SOURCE: The Interface Financial Group

The Interface Financial Group

February 08, 2012 12:08 ET

Construction Factoring Supports Recovery as Private Construction Accelerates

The Bureau of Labor Reports the Construction Industry's Unemployment Rate Increased in January to 17.7%, From 16 Percent in December 2011

BETHESDA, MD--(Marketwire - Feb 8, 2012) - According to the Interface Financial Group (IFG), as the private construction sector recovers economically; construction factoring is an ideal alternative funding solution to support the industry and its growth. The latest statistics from the Bureau of Labor Statistics (BLS) indicates that the construction industry's unemployment rate increased in January to 17.7 percent, from 16 percent in December 2011. January was also the 16th-consecutive month in which the construction industry's jobless rate was lower than its prior year figure.

Although these figures are lower than January 2011's statistic of 22.5 percent, the BLS also reported that the February 3rd monthly employment update is showing that construction gained 21,000 jobs in January. Along with the 31,000 jobs that were added in December 2011, the industry's total employment rate is now at its highest level in two years. The report indicates that nearly all the construction sectors posted gains in jobs last month. What's more, architectural and engineering services added 6,900 jobs last month.

"Construction's rates typically get worse in the winter when building volume drops, so this report is truly a good indication of growth in this sector," said George Shapiro, IFG's chairman and chief executive officer. Yet while these companies are adding jobs and getting new contracts, we have seen how construction factoring provides the much needed alternative funding required to sustain growth -- maintaining payroll and production materials for future contracts."

The construction sector benefits tremendously from invoice factoring because sub-contractors are no longer required to wait for payment before starting on the next phase of a project, or begin construction on a new project.

When factoring, a sub-contractor or construction firm can realize a very fast turnaround on accounts receivable due for completed stages of a construction project -- even 24 hours. Unlike a loan, factoring is the purchase of financial assets, or accounts receivables. There are no co-signers required or upfront fees. IFG has no minimum sales volume requirements, and professional fees are competitive.

One of the only factoring companies in the United States offering Construction Factoring services, IFG's private label solutions also include 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.

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.

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 (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.

Contact Information

  • Kristin Gabriel
    MarCom New Media
    T: 323.650.2838
    E: Email Contact

    Headquarters: The Interface Financial Group
    7910 Woodmont Avenue, Suite 1430
    Bethesda, MD 20154
    T: Toll Free: USA - 877.210.9748
    T: Toll Free: Canada - 877.340.6893