With small businesses still struggling to cope with the worsening effects of the pandemic, Facebook has announced two new initiatives to support SMEs and help them better manage their cash flow in their time of need.
First, Facebook is launching an expansion of it Invoice Fast Track Program, which enables SMEs to apply to Facebook to buy up their outstanding invoices, which offer immediate cash flow benefits.
As explained by Facebook:
‘For a low fixed amount, eligible businesses can immediately get cash for the goods and services for which they have invoiced their customers, but otherwise have to wait months to be paid – time and capital that they can now use to get into the recover investment and growth of their companies. We will continuously fund up to $ 100 million in invoices and operate the program in partnership with Provider success and Crowdz.”
Through the program, eligible businesses can send their invoices to Facebook, who will then pay Facebook immediately. Facebook then notifies the customers concerned that they will pay for the Facebook Invoice Fast Track program as soon as the invoices reach the deadline – so Facebook essentially becomes a kind of collector on behalf of the business, while the business does not have to wait. cash.
Facebook launched the program for the first time last year with a variety of providers, but from October 1 more US companies in the US will have the opportunity to apply.
Businesses can find more information about the program at the dedicated Invoice Fast Track mini-website.
In addition, Facebook is also launching a new in-app application process for lending and lending opportunities, making it easier for SMEs to access resources and information.
As you can see here, the new exhibition of resources highlights grant opportunities and programs for business education, as well as SME groups that can help you with guidance and support.
Facebook works with a seriesmission-driven organizations for the initiative, which aim to provide resources to owners from underprivileged communities, to ensure that such opportunities reach the needy.
Business page administrators can access this new experience on Facebook by clicking Business resources and funding for small businesses.
According to Facebook’s latest State of Small Business report, more than 60% of small businesses are experiencing some difficulty in paying business-related expenses as the COVID crisis erupts, and while the end is now seemingly in sight, for many it will still be too far to stay in business. current impact figures.
This is logical — many SMEs work monthly, with their income and expenses in a fairly close relationship, so that even short-term closures or business constraints can have a big impact. And if you also consider that the vast majority of businesses are SMEs, it also indicates the broader economic consequences that will eventually flow to all organizations and may affect revenue for some time, even in the post-COVID environment.
That’s why funding and support initiatives like these are important, and it’s good to see how Facebook wants to invest in this critical element and help smaller providers as they work to manage the ongoing consequences.