Facebook this week made a $100 million commitment to a program that supports small businesses owned by women and minorities by buying up their outstanding bills.
According to Arabiya Net, by buying outstanding invoices, Facebook Invoice Fast Track puts money in the hands of small businesses that could have waited weeks, if not months. To get money from their clients, which is similar to factoring offered by companies in the financial sector.
The program is Facebook's latest effort to build relationships and long-term loyalty among small businesses, many of which rely on the social networking site to place ads targeting niche demographics that may be Interested in her services.
Businesses can submit invoices payable with a minimum of $1,000, and if accepted, Facebook will buy the invoice from the small business and pay it within days, then customers will pay Facebook the invoices due On the same terms they 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's vice president for small business, Rich Rao, said Facebook piloted a smaller version of the program in 2020 after hearing how the company's suppliers were suffering in the wake of the coronavirus pandemic. .
He added, "We've heard about the financial hardships these suppliers are facing, and it was set up very quickly and was pitched as an idea and presented to Facebook's CFO, who welcomed it." /p>
Now Facebook is expanding the program significantly and will buy up to $100 million in bills due. Rao estimates that this will support approximately 30,000 small businesses.
Facebook has set the date for the official launch of the program, or the submission of applications by interested companies in the United States, for October 1.
