Facebook To Pay Up To $100M In Unpaid Invoices For Small Businesses Owned By Women And Minorities
Facebook has announced a $100-million commitment to a program that supports small businesses owned by women and minorities by buying up their outstanding invoices.
This means that small businesses, who otherwise could have had to go months without getting paid by their customers, will be able to pay off their staff or bills.
The tech media giant’s ‘Invoice Fast Track program’ is its latest effort to build its relationship with small businesses, which use its social media platform for business and advertising.
Although the program isn’t necessarily new because it was first piloted last year – it’s gaining more momentum now because many businesses have faced serious hardship during the pandemic, with some forced to shut down or pause their business.
CNBC reports the goal of the program is to put “money in the hands of small businesses that would have otherwise had to wait weeks if not months to get paid by their customers.”
How does it work?
This program will be available to U.S. for-profit companies certified as majority-owned, operated, and controlled by racial or ethnic minorities, women, U.S. military veterans, LGBTQ+ people, or individuals with disabilities.
Companies must be certified by an approved partner organization, according to a statement on the website.
This includes the National Minority Supplier Development Council, Women’s Business Enterprise National Council, National LGBT Chamber of Commerce, the National Veterans Business Development Council, Disability: IN, and the U.S. Pan Asian American Chamber of Commerce.
What types of invoices are eligible?
Invoices must have a minimum value of $1,000 and be submitted to your customer for payment.
Generally, your customers must have an investment-grade rating. In most cases, participating companies must sell all eligible invoices they have with those customers. Other restrictions may apply, and Facebook will fund not all submitted invoices.
If accepted, Facebook will buy the invoice from the small business and pay them within days.