Birch Communications on Monday officially introduced its Birch Payment Plus program, which is designed to provide funding for its startup company customers or small to medium sized businesses (SMBs) that are struggling to get a necessary line of credit.
Vincent Oddo, Birch's president and CEO, said the new program "helps new businesses that have yet to establish a credit history as well as businesses with past credit problems obtain the required communications and managed services they need and at the same time it will help them start building their credit history."
The program is being offered to potential customers that don't meet traditional Birch credit requirements after it conducts a credit check.
Regardless of whether the customer has not yet established a "track record" or has had problems with past payment, the CLEC said business customers can receive the service after making a small upfront payment, and then an automated monthly payment process is established using a credit card.
If the business is able to maintain a good payment history for six months, it will achieve regular account status with Birch. Also, potential customers don't have to meet a minimum credit score to enroll in the Payment Plus program.
This is only one piece of Birch's financing strategy for its customer base. Last March, the CLEC launched a specially negotiated pricing on debit and credit card transaction processing through an agreement with Bank of America, one of its key investors.
- see the release
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