Results 1 to 6 of 6
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09-13-2021, 12:50 PM #1
Facebook is entering the MCA business
** 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.Last edited by Jstarr; 09-13-2021 at 12:56 PM.
Jerry Starr
Insource Funding
433 Plaza Real,
Boca Raton, Fl 33432
P: 800-805-3391 Fx: 561-270-6895
insourcefunding.net
WHAT WOULD YOU DO " IF " YOU HAD THE CAPITAL
◆ 50% LTV - No Fico Required
◆ 90% CLTV on Purchases
◆ Investment Residential / Commercial Properties
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09-13-2021, 01:29 PM #2
- Join Date
- Aug 2020
- Posts
- 138
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.
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09-13-2021, 01:47 PM #3
- Join Date
- Feb 2017
- Posts
- 3,347
The factoring is not an MCA. It's an actual factoring product.
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09-13-2021, 01:54 PM #4Jerry Starr
Insource Funding
433 Plaza Real,
Boca Raton, Fl 33432
P: 800-805-3391 Fx: 561-270-6895
insourcefunding.net
WHAT WOULD YOU DO " IF " YOU HAD THE CAPITAL
◆ 50% LTV - No Fico Required
◆ 90% CLTV on Purchases
◆ Investment Residential / Commercial Properties
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09-14-2021, 03:43 PM #5
- Join Date
- Jun 2021
- Posts
- 39
Not an MCA at all, it's factoring invoices. interesting decision to limit the types of businesses.
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09-14-2021, 04:00 PM #6
- Join Date
- Apr 2019
- Posts
- 319
nobody knows how to read anymore. lol.
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