Working with digital media receivables? It helps to know a factoring company that specializes in online deliverables. Meet Jed Simon, CEO of FastPay, in this recent Factoring Investor interview.
What receivables will your factoring company consider funding?
Jed Simon, CEO: FastPay primarily funds digital media receivables. We’ll advance on invoices signifying completed work including, but not limited to, ad campaigns, creative campaigns and delivered impressions.
How did you get your start in the business?
While I was responsible for digital media at DreamWorks, I recognized a universal pain point in the digital media industry – many big brands and agencies have onerous payment cycles (Net 90+) that hamper the growth of smaller digital media companies. FastPay was incubated as a unique solution these companies could use to liquify their receivables, allowing them to use the cash on hand to grow their businesses quicker without having to go through traditional methods such as expensive debt from banks or highly dilutive equity from investors.
What unique benefits does your receivable funding company provide?
We’re all about flexibility, ease-of-use, and transparency. We have a quick online application – qualified clients can be approved and funded in a matter of days. Our solution is 100% non-dilutive requiring no warrants, covenants, personal guarantees nor equity. We also have the advantage of knowing how digital media companies do business. Banks might not understand how these services make money, but we do.
Can you please highlight a business you were able to help recently with your factoring services?
We have worked with several small startups from their inception and watched them flourish into much larger enterprises, employing 50+ people and generating $10mil+ in revenue. By using FastPay in lieu of outside capital these entrepreneurs were able to retain 100% ownership as well!
Will your company work with brokers or consultants and how do you handle the commission structure?
Yes, FastPay is currently setting up partnerships where referrers receive a percentage of revenue for approved new clients. For details check out http://gofastpay.com/refer
What do you consider the best methods for finding leads?
Our New Business team keeps up with the latest news and trends in the industry and assesses which influencers and company founders to connect with. Also, the value from word of mouth cannot be underestimated. We work hard to make sure that prospects, clients, and former clients all have positive experiences with us, and we see the results in our growing portfolio.
What advice would you give to new professionals just starting out in the industry?
My best advice would be to try to develop a sector expertise. Understanding the risk factors inherent in any given industry is quite valuable and can be a great transferrable skill-set.
What is the most common business mistake you see people make?
Concentration. Too many times we have seen businesses put all of their eggs in one basket, thinking there would not be issues, only to have that strategy be their ruin. The key is diversification and working with lots of companies to minimize risk. We encourage all of our clients to work with as many companies as possible because it not only builds their value, but it also protects them if a relationship goes south in the future.
Given the current economy, have you made any changes in the way you transact business?
I think we are in the same boat as other smart companies in this economy in that we take a very cautious approach. We absolutely are ready to seize opportunities when they present themselves, but we like to make sure that we have put in the necessary work to be able to make educated decisions. Risk management is not the most fun part about running a company, but it is essential to building a strong and profitable business.
Where can people contact FastPay to obtain more information?
We can be reached at 310-651-9200 or via email at contact@gofastpay.com. We’re located in the heart of Beverly Hills, California and on the web at www.gofastpay.com
Is there anything else you would like to share with our readers?
If you are an exciting company with innovative ideas and looking to grow, come check us out! We pride ourselves on understanding the businesses of our clients better than any other financial options, and we are always eager to help.
probably the easiest broker agreement Ive ever signed.