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."