In a public announcement this week, the social media giant Facebook has said that it has dedicated a $100 million commitment to a program that supports small businesses owned by minorities and women. The company used cash to buy up
their outstanding invoices.
By doing that, the Facebook Invoice Fast Track program provides small businesses with money. Therefore, these small businesses wouldn’t have to wait for months to get paid by their customers.
The move from Facebook is the company’s latest effort to establish long-term loyalty among small businesses which rely heavily on the social network giant to target customers and niche demographics.
How it works
According to the company’s statement, small businesses can submit an outstanding invoice of a minimum of $1,000. Once accepted, the social network would then buy the invoice from the small business and pays them within days. Consequently, the relationship becomes between Facebook and the client directly. Facebook has generated over $86 billion in revenue last year. Therefore, waiting for payments isn’t a big deal it.