Facebook is buying unpaid invoices as it moves into debt collection business

Facebook is buying up $100M of unpaid invoices from small businesses who will, in turn, pay back Facebook under terms the company says are affordable.

Why should we care?
Beyond the public relations value of buying up unpaid invoices from approximately 30,000 minority-owned businesses, the move appears to signal that the social media giant may be making forays into the debt collection business. The program, which is called the Facebook Invoice Fast Track program, allows businesses with outstanding invoices of a minimum of $1,000 to apply to get their debts paid by Facebook and join the debt repayment scheme. According to Facebook, businesses will pay back Facebook the outstanding amount plus a "one-time low fee" of 1% of the invoice value. The company says it’s targeting businesses that are "majority-owned, operated and controlled by racial or ethnic minorities, women, U.S. military veterans, LGBTQ+ people or individuals with disabilities." It’s unclear if business owners participating in the program will pay additional fees if debts aren’t repaid on time, or whether Facebook or a third party will be administering the debt-collection activities. As of November of this year, debt collectors will be allowed to contact users on social media to pursue unpaid debts.