FastPay to Speed Funding and Invoice Payment
FastPay, a new tech-enabled finance platform servicing ad-tech businesses, launched today with $25 million already funded to dozens of digital media businesses. FastPay "empowers early and mid-stage companies in this $29B industry to fund their growth in an efficient, cost effective and equity-preserving manner. "
And that's not all. It's about getting paid faster once your business is up and running.
eMarketer estimates the size of the digital ecosystem will grow to $100B by 2015 and the IAB says nearly 80 percent of invoices now take from 60 to 90 days or more to pay. We can personally attest to this and it's not fun so we're a big supporter of any entity that claims it can get us out money faster and more efficiently.
FastPay recognizes even the most successful content publishers, exchanges, DSPs, social media marketers and digital creative studios have a tough time managing cash flow in order to continue doing business. So FastPay has developed an automated, streamlined solution that aims to accelerate payment cycles.
Of the offering FastPay Founder and CEO Jed Simon said, "While innovative financing options have historically taken root across various industries, we saw an enormous void within the digital media space. Until now, there was not one financing source that addressed the excessively long payment cycles most digital media companies face. We launched FastPay with the goal of creating a streamlined solution that would provide critical liquidity to this rapidly growing industry."
FastPay says commercial banks don't understand the Internet ecosystem and have shown a reluctance to provide credit to the sector. Digital businesses are often left with no other financing option other than raising equity, which can be costly, dilutive and time consuming.
So over the past 18 months, FastPay has developed its platform and systems to allow these businesses to compete and grow. FastPay offers credit lines from $100,000 to $3 million and more. FastPay says qualifting companies can receive capital in as little as one business day. managing their cash flow and most importantly, boosting revenue.