Invoice Factoring Company

New Measures from Funders Required to Help SME's

BIRMINGHAM, WEST MIDLANDS--(Marketwire - July 28, 2011) -

Editors Note: There is a photo associated with this press 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 debtor factoring , invoice discounting and invoice factoring to companies in the UK, Ireland, United States, Canada, Australia, New Zealand, and Singapore.

The Forum of Private Business is calling for measures to restore trust in banks and help alternative funding platforms such as factoring & invoice discounting compete in finance markets dominated by mainstream lenders, following figures suggesting confidence and trust is in decline.

The release of the first quarterly finance monitor commissioned by the British Bankers' Association's Business Finance taskforce has pointed out that approximately 670,000 firms (15%) – needed funding during the past year but did not apply for it and 18% believe they will need finance in the next three months but feel they will be unable to apply unless economic conditions improve markedly.

Paul Barnsley, chief operating officer for The Interface Financial Group (IFG) said "The report is useful and helps us to see a clearer picture of the situation between businesses and banks but the facts remain that small businesses are clearly experiencing a crisis of confidence in the UK's banking system."

What we need is a platform for the alternative funders to compete in the finance markets dominated by the Banks. SME's who take the time to research & embrace invoice discounting or factoring find out how beneficial these alternative funding routes are, and how much more flexible they are compared to Bank borrowing."

The FPB said that while the current economic climate is seen by respondents as the main barrier to borrowing, it is followed by discouragement – either direct discouragement following an informal inquiry at a bank, or discouragement of a more indirect kind because a refusal had been expected.

Just 51% of SMEs are presently using external finance – significantly fewer than in 2007 (69%) and 2004 (81%), according to Cambridge University's Centre for Business Research. For larger SMEs employing 50-249 staff the figure is 81%.

Do You Know if Invoice Factoring is For You?

For a start-up company, invoice factoring may be the answer to economic woes caused by a challenging time in bank financing. today there are more businesses turning to this type of funding. Why? Because these days it is often the only way they can get cash. Start-up companies without no proven track record or debt that may make them unattractive to banks when it comes to getting a loan. But factoring can get you cash in hand immediately. Today, factoring is experiencing a resurgence in popularity as many small businesses are still struggling from the recent economic finanical crisis.

Invoice factoring is a practice that enables a small business to sell its accounts receivable invoices to a third party at a discount, which garners them immediate cash so they can finance their small business. This method helps them cover short-term cash needs during periods in which these needs exceed cash flow.

Keep in mind, however, invoice factoring is not a bank loan, so the business' credit is never up for inspection but rather the debtor's (i.e., the party named on the invoice) and there's nothing to repay. This method of finance was once quite popular in early merchant banking activities.

Here are a few of the advantages to factoring:

Invoice factoring maximizes cash that is available to you, often providing more cash than a traditional bank's lines of credit. There is also no line of credit amount because you are selling your existing invoices.

Cash flow becomes more predictable because in addition to speeding up the process by which your accounts receivable invoices are paid, invoice factoring can make managing your assets easier. Payments from factoring services are more predictable than when customers will pay their invoices.

Factoring is not a loan, so you are not taking on any new debt. It removes anyt restrictions as weith traditional fundingso you're able to meet the day to day needs of your business as well as to take advantage of future opportunities.Factoring services will not ask for any equity stake in your company and the money is available immediately upon completion of work or billing. You remain in control of your business, not a bank or cosigner. Likewise, not incurring new debt will keep your credit score healthy. A healthy credit score can insure future healthy growth of your business.

A business owner with cash on hand gives them extra bargaining power.

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