IFG Network UK Limited

IFG Network UK Limited

April 28, 2011 13:03 ET

Lending Lags as the UK Economy Grows by 0.5% in Q1

More Opportunity for Invoice Discounting & Alternative Funders

BIRMINGHAM, WEST MIDLANDS--(Marketwire - April 28, 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.

Official figures have been released showing that the UK economy grew by 0.5% in the first three months of the year, reducing the risk of a double-dip recession.

Businesses & Government welcomed the return to growth, which followed a contraction of 0.5% at the end of 2010, but the economy is still flat and the recovery has not yet materialised.

The ONS (Office for National Statistics) said that manufacturing and services sectors had performed well, but construction output had fallen sharply.

However separate figures released on Wednesday from the British Bankers' Association (BBA) showed that total net lending to companies fell in March by £4.7bn compared with a year ago, a slightly bigger fall than in February.

The BBA said in a statement that weak trading activity meant businesses were less likely to borrow money for expansion, and most were trying to pay down debts.

Paul Barnsley, chief operating officer for The Interface Financial Group (IFG) said: This low rate of growth could lessen the chance of an interest rate rise, which is expected around August to combat inflation, but it's still hard to see how the SME business community is going to fair over the remainder of 2011. "The main stumbling block is still the lack of Bank Lending, and although there is pressure from central government on the Banks to increase their lending to businesses, this is still to happen"

"This is why the alternative funding organisations offering invoice discounting and factoring are seeing increased activity in applications and funding requests, as their flexible approach to funding is proving favourable with SME's. There is still room for more businesses to become aware of debt factoring & invoice discounting as credible means of raising working capital, and the industry is trying hard to raise its public profile to do this".

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/20110428-ifgphoto8.jpg

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