September 26, 2012
Insufficient capital is the #2 reason that small businesses fail, according to the US Small Business Administration. For many entrepreneurs and their budding startups, one of the biggest hurdles is funding. While angel funds, venture capital firms, banks, and government grants are seen as common, go-to financial resources, here's a new option available for startups: FastPay.
FastPay is a commercial finance company that provides capital to tech businesses, content publishers, ad-tech businesses, and creative studios. By accelerating payments, firms can maintain a steady cashflow in order to grow their operations. Jed Simon, CEO of FastPay, explains that brand advertisers spend more money online, but it takes approximately 90-120 days to pay their invoices. Instead of raising a round of VC funding, companies can borrow money directly from them. Applying is easy and funding is much quicker than applying for loans.
Nestled in the center of Beverly Hills, FastPay raised $27 million to date. Their available credit lines range from $100,000 to $10+ million dollars, which are supported by their clients’ accounts receivable.
“We really enjoy working with creative, driven entrepreneurs over B2C businesses [since] it takes money to make money,” says Simon. While conservative banks might see startups as a riskier investment, Simon explains that FastPay understands the tech ecosystem.
Firms can feel the difference working with FastPay. “We feel very fortunate to have a partner that understands our business and is willing to underwrite our growth,” said David Segura, CEO of Giant Media, in an online testimonial.
FastPay was a showcased startup at our Tech Cocktail Los Angeles mixer in August.
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