Invoice Factoring Blog

Link: http://www.ifgnetwork.com

The latest quarterly indicators report is out from the Small Business Association entitled, “Third Quarter 2009: The Economy and Small Business.” The U.S. economic recovery began in the third quarter of 2009 as real gross domestic product grew an annualized 3.5 percent. The public expenditures area grew, particularly the first-time homebuyers’ credit as well as the "cash for clunkers” automobile rebates, however real consumption rose at a 3.4 percent annual rate.

The SBA report also says there has been strong growth in real private fixed investment, real exports, and real imports. This all thanks to a strengthening of the global economy.

U.S. unemployment rate rose to 9.8 percent in September, while total nonfarm payroll jobs lost since December 2007 are at 7.1 million.

It appears that the SBA lending went up dramatically with volume up $247 million and 504 loans up $305 million from June to September. The number of venture capital deals slipped, but dollar volume rose from earlier in the year.

All of this news is good, but most small to medium-sized businesses are still feeling the cash flow crunch problems. That makes factoring even more appealing now. It is called survaval mode, and those companies that deploy invoice factoring, even if it is just one invoice at a time, will be better equiped to survive.