FastPay to Cushion Blow of Slow Invoice Payment
FastPay, a finance platform that hopes to alleviate headaches caused by lengthy payment cycles within the digital marketing space has secured an additional $25 million in funding. This funding will be used to expand FastPay's sales and marketing and provide its clients with greater access to growth capital.
FastPay aims to solve a big problem in the marketing and advertising space: lengthy and often growth-prohibitive payment cycles. An IAB survey indicated that nearly 80 percent of invoices take 60 days or longer to pay. To solve this working capital gap, FastPay offers credit lines up to $5 million to companies across the digital landscape, including content publishers, social media marketers, digital creative studios and ad-tech businesses such as exchanges, demand side platforms and agency trading desks.
"While innovative financing options have historically taken root across various industries, we saw an enormous void within the digital media space," said Jed Simon, founder and CEO of FastPay. "Until now, there was not a single financing source that addressed the excessively long payment cycles that most digital media businesses face. We launched FastPay with the goal of creating a streamlined solution that would provide critical liquidity to this rapidly growing industry."
"FastPay has been a lifesaver for us, literally. We feel very fortunate to have a partner that understands our business and is willing to underwrite and accelerate our growth." said David Segura, CEO and founder of Giant Media. "Our entire business revolves around executing campaigns on behalf of big brands which have extended payment cycles. FastPay has enabled us to take on more business and grow our team without worrying about cash flow, giving us the freedom and flexibility to focus on top line growth."
Hmm. Sounds good to us.