Here’s how our team is powering a $100 million mission to get diverse-owned small and medium businesses paid and thriving.
Accessing working capital for small and mid-size businesses (SMBs) is vital to survival and growth. But many companies attempting to recover from the pandemic through external financing are hitting a wall. This reality is especially true for diverse-owned businesses. So, we teamed up with our friends at Facebook to enhance financing options for the SMBs that need it most. We’re beyond excited to share the Facebook Fast Track program does just that! Our new initiative empowers diverse-owned companies to use their outstanding invoices as a way of accessing cash early and easily.
In this article, we’ll be diving into details about the program and everything you need to know as registration kicks off on October 1, 2021.
Your Guide To The Facebook Invoice Fast Track Program
Small business success fuels everything we do at Crowdz. So when it came to suppliers bouncing back from the pandemic, we knew we didn’t want them doing it alone. As thousands of SMBs reported cash flow as their biggest concern, we realized Crowdz was in a unique position to help. So together with Facebook and Supplier Success, we’ve launched the Facebook Fast Track program. Our goal is to provide diverse-owned SMBs with access to immediate cash to fuel their recovery and long-term growth. The initiative is committed to supporting companies hit hardest by the pandemic, like women and minority-led SMBs.
“For the recovery to fully take hold, supporting our nation’s small businesses needs to be put front and center. They not only represent the backbone of our economy, but also the heart of so many of our communities. Facebook and other large businesses with greater resources and capital have an important role to play in helping small businesses not just survive the pandemic but thrive.”
So How Does The Program Work?
The Facebook Fast Track program allows eligible businesses to break free from net terms and get paid for customer invoices much sooner than they usually would. Think days instead of months. In exchange, participants will pay a one-time, low fee of 1% on the invoice value. Freeing up time and capital for SMB owners means they can focus their efforts on the recovery and growth of their companies.
“We know how important working capital is to SMBs, and this is especially true when they are due money from their customers for work that they’ve completed. Getting that cash today instead of months later can be the difference-maker for keeping employees or suppliers paid or investing in growth opportunities.”
Here’s a quick breakdown of the process:
Step 1: Visit the Facebook Fast Track registration page to sign up.
Step 2: Once your business is approved, upload eligible unpaid invoices from your customers.
Step 3: Take advantage of a one-time low fee of 1% on the invoice value.
Step 4: Get money in a few days instead of waiting to be paid.
Step 5: Facebook will notify your customers that they’ll pay the Facebook Invoice Fast Track program when the invoices reach term.
How Can The Money Be Used?
Because every small and mid-size business has a different rebound plan, funds can go towards various purposes. For example, you can lock in that new hire your department needs and finally invest in an equipment upgrade. Participants are also encouraged to seize growth opportunities. So what happens when your customers pay the program back? We’re proud to say 100% of that money goes towards helping more businesses like yours.
What Are The Benefits For SMBs?
- First, no more waiting! SMBs receive payment immediately instead of waiting 30, 60, 90, or 120 days.
- SMBs instantly gain more time and capital, resources they can use towards running their business.
- With new funds, companies can seize growth opportunities that they would otherwise pass up.
- SMBs get the money they need when they need it, giving them control over their cash flow.
Which Businesses Can Participate?
The Facebook Fast Track program aims to help tens of thousands of small, diverse-owned businesses in the US. Specifically, these are for-profit companies that are certified as majority-owned, operated, and controlled by racial or ethnic minorities, women, US military veterans, LGBTQ+ people, or individuals with disabilities. In addition, companies must be certified by an approved partner organization. These partners include some of the leading business development and advocacy organizations supporting diverse entrepreneurs and communities.
Approved Partner Organizations:
- National Minority Supplier Development Council (NMSDC)
- Women’s Business Enterprise National Council (WBENC)
- National Veterans Business Development Council (NVBDC)
- National LGBT Chamber of Commerce (NGLCC)
- US Pan Asian American Chamber of Commerce (USPAACC)
- National Veteran Owned Business Association (NaVOBA)
Generally, companies must also have invoices with corporate or government customers that have an investment-grade rating.
How Much Is Facebook Funding?
Facebook has committed to funding up to $100 million in invoices on an ongoing basis.
How Is It Going So Far?
According to small businesses who have test-driven the pilot program— like The Wright Stuff Chics, Quester, Yardstick Management, SupplyHive, and Veear Projects—Facebook Invoice Fast Track is a game-changer. Not only has it allowed them to stay in the game, but the availability of capital on demand has accelerated their efforts to rebuild and grow.
For The Wright Stuff Chics co-founder Lisa Dunnigan, the program kept her team together, provided peace of mind, and allowed the company to continue selling its A+ educator swag. “When you’re an entrepreneur, and you have a passion for what you do, but yet you don’t have the working capital to do that, it ends up causing so many levels of stress,” said Dunnigan. “We’ve been able to keep our staff members on with this program, and we’ve also been able to really keep our doors open.”
Where Can I Learn More?
Check out the official Facebook Fast Track program page here.
Registration begins October 1.