SOURCE: The Interface Financial Group, Inc. (IFG)

Factoring invoices

July 13, 2010 20:16 ET

Factoring Can Help Small and Medium-Sized Businesses Avoid Economic Crisis

BETHESDA, MD--(Marketwire - July 13, 2010) -  The Interface Financial Group (IFG), North America's largest alternative funding source for small businesses, announced a new series of educational videos on alternative financing solutions including factoring. Small to medium-sized businesses are using invoice factoring, or accounts receivable factoring, to obtain cash in order to avoid economic crisis since credit has become difficult to obtain.

In recent news for small businesses, Federal Reserve Chairman Ben Bernanke urged banks and regulators to seek ways to ensure that small businesses could get the credit they need to create jobs. Outstanding loans to small businesses have declined to less than $670 billion in Q1 of 2010 from about $710 billion in Q2 of 2008. Making credit accessible to sound small businesses is crucial to economic recovery, and some fear that not enough is being done to ensure that loans can be obtained by deserving, sound small businesses that depend on access to credit.

Long thought of as the key to unemployment, small business unemployment is still high, even as the jobless rate edged down to 9.5 percent in June from 9.7 percent in May. The Federal government began a fact-finding mission in February of 2010 to identify how to improve credit access for small firms. Small businesses account for about 60 percent of job creation.

"The economic downturn has been more than challenging for some business owners, who need cash in order to sustain and grow to hire and pay employees, purchase equipment and supplies, and pay their bills," said Chief Executive Officer George Shapiro, The Interface Financial Group, Inc. "Our goal is to educate those businesses that can benefit from factoring, because when outstanding invoices stack up factoring is one tactic that many companies have discovered can help them to stay in business and weather the economic storm."

Factoring enables companies to get short-term working capital and improve cash flow and grow their businesses. Since most companies don't get paid immediately for delivered products or services, factoring benefits businesses that do not get paid for 30, 60 or 90 days by advancing up to 90 percent against the company's invoices. A factoring company like The Interface Financial Group (IFG) purchases selected invoices at a discount. Factoring companies first typically look at the creditworthiness of the client's customers, and they do not expect to buy 100 percent of a company's receivables, so there are no minimum or maximum sales volume requirements.

These facts are all that much more reason for small businesses to seriously think about invoice factoring. Companies like The Interface Financial Group (IFG) have long been providing financial resources such as factoring to businesses in need, whether it is their entire accounts receivables factoring or single invoice factoring, also known as spot factoring, when cash is needed during a time of stress.

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 and the United Kingdom, and offers cross-border transaction facilities between the U.S. and Canada. With more than 140 offices across North America and over 35 years of experience, IFG provides innovative invoice factoring 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

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

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