FastPay raises another $10M, crosses $100M in digital receivable lending
Michael Carney | Pando Daily | February 20, 2013
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Building a business around online advertising is hard enough without having to combat the cashflow issues created by lengthy payment terms. A survey by industry regulatory body IAB indicates that nearly 80 percent of digital advertising invoices take 60 days or longer to pay. Yes it’s great that Pepsi and Ford want to advertise on your site, or purchase inventory through your ad exchange, but the fact that they want to pay you “net-90” – or after 90 days – could seriously hamper your growth.
FastPay, a technology-driven “anti-bank” in founder and CEO Jed Simon’s words, is helping combat these growth impediments by providing commercial loans against digital advertising receivables – aka factoring. Since launching in 2010, the company has lent out more than $100 million of this “working capital gap financing” to over 100 publishers, ad-tech companies, and other digital media businesses. Most impressively, it’s managed to do so without a single default to date.
