IFG Network UK Limited

IFG Network UK Limited

July 12, 2011 09:00 ET

Asset-Based Finance=SME Growth

Factoring No Longer Seen as Last Resort for Business

BIRMINGHAM, WEST MIDLANDS--(Marketwire - July 12, 2011) -

Editors Note: There is a photo associated with this press release.

The Interface Financial Group (IFG), North American largest alternative funding source for small businesses, announced that the company offers support to small businesses that are struggling with raising capital to fund growth prior to economic recovery. IFG provides short-term financial resources including debtor factoring, invoice discounting and invoice factoring to companies in the UK, Ireland, United States, Canada, Australia, New Zealand, and Singapore.

About The Interface Financial Group (www.ifgnetwork.co.uk)

As the owner or proprietor of a SME business, if you were to mention at a networking event that you're considering asset-based finance, you probably would have been met with gasps and a sharp intake of breath from your peers. However, the way in which asset-based finance is viewed by businesses has changed in recent years, said Paul Barnsley, chief operating officer for The Interface Financial Group (IFG) "The use of Asset-based finance provides working capital solutions for businesses to optimise their cashflow and realise their growth ambitions," he said. "A lot of very well run companies, from small firms to multinationals, use it in a very strategic manner. It puts them firmly in control and it's a much more flexible vehicle than traditional lending."

The principle of asset-based finance is simple enough: using all the assets on a company's balance sheet – receivables and debtors, plant and machinery, stock inventory and property to generate working capital. In particular invoice finance, using either factoring or invoice discounting products are proving particularly attractive to many businesses.

"With invoice discounting, or factoring" said Paul. "The funder advances up to 90% of the value of an invoice when it's raised and hands over the remaining 10% minus charges when the customer settles. A "discount rate" applies to the transaction which the business can control".

Also with recent developments in the type of products available in factoring clients can choose how much they actually need, when they need it, and how long they want to commit to the product for.

Previously most factoring & invoice discounting agreements run for 12 months, but with The Interface Financial Group's "Spot Factoring" product, clients can have a use it as you need it service, with no contract or tie in. This makes the facility easy to use and keeps all clients in full control.

"Asset based finance is a great way of fuelling growth," said Paul. "And, on average, our clients only take around 45% of what's available to them, so it's quite wrong to suggest that asset based finance is the last resort of businesses in trouble."

"Businesses that take up asset-based finance become very strong advocates of the product and tend to use it long-term, it's also good to see the figures from The Asset Based Finance Association (ABFA) that indicate businesses who use factoring & invoice discounting are showing a healthy increase in turnover, compared to those who don't."

The Interface Financial Group (IFG) provides short-term financial resources including invoice factoring (invoice discounting). IFG launched the UK operation in 2010 following the success of its New Zealand, and Australia businesses which launched in 2004, and 2006. IFG's innovative products also includes spot factoring – the purchase of a single invoice or number of invoices. IFG does not require the whole debtor book.

The IFG Network is the funding arm of The Interface Financial Group providing capital and transactional support to IFG's international office network. IFG has grown to over (150) international offices in the UK, the United States, Canada, Ireland, Australia, New Zealand, and Singapore. Each IFG office is managed on a local level, providing immediate service to clients with local knowledge and experience. This makes IFG unique to all other Factoring Companies in the UK. The IFG team has substantial business experience and expertise in numerous diverse areas, including accounting, finance, law, marketing, banking, etc.

To view the photo associated with this press release, please visit the following link: http://www.marketwire.com/library/20110712-barnsley800.jpg

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