[Jstarr]

** Correction, small business lending.

Facebook 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.

[mca2150]

I think they have so much cash they don't know what to do with it. It looks like this is leaning towards a non-profit endeavor more than an actual business looking to make good returns.

[abfunders]

The factoring is not an MCA. It's an actual factoring product.

[Jstarr]

Micah,

I noted a ** correction - I just find it amusing that they are entering this space, Like @mca2150 noted " they have so much cash that they dont know what to do with it"

The factoring is not an MCA. It's an actual factoring product.

[ABillionPoints]

Not an MCA at all, it's factoring invoices. interesting decision to limit the types of businesses.

[fin4all]

nobody knows how to read anymore. lol.