The Interface Financial Group

The Interface Financial Group

August 30, 2012 12:00 ET

One in Three SME's Unable to Get Funding

New Survey Shows Businesses Cannot Get Access to Cash for Growth

BIRMINGHAM, WEST MIDLANDS--(Marketwire - Aug. 30, 2012) -

Editors Note: There is a photo associated with this 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.

It's no surprise that the use of invoice finance has become a popular way for companies to access the working capital they need considering the difficulties many are facing getting credit from banks.

A new survey undertaken by a leading funder has shown that 32% of companies have been unable to secure any finance through traditional channels in the last year, and of those that could only 9% received the amount of funding they applied for.

The survey included 1,000 small and medium-sized businesses in the UK and found that 19% of those who've applied for funding over the last 12 months have been unable to raise enough capital to invest in their business.

Paul Barnsley, chief operating officer for The Interface Financial Group (IFG) said: "the findings of the research serve to highlight the gap that exists between the supply of funding and the demand from UK businesses. The Interface Financial Group's Spot Factoring facility is one of many solutions available to SME's and we are certainly seeing a marked increase in applications and funds being utilised. "The results are further proof that businesses desperately require greater access to finance and that to date, schemes introduced by the government to address the issue have failed to work," he remarked. We have seen a range of different funding schemes and initiatives introduced, such as Project Merlin and the National Loan Guarantee Scheme, however none have delivered real and lasting benefits to the small business community. The invoice finance option is one that once businesses are aware of how it works and the flexibility it offers can be put to good use."

Banks are not the sole source of credit for struggling or growing businesses and the promotion of alternative forms of financing, such as invoice finance, should be something that is pushed more to the forefront to business owners. There still seems to be a lack of awareness and acceptance that invoice finance through either Invoice Discounting or Factoring are sensible and attractive alternatives to other forms of finance and that the access to this type of funding is normally easier than traditional routes.

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.

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