The Interface Financial Group

The Interface Financial Group

March 14, 2012 12:30 ET

Invoice Finance Is Essential for Recovery

But Number of Businesses Using Traditional Finance Falls

BIRMINGHAM, WEST MIDLANDS--(Marketwire - March 14, 2012) -

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

The Interface Financial Group (IFG), North America's 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, construction factoring and invoice factoring to companies in the UK, Ireland, United States, Canada, Australia, New Zealand, and Singapore.

The level of invoice finance advanced to British and Irish firms in 2011 rose by seven percent, however, net lending to firms fell 3.7 per cent in the same period.

Quarterly figures from the Asset Based Finance Association (ABFA) that will be released this week will show firms are increasingly turning to invoice finance, (invoice factoring or invoice discounting) to fund growth, amid a continuing struggle to access bank finance.

Firms that use invoice discounting or debt factoring have experienced a rise in sales of 13 per cent a year, according to ABFA and the total turnover for firms using invoice finance reached £238billion in 2011.

Paul Barnsley, chief operating officer for The Interface Financial Group (IFG) said "solutions like factoring and invoice discounting are essential to the regeneration and growth of the economy. As we see less availability of traditional overdrafts & loans, invoice finance is one of the few forms of funding available to firms. It covers all sectors including construction, and although the market is a little more limited, there are some specialist firms that offer specific construction factoring. Many businesses depend on this type of finance to fund both ongoing trading and to finance growth."

In contrast to this news, the FSB (the Federation of Small Businesses) have polled their members to find out that the number of small businesses that have used a bank overdraft or loan has fallen during the past two years.

The survey found that only 35% used an overdraft in 2011, 11% a secured bank loan and 7% an unsecured bank loan. These figures show drops of -8%, -3% and -4% respectively since 2009. In addition, the survey also found that 33% of respondents had used their own savings or inheritance to fund their business.

Paul added "these figures show that around a third of businesses are refused credit, and this could be reflected in the fact that newer businesses are using more of their own money to fund their business rather than turning to the banks for help, however what we need to see is better promotion of the alternatives available, especially all forms of invoice finance which as proved by the ABFA figures is a viable alternative to traditional lending, which is readily available through a range of providers."

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 associated with this press release, please visit the following link: http://www.marketwire.com/library/20120314-paul_barnsley_ifg_pic.jpg

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