service.
The Personal Financial Budget Is The Door To Financial Freedom (5)
With a budget in place you can quickly identify those areas where you are spending to much money and those areas that maybe you need to redirect money to, such as credit card debt, car loans, or even retirement savings.
What Is A Mortgage Refinance? (6)
One nice thing about a mortgage refinance is the ability to lower your interest rate and maintain the same monthly payment you will build your equity much quicker while paying down extra principle.
Understanding Virtual Banking (7)
It is able to offer customers no account fees savings accounts at a higher rate than regular banks, there is no charge either for withdrawals at certain levels. ING also offers very competitive mortgage rates with many flexible options that traditional banks are just catching up to.
When To Refinance Your Home Mortgage (8)
Many homeowners refinance to free up funds for other things like pay off credits cards more quickly, buying a car, another home or growing the family business. To do this type of loan, a cash out loan, they rely on the equity in the home to get the loan amount they need.
Do You Know Why You Want To Become A Trader Online? (9)
Don't be afraid to write your thoughts in detail. When you are thinking of investing even a small amount of money, those who don't do the proper preparation and research are the ones who lose their money.
Buying Home Owners Insurance Online (10)
The online quote has a questionnaire that needs completed that will ask you some other valuable information that helps determine the replacement value of your home and this process may reveal something about your present coverage that you were unaware of.
Understanding Your Annual Percentage Rate (APR) (11)
Years ago, before the APR was required to be disclosed, unscrupulous lenders would promise really low interest rates in order to get consumers in the door. Perhaps the most frequently asked question when signing closing documents revolves around the APR.
Foreclosed Homes List- An Important Tool (12)
.. Lack of complete privacy: Many dishonest companies put the list on websites with an intention of capturing personal information and selling them to other people. This often leads undesirable mails flooding your inbox.
Foreclosed Home Listing- An Insight Into Foreclosed Home Listings (13)
Foreclosure home listings include those homes that have been taken back and then placed in the market to be sold again. You can come across many homes that are placed in a foreclosed listing.
Foreclosed Home- Discover The Truth About Foreclosed Homes (14)
Today, you might find more opportunities for buying foreclosures than ever before. To some extent this is because of the high debt rates getting more people into financial trouble, and partially because lenders are giving mortgages to higher-risk borrowers.
Consumers Determined To Buy First Home (15)
With concerns over future affordability and property prices many are doing everything they can to get on the property ladder as soon as they can. While there are now many flexible, competitive mortgage products on the market which can help people make that step up, first-time buyers have to be careful not to over-extend themselves, especially as there may be further rate rises to come." Meanwhile, some 79 per cent of consumers believe that the base rate is set to rise over the course of the next 12 months.
Buy Foreclosed Homes- Be An Informed Buyer (16)
As Is Now will buy your house in 24 hours if approved and you get cash in your pocket. We help you get rid of your home fast for any reason including to Stop Home Foreclosures : www.asisnow.com
Are You Paying Too Much For Your Loan Insurance? (17)
It can give you the peace of mind that if something should happen to you then your payments are covered for up to a year. This means that you won't be in financial difficulty or risk default if you are ill or injured.
Banking Alternatives: Do You Need A Bank? (18)
Thirdly, having a traditional bank account is usually a good idea, because if any problems arise you can go to your bank and speak to someone face to face. If you look around at all the alternatives to regular banking then you could save yourself money and make banking work more effectively for you.
Britons Should Not 'Sit Back' For Energy Price Cuts (19)
"By moving to dual fuel, paying by direct debit and signing up to an online plan, households can reduce their bills by up to 142 pounds. There's no point sitting back and waiting when three simple steps can save people more money than price cuts have so far to date".
Fixed Rate Loans 'Offer Peace Of Mind' (20)
In June Louise Cuming, head of mortgages for moneysupermarket, suggested that those borrowers wishing to take out a fixed-rate deal should act as soon as possible. Her comments came as research from the price comparison website indicated that a number of lenders were reported to withdraw some of their products following the MPC's decision to increase the interest rate in May.
Permalink to Business Finance Resource Availability Issues For Telecommunications Companies