All businesses need outside funding to grow effectively, and telecommunications are no exception.
The telecommunications industry has become an integral part of the economy in the United States. Encompassing cell phone companies, all types of broadcasting, and wireless internet services, the industry is quite diverse.
The telecommunications industry is also quite flexible, as arising technologies have continually changed what’s possible and what’s expected. The Federal Communications Commission (FCC) has struggled to keep up with all of the new technology, industries, and companies. One of the most significant portions of the telecommunications industry is broadband or wireless.
The broadband infrastructure has expanded outside of big cities, but broadband access is still not available to everyone in the country. Some parts of rural America—not to mention rural areas in other countries—do not have access to broadband internet connection. To level the playing field and provide universal access, many broadband projects and broadband initiatives have risen to provide rural broadband funding.
Across the board, telecommunications companies need capital to improve services and expand their market. What are the funding options for telecommunications and broadband companies?
Wireless Broadband Financing Options
Most finance programs are not favorable to companies who need them. Either the deal doesn’t provide enough capital, or they require relinquishing control and/or equity.
Venture Capital: Compared with other means of raising money, you can obtain significant amounts of capital from venture capitalists. This is particularly helpful for a telecommunications company, where almost all of your income is based on accounts receivable.
While the capital does help your company grow, it comes with plenty of stipulations. An investment from venture capitalists or a private equity firm requires you to give up some control or equity in your company. Losing control or equity in your own company should not be the price of obtaining capital.
Angel Investors: Angel investors usually cannot provide the same quantity of money as venture capitalists. However, the best benefit they offer is in addition to the capital: coaching. Most angel investors already have significant business experience in your industry.
Another benefit is that most angel investors do not require you to repay them. However, the same downside that we see with venture capital afflicts angel investors: they require some control.
Bank Loans: A telecommunications company could obtain a bank loan as long as they have good credit. However, for a young or small company that either doesn’t have excellent credit or has not proven itself profitable, bank loans are nearly impossible to obtain.
There are other ways to raise capital for your company. However, these methods also involve negatives that usually outweigh the positives.
So, what other options are there? What if a telecommunications company needs capital but doesn’t want an unfavorable loan program that requires giving up control or equity?
RevTek Invests in Telecommunications Companies
At RevTek, we care about the long-term success of your company, which is why we do not require any control or take equity away from you. Losing control and equity should not be a requirement to get the growth capital you need.
We offer telecommunications, broadband and wireless internet service (WISP) financing that can work well with your company and business model. Our experienced team understands industry trends and what enables a business to succeed. You can receive our capital with a strong business model, a recurring revenue of at least $25,000 a month, and good cash flow.
In our revenue-based financing system, we provide capital in exchange for a percentage of your future revenue. We create a repayment system based on your monthly recurring revenue stream. By focusing on future revenue, we avoid taking any equity or control from you.
Our process and terms are simple, and you can obtain as much as $2 million in growth capital. You can use the capital to meet any of your business’ needs and improve your sales and marketing, expand your broadband network or broadband development, acquire new equipment through purchase or equipment leasing, or develop new services. Contact us today.