The Interface Financial Group (IFG)

The Interface Financial Group (IFG)

June 19, 2012 13:32 ET

Is Osborne's Plan for Business Doomed?

New Survey Shows Banks have Renewed Their Lending Squeeze

BIRMINGHAM, WEST MIDLANDS--(Marketwire - June 19, 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.

Just as George Osborne announces a new plan to allow the UK's Banks to release up to £80bn of funds to business, a new survey from the FSB (Federation of Small Business) shows that the squeeze on lending from the Banks is not easing and is hampering their growth and the prospect of creating more jobs.

The survey from the FSB highlighted that four in 10 small firms were refused finance from high street banks as confidence dipped in the second quarter. Despite this credit squeeze, more than 50% of respondents said they still plan to grow their businesses during the coming 12 months. But the proportion of firms looking to grow rapidly shrank.

In contrast new figures from the Asset Based Finance Association (ABFA) show continuing positive signs for the invoice finance industry utilising either invoice factoring or invoice discounting products, where year on year funding has increased by 4%.

This year-on-year growth contrasts noticeably with the rise in available funds, which, at 8%, is double the rise in advances. Total funding available in Q1 2012 stood at £22.9bn, meaning there is a further £7.5bn of finance which companies could be accessing.

The total number of clients using factoring or invoice discounting also rose noticeably in Q1, underlying the sector's growth potential, with a net total of 493 new clients coming on board, pushing total client numbers up to 41,989.

Paul Barnsley, chief operating officer for The Interface Financial Group (IFG) said: "The new figures show a positive picture, with both total funding and turnover from companies using invoice finance rising again. It is also good to see the client numbers increasing. We do need to continue the push for awareness and change some of the reputational image of factoring and invoice discounting, as this may be holding some businesses back from looking at invoice finance as a funding option. The figures also show a conservative approach to accessing funds from firms, with their appetite for new investment and maximising growth potential being muted. This could mean that businesses may be missing opportunities that access to capital could help them with, so it's important that we keep close to businesses to make sure that this does not happen."

So is Osborne's plan doomed? Well, only time will tell & let's hope that the stimulus to get UK Plc. moving is successful for us all.

About The Interface Financial Group (

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.

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