Accounts Receivable Management Featured Article

Rockwell Funding Focuses on Receivables Factoring for Telecom Companies

January 28, 2013

Funding is hard for telecom companies to come by in today’s credit crunch. That challenge is why companies like Rockwell Funding focus on helping telecoms with accounts receivable management.

Telecoms can have trouble landing traditional financing because their business model is different from many other types of businesses. According to a whitepaper by accounts receivable management company Thermocredit, launching an independent telecom requires a significant upfront investment. Then, telecoms have to wait between six and 12 weeks to collect on their invoiced receivables.

Even when cash starts to come in, infrastructure investments take a long time to pay for themselves. While telecoms are paying off equipment, the equipment is simultaneously depreciating. Additionally, telecoms lose their reputation for reliability if they don’t have 99 percent uptime. Needless to say, customers expect as much reliability for their telecommunications as they do for utility items like water and electricity.

Unfortunately, finding venture capital also presents a major challenge. High-profile busts for telecom venture capitalists, including notorious companies such as WorldCom, have caused investors to back off of providing funding for telecom companies.

For this reason, many independent telecoms turn to companies like Rockwell Funding to collect on their receivables. AR collection delivers cash flow, money for investments and the ability to catch trade discounts in real time. AR management is also an ideal way for younger companies like independent telecoms to get money when lenders won’t open lines of credit.

With today’s technology and consultations from companies like Rockwell and Thermocredit, telecom companies can redesign their billing implementation while at the same time collect their receivables. They can also learn to manage both prepaid and postpaid account balances to line up their cash flow with their needs as they expand.

Rockwell Funding will be attending TMC’s ITEXPO (News - Alert) Miami 2013 in Miami Beach from January 29 to February 1. While at the conference, they will be focusing on their business niche: helping telecoms get funding from receivables factoring.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, beginning Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO. Follow us on Twitter.

Edited by Allison Boccamazzo

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