Accounts Receivable Factoring is Bailout Option for Many Small Businesses in the U.S.

Accounts Receivable Factoring is Bailout Option for Many Small Businesses in the U.S.

The Interface Financial Group (IFG), North America's largest alternative funding source for small business, reports that accounts receivable factoring can aid small businesses with the current economic downturn, becoming their own bail-out plan. The small Business Administration reports small business owners create seven out of ten new jobs in the United States. IFG's factoring services can help turn a small business's accounts receivables into cash using accounts receivable factoring.

Bethesda, MD (PRWEB) July 3, 2009 -- The Interface Financial Group (IFG), North America's largest alternative funding source for small business, reports that accounts receivable factoring (http://www.ifgnetwork.com/solution.php) can aid small businesses with the current economic downturn, becoming their own bail-out plan. IFG's factoring services can help turn a small business's accounts receivables into cash.

Businesses facing what the government is calling "immediate hardship" can apply for loans of up to $35,000 through the Small Business Administration's America's Recovery Capital (ARC) program, as part of President Obama's bailout strategy. The terms include no payments for the first year, and no interest, however not everyone will qualify for an ARC loan.

"Since the beginning of the year, it is clear that Fortune 500 companies have not experienced as many problems surviving as small businesses, but for one or two-year old businesses that are in the heavy growth stages, the options are very limited," said The Interface Financial Group, Inc.'s Chief Executive Officer George Shapiro. "We would like to say that IFG's accounts receivable factoring services can provide many small businesses with their own bailout plan to survive through these tough times."

IFG believes that a small business no longer has to be a victim of their own success; encouraging small businesses to get help via the IFG network which currently extends to over 100 offices nationwide. Invoice factoring provides short-term working capital, and is an extremely fast way to turn accounts receivables into cash. This can put a small business suffering hardships from the economic downturn into the red, making it difficult to pay bills, and even the payroll for employees, or order new supplies needed to keep doing business.

As many businesses do not get paid immediately for delivered products and/or services; accounts receivable factoring benefits businesses that do not get paid for 30 to 60 or 90 days by advancing up to 90 percent against invoices. IFG looks at the creditworthiness of the client's customers and can fund within as little as 24 hours. The company does not expect to buy 100 percent of a company's receivables, and there are no minimum or maximum sales volume requirements.

Invoice factoring (http://www.ifgnetwork.com/solution.php?PHPSESSID=1469c3f9fc42e9d0d795568914365c26)has become a highly effective cash management strategy, particularly in the construction industry and for sub-contractors who often experience cash flow problems: meeting payroll, buying supplies, paying benefits and Workers Compensation. Factoring allows businesses to obtain funds based on the funds they expect to have coming in, or their current accounts receivable.

"Without The Interface Financial Group we would have had a tough time finding funding for our contracts. IFG's team goes above and beyond in helping small companies meet their financial needs," said the Quartus Corporation President Joseph H Haggler IV.

Invoice factoring is different from a traditional bank loan or the SBA-backed ARC loan in that bank loans involve two parties, while factoring involves three parties. Banks base their decisions on a company's credit worthiness, whereas factoring is based on the value of the receivables. Factoring is not a loan - it is the purchase of a financial asset, or the receivable.

The Interface Financial Group (IFG) typically looks at the creditworthiness of a client's customers and pays within as little as 24 hours. IFG does not expect to buy 100 percent of a company's receivables, and there are no minimum or maximum sales volume requirements. IFG's professional rates are competitive because each client's circumstances vary, which may have an impact on the fees charged. The program allows choices of invoices to be factored, enabling customers to retain most of their money, while spending the minimum fees to guarantee adequate cash flow.

Standard accounts receivable factoring has been around for more than 4,000 years. IFG begins the single invoice factoring process with due diligence that typically takes one to two business days. Once completed the client is at liberty to offer invoices to IFG for purchase. Upon receipt of invoices, IFG checks the credit of the debtor named on the invoice and makes sure that the sale represented has been satisfactorily completed. Once this is done the debtor is advised of the purchase by IFG and the client receives their funding. At the end of the credit period, the debtor pays IFG directly, completing the transaction.

The Interface Financial Group founder John Sheehy created the organization with the specific purpose of servicing the needs of that small business marketplace. Today, some 35 years later, IFG continues to service that same market and is now the largest alternative funding source for small business in North America. Interface has also grown to service small business needs in Canada, Australia, and New Zealand; and is evaluating other international opportunities.

About The Interface Financial Group (www.ifgnetwork.com)

The Interface Financial Group (IFG) is North America's largest alternative funding source for small business, providing short-term financial resources including invoice factoring (invoice discounting). The company serves clients in more than 30 industries in the United States, Canada, Australia, and New Zealand, and offers cross-border transaction facilities between the U.S. and Canada. With more than 140 offices across North America and over 35 years of experience, IFG provides innovative invoice factoring solutions by offering short-term working capital to growing businesses. Invoice factoring or spot factoring, is an extremely fast way to turn receivables into cash.

IFG was founded in 1972 to provide short-term working capital to help small to medium sized businesses grow. The IFG organization operates on a local level, providing clients with local knowledge and experience and business expertise in numerous diverse areas in addition to accounts receivable and construction factoring (http://ifgnetwork.com/construction_factoring.php) including accounting, finance, law, marketing and banking.

Media Contact:

Kristin Gabriel, MarCom New Media

T: 323.650.2838

Headquarters: The Interface Financial Group, Inc.

7910 Woodmont Avenue, Suite 1430

Bethesda, MD 20154

T: Toll Free: USA; 877.210.9748; Canada; 877.340.6893

# # #

Contact Information KRISTIN GABRIEL

The Interface Financial Group

http://www.ifgnetwork.com

323.650.2838