IFG Network UK Limited

IFG Network UK Limited

March 31, 2011 11:30 ET

Billions Available for Invoice Finance

SME Businesses Can Benefit from Cash Available

BIRMINGHAM, WEST MIDLANDS--(Marketwire - March 31, 2011) -

Editors Note: There is a photo included with this 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 invoice discounting or invoice factoring to companies in the UK, Ireland, United States, Canada, Australia, New Zealand, and Singapore.

New figures released by the Asset Based Finance Association (ABFA) show that Invoice Finance funders have ample funds in place and are even actively choosing not to access all the finance available to them. The figures contrast sharply with wider bank lending which has continued to contract, with loans to UK businesses falling by 3.9% in the past year alone.

The total funding available to firms as asset based finance is £20.1bn, however total advances from ABFA members this quarter was £14.9bn. The utilisation rate of available supply is therefore 74.1%, with a further £5.2bn of finance available to them and approved for use. The total facilities agreed in Q4 2010, which could be regarded as an upper limit on the funding available if growth in turnover occurs, was £28.6bn.

This means that if sales and orders for companies using invoice finance continue to expand, as many firms are reporting, then a further £13.6bn of asset-based finance could be available to them.

These figures summarise the industry's growth and general credit conditions. The report also highlights that much of the funding available is offered to SMEs; over half of the businesses receiving asset based finance have a turnover below £1m and a further 34% are medium sized.

Paul Barnsley, chief operating officer for The Interface Financial Group (IFG) said: "These new figures show the importance of Invoice Finance to SME's, and why they should be looking at all options for funding given the challenges they are facing. These figures that show the majority of advances are going to SMEs and it is clear invoice finance is the ideal funding route for businesses which need to access more capital". This is positive news for small businesses, and those of us involved with invoice finance funding need to make sure that we educate the SME community to solutions we can offer them".

Debt Factoring and Invoice Financing are potential credit routes for to consider. These involve selling invoices to a third party, either a specialist provider or a bank. There are even specialist funders in this sector that will look favorably at businesses even though the traditional Banks might not consider them credit worthy. This can include sectors that the banks have issues with like contracting, however SME's who are in this sector should not despair, as some funders will offer facilities through specific construction factoring arrangements.

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

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 included with this release, please visit the following link: http://www.marketwire.com/library/20110331-barnsley800.jpg

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