Facebook Provides "affordable, immediate cash" for Small Businesses

Facebook has unveiled a program ​allowing women and minority-owned small businesses get paid faster.

The Facebook Invoice Fast Track program purchases outstanding invoices from ​small companies and pays them in a few days. The idea is to free up operating cash for the business owners​ rather than having them wait until the invoice is paid​. Facebook then collects on the ​debt​​.

"Get paid faster," the program's website says. "Receive payment immediately instead of waiting 30, 60, 90 or 120 days​.​"

Facebook has committed $100 million to the program and takes a 1% cut of every invoice purchased.

While the program may be well intentioned, ​the social media giant ​also ​has ​its own interests to promote and protect—small businesses accounted for nearly 75% of Facebook's revenue in 2020​,​ according to Deutsche Bank.

The Invoice Fast Track Program will start accepting applications from businesses on October 1. Invoices must be at least $1,000 for eligibility. According to Facebook's website, the program is available to businesses that are "certified as majority-owned, operated and controlled by racial or ethnic minorities, women, U.S. military veterans, LGBTQ+, ...or individuals with disabilities. Companies must be certified by an approved partner organization."