TCI Business Capital

By Alyssa Stahr

South Burnsville, MN-based TCI Business Capital specializes in providing cash flow solutions to small- to mid-sized companies throughout the United States and Canada. As a finance provider, TCI’s accounts receivable factoring provides a steady cash flow to companies that need working capital but are not able to obtain sufficient financing from their bank.

The company’s website states that the easy-to-setup factoring lines solve this problem “by allowing our customers to access the capital that is tied up in their accounts receivables.” With simple and straightforward underwriting guidelines, most customers can receive a written approval in fewer than 30 minutes.

Bill Fuesz, senior vice president of sales and marketing said that, if for example, you’re a company providing services for wireless infrastructure. Or perhaps you’re involved in construction or one of your clients is doing antenna upgrades for one of the major wireless carriers.

“A number of these companies typically will take 45 days or more to pay the invoices, and our customers have expenses that they need to pay for, such as materials,” Fuesz said. “They may be paying for additional services; they may be paying for labor; they have all these capital expenses. They’re waiting for—whether it’s the carrier or another party—to pay, but they’re still incurring these expenses.” 

TCI purchases the invoice that the customer would send and then pays between 90 and 95 percent of the value of that invoice immediately. When TCI gets paid by the company for which its client did business, then it pays the client the remainder minus a factoring fee. It gives clients the cash flow that they need to smoothly continue operations.

Fuesz said that TCI has grown “quite a bit in the telco world,” expanding its footprint especially in wireless. Having that expertise in telecom and working with turf benders gives TCI an advantage.

“As you look at the state of wireless overall, one of the big issues that’s facing the wireless industry is QOS [quality of service] with voice over LTE,” he said. “A lot of that has to do with antennas, whether they’re on towers or if it’s a distributed antenna system.”

Fuesz said that the company understands that carriers have slowed down some of their spending because of spectrum allocation auctions and more. There is still a demand, however, to improve QOS, and he’s seeing customers getting more involved in DAS, which is leading to optimism relative to clients and their needs.

Mark Zitzewitz COO of TCI, anticipates growth in the market “in large part because a lot of these payers are extending their pay terms. We’ve seen a lot of them go to 60 days, which puts a lot of stress on service providers to manage their cash flow and continue to make their payroll. We’re hoping we can as much as double our portfolio in telecom in the second half of this year.”

For more information, visit http://www.tcicapital.com/.