SOURCE: The Interface Financial Group (IFG)
BETHESDA, MD--(Marketwire - Jun 15, 2012) - According to the Interface Financial Group (IFG), North America's largest alternative funding source for small to medium-sized enterprises, SMEs are now being driven by the baby boomer market. Companies that make machines and components for other manufacturers are experiencing an upswing that could be a sign of things to come for the broader economy, says Payne, a company that tracks lending to small businesses.
Boomers who are age 65 and older now exceed 35 million, and while January 2011 ushered in the first of approximately 77 million, those born from 1946 through 1964 and are growing, according to the 2010 U.S. Census Bureau data.
The SME sector is being driven by the estimated 50 million aging baby boomers that are requiring more medical care, such as products manufactured by medical device makers, due to the fact that this group requires more medical care. Manufacturers in this sector are expected to see continued growth and they're investing in expensive machinery that can cost millions of dollars.
In 2011, industrial and materials manufacturers had a 37 percent increase in big equipment purchases, according to PayNet, a company that tracks lending to small businesses. That compares to an average of 17 percent for all the industries PayNet follows.
There are also increases for manufacturers for the number of orders coming from oil and gas producers supplying energy to growing economies in countries such as China and India. Last, the aerospace industry is now getting more sales building fuel-efficient aircraft and engines which require special parts.
The company's spot factoring services provide small to medium-sized businesses with an innovative cash flow solution that complements the sector as it continues to recover economically. Invoice factoring is the funding choice for many small business seeking growth and expansion financing.
IFG Chairman and Chief Executive Officer George Shapiro said, "Business is slower than anticipated among the small business sector. But the good news is that some areas, like manufacturing, are improving and companies are now adding jobs and getting more orders."
Shapiro continued, "Small businesses are trying and adopting new strategies such as invoice factoring services for small business. One product offering in particular is known as spot factoring, or single invoice financing, which provides the much needed alternative funding that is required by a small business to purchase materials, and hire additional staff for sustained business growth."
Unlike a loan spot factoring is the purchase of one single invoice. For example, when using spot factoring for funds, a manufacturer can realize a fast turnaround on a single invoice due for the completed stages of a construction project -- even within 24 hours. Spot factoring requires no co-signers or fees upfront. IFG has no minimum sales volume requirements, and professional fees are competitive.
IFG does not expect to buy 100 percent of a company's receivables and professional rates are competitive. The program allows choices of invoices to be factored, enabling customers to retain most of their money, to spend the minimum fees, plus guarantee adequate cash flow.
IFG's private label solutions include: Spot Factoring, or single invoice factoring services, Export Factoring, providing services for companies who export from the United States and Canada; P.O. Funding to finance purchase orders when a company receives a purchase order and needs to purchase supplies to fulfill the order; and Inventory Financing, a solution promoting a company's growth by funding them when they must expand and purchase inventory.
About The Interface Financial Group (www.ifgnetwork.com)
The Interface Financial Group (IFG) is North America's largest alternative funding source for small business, providing short-term financial resources, including invoice factoring services (invoice discounting). The company serves clients in more than 30 industries in the United States, Canada, Singapore, Australia, New Zealand, UK and Ireland, and offers cross-border transaction facilities. With more than 140 offices across North America and over 39 years of experience, IFG provides innovative accounts receivable factoring services and solutions by offering short-term working capital to growing businesses. Single invoice factoring, or spot factoring, is an extremely fast way to turn receivables into cash.
IFG was founded in 1972 to provide short-term working capital to help small to medium-sized businesses grow. The IFG organization operates on a local level, providing clients with local knowledge and experience and business expertise in numerous diverse areas in addition to accounts receivable factoring, including accounting, finance, law, marketing and banking.