Kompass Funding partners with growth-oriented companies to bridge their financial gaps. For startups and smaller companies in the telecommunications industry, taking on more jobs, hiring additional crews and adding equipment is contingent on healthy cash flow. Unfortunately, vendors are often waiting 30, 60, 90 or more days to get paid.
“We noticed with the 5G buildout, there has been a serious cash crunch, because payment terms are extraordinarily long,” Ben Hagenkord, Senior Account Executive, Kompass Funding, told Inside Towers.
Kompass 24, an invoice purchasing service from Kompass Funding, expedites the payment process. Instead of waiting for customers to pay, a company can quickly have its outstanding invoices purchased by Kompass Funding.
“We found that this could be a solution to help subcontractors and general contractors improve their cash flows to help complete the work that’s being demanded right now,” Hagenkord said.
It takes 24 hours from engaging, underwriting and executing, to funding, and a company will get paid for work it has completed. Those funds will then be readily available to be allocated towards other needs to grow the business. The funding instrument was inspired by conversations in the contractor world regarding long invoice payment times and cash flow issues.
“We buy invoices for completed work, and then we get paid back from whoever is paying you,” Hagenkord said.
Kompass 24 is one of several financing options available from Kompass Funding. Another offering, Kompass Accelerate, Kompass Funding streamlines and optimizes accounts payables. The company also provides Kompass Bridge, a short-term loan option and Kompass Access, a structured equity program.
Sometimes companies will use more than one product to serve their needs. For instance, Kompass Funding’s clients can complement their use of Kompass 24 with Kompass Bridge, which provides fast access to short-term funding.
“Our cash flow solutions are designed to get our clients to where they want to go. We work with each client to determine their unique needs,” Hagenkord said. “Kompass Bridge offers temporary financing to fill any financial gap until long-term or permanent financing is in place. It is a loan, while Kompass 24 is specifically for the facilitation of invoices.”
Kompass Funding is a subsidiary of Kompass Kapital, which is a private equity group with a diversified investment portfolio of passive and active investments across various industries and business sectors. That portfolio includes Colorado River Ranch, Dynamic Logistix, Founders Home Service Group, Kinikin, Kompass Kulinary, Moonshot Solutions, and NavMD.
To engage with Kompass Funding, call 913-728-0299 or email: [email protected]. For more information, visit: https://kompasskapitalfunding.com/.
By J. Sharpe Smith, Inside Towers Technology Editor
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