Independent telecom finance options
These are tough times and with the mounting credit crunch and poorer liquidity, banks have tightened their lending norms. As it stood, conventional banks were against lending to small and mid scale ventures of telecom. This is because they did not fully understand how telecom operated and there was also a huge problem with delayed invoice receivable that could not completely be hedged upon.
Today, independent telecom financers are willing to take the plunge. It’s a gamble that has its own benefits. Telecom sector’s main problem lies in pile-up of revenue owing to delayed customer payment. A lending unit factors on this receivable and hence lends a part of money that the customers need to pay for their last operative bill.
This way, the independent telecom operators don’t fall in the trap of delayed revenue and get fund. They can also try institutional investors (provided they are big) and venture capitalists (in all cases) to set their business up for them.
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