As economy slows and banks continue to restrict loans, small business owners are finding creative ways to get cash.
FOR IMMEDIATE RELEASE / PRURGENT
Bethesda, MD – July, 2012 – The uncertain economy is leaving many small business owners in cash flow limbo these days: there are opportunities for growth knocking at their door, but they don’t have the cash to take advantage of them because their bank won’t give them a loan.
And it’s not because the small business owner’s credit is bad or he’s overextended. It’s just that in this uncertain economic climate, despite having a viable business, entrepreneurs have to meet banks’ strict qualifications to get a loan. So many small business owners are turning to
local entrepreneurs in their community who provide an alternative financing option called “invoice discounting.”
The Interface Financial Group (IFG), the leading provider of invoice discounting services in seven countries, with 110 offices in the US alone, reports a record number of sales closed in the first half of 2012. That makes local IFG franchisees, who are usually in their second careers and work out of their home, heroes to fellow entrepreneurs in their towns.
“Invoice Factoring is essential to continue the economic recovery because it is one of the few forms of funding available to companies,” says David Banfield, president of The Interface Financial Group. “Because our service is offered in a franchise format, clients are doing business with the person who will actually buy their invoices so transactions are finished quickly. The good news for entrepreneurs around the country is that despite the slowing economy, IFG offices are ready to help small businesses with the costs of staffing and inventory if the business owner needs access to cash quickly or if bank loans aren’t available.”
IFG expects the interest in invoice discounting to continue through the rest of 2012 because the economic outlook for small business remains uncertain.
• The U.S. Department of Labor reports 80,000 jobs were created in June, leaving the unemployment rate at 8.2%.
• The National Federal of Independent Businesses survey reports small business optimism sank in June.
• National Association for Business Economics predicts sluggish growth for the rest of 2012, with improvements beginning in 2013.
How Invoice Discounting Works
IFG franchisees provide short-term working capital to small and medium sized businesses through invoice discounting. It is not a loan and IFG franchisees do not lend money. IFG buys a company’s unpaid current invoices, allowing clients to get access to instant capital and meet their financial obligations within two to four business days. The service is transactional, allowing businesses to use it as often as they need it. This easy and fast form of short term financing offers small business owners the opportunity to access cash quickly without having to wait for their outstanding invoices to be paid.
IFG has been established for 40 years and is a major player in funding small business needs in the U.S. and six other countries. IFG has more than one hundred locations in North America and is consistently ranked one of the top franchises by Entrepreneur magazine in addition to holding a “World Class Franchise’ designation by the prestigious Franchise Research Institute.
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About the Interface Financial Group (www.interfacefinancial.com)
The Interface Financial Group (IFG) is North America’s largest alternative funding source for small business. IFG provides short term working capital funding in the form of a unique Invoice Discounting service. The company serves clients in the manufacturing, service and construction sectors. Interface operates from a base of more than 150 franchise offices in Australia, Canada, New Zealand, Singapore, the United Kingdom, The Republic of Ireland and the United States. IFG’s innovative Invoice Discounting service is a fast and easy way for small businesses to turn receivables into cash. For more information visit: www.interfacefinancial.com or contact IFG at 800.387.0860, dtbinterfacefinancial.com.