Facebook this week unveiled a $ 100 million pledge to a program that supports small businesses owned by women and minorities by buying their accounts. in suspended.
By purchasing invoices in suspended, Facebook Invoice Fast Track puts money in the hands of small businesses that could have waited weeks, if not months, to get paid by their customers, like factoring in companies in the financial sector.
The program is Facebook’s latest effort to build long-term relationships and loyalty among small businesses, many of which rely on the site. social network to place ads targeted to niche demographic groups who may be interested in their services.
Businesses can send payable invoices with as little as $ 1,000, and if accepted, Facebook will purchase the invoice from the small business and pay it within days, then customers will pay Facebook the invoices due under the same terms agreed with the small business.
For Facebook, which generated nearly $ 86 billion in revenue in 2020, waiting for payments is far less risky than it is for small businesses.
Facebook Vice President of Small Business Rich Rao said Facebook piloted a scaled-down version of the program in 2020 after hearing how the company’s suppliers were suffering from the coronavirus pandemic.
“We heard about the financial difficulties these vendors are facing and it was created very quickly and came up as an idea and presented it to the Facebook CFO, who welcomed it,” he added.
Now, Facebook is expanding in significantly the program and will purchase up to $ 100 million in invoices due. Rao estimates this will support nearly 30,000 small businesses.
And Facebook has set the date for the official launch of the program, that is, the submission of applications by companies interested in the issue in the United States, on October 1st.
Read More About: Business News