Invoice Factoring Blog

Link: http://www.ifgnetwork.com

Also known as factoring accounts receivables, factoring begins with due diligence that usually takes one to two business days. Once completed the client is at liberty to offer invoices to the factor for purchase. Upon receipt of invoices, the factor checks the credit of the debtor named on the invoice and makes sure that the sale has been satisfactorily completed. Next the debtor is advised of the purchase by the factor and the client receives funding.

Factoring is not a loan – it is the purchase of financial assets, or receivables, and it differs from traditional bank loans 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.

Also known as factoring accounts receivables, once a factor has approved the debtor, invoice factoring benefits businesses that do not get paid for 30 to 60 or 90 days. Due diligence efforts typically take a day or two, then factor advances up to 90 percent against the invoices. Often the turnaround is in less than 48 hours. What’s more, there are many companies who don’t expect to buy 100 percent of a company’s receivables.

Link: http://www.ifgnetwork.com

A new act called the CARD Act was signed into law last May 2009 is promising consumers more transparency about their credit card bills, but cardholders beware! it may require invoice factoring to get out of debt once you are in too deep with credit cards.

Watch our for higher fees as consumers could suddenly find themselves socked with a variety of new charges. In fact, banks and other card issuers have been aggressively implementing new fees or raising existing ones to help make up for any potential revenue lost as a result of the CARD Act.

Three percent was once the standard charge for rolling over a balance from one credit card to another, issuers are now assessing customers a five percent fee. Experts are warning consumers to pay attention to the "Terms and Conditions" section of their statement so they know exactly what they are being charged for.

According to IRA Bank Monitor, it will be harder to get a credit card in the future. Credit is poised to tighten even further. As part of the CARD Act, credit card companies will be severely restricted in how they market cards to college students.

The amount of credit made available to consumers by credit card companies plunged by $252 billion, or seven percent, between March and September of last year.

Consumers with poor or even a mediocre credit history may find it much more difficult to get a card or have their credit limit extended after the new law takes effect today -- Feb. 22.

Whereas invoice factoring is a solid financial strategy to get our of dept, contact IFG Network to see if there's a solution for you too.

Link: http://www.ifgnetwork.com/invoicefactoring.php

The Interface Financial Group (IFG) Principal Phyllis Rector spoke about IFG’s working capital and alternative funding solutions such as factoring for business at a special Greater Phoenix SCORE event Thursday, February 18, 2010 at the Scottsdale Arizona Doubletree Paradise Valley Resort.

The event also honored Maryanne Weiss, president of Gustare Ltd. Weiss is the current chairman of Greater Phoenix SCORE and a Skills Commissioner for the State of Arizona Dept. of Education. Arizona Congressman Harry Mitchell presented Weiss with an Extension of Remarks Certificate of entry of the “Woman of the Year” award into the Congressional Record. Banking and business guests learned about the IFG working capital solution for B2B business customers.

Other participating speakers at the Meet the Smart Teams from Greater Phoenix SCORE event included Arizona Congressman Harry Mitchell 5th district, Arizona who presented the Congressional Record certificate to Maryanne Weiss, Deborah Bateman, executive vice president at National Bank of Arizona, Tom Horne, Superintendent of Public Instruction of the State of Arizona, and Phyllis Rector, principal of IFG, who hosted the event.

Many Arizona businesses are finding the IFG solutions including accounts receivable factoring, to be an excellent way to stabalize while getting back on their feet ferom the economic downturn.

Link: http://www.ifgnetwork.com

Since the beginning of the recession in December 2007, employment in the construction industry has fallen by 1.6 million. Job losses in the nonresidential construction mounted in December 2009 with the loss of 7,700 jobs in December, according to the Jan. 8 report by the U.S. Labor Department. Nonresidential building construction shed 105,300 jobs, or 13.1 percent, to bring employment to 698,200 for the entire year.

As nonresidential specialty trade contractor employment fell by 8,800 jobs in December, jobs fell across the board with a loss of 388,000 jobs, or 15.8 percent, since December 2008.

Many builders are struggling, while others with outstanding invoices for recent jobs are able to use invoice factoring to collect past due accounts receivables.

3,800 jobs were lost in December in the residential building construction category, and 98,000 jobs, or 12.7 percent, since the same time last year. Year osss were at $934,000, or 13.7 percent, for the year. Job losses in the construction industry accounted for more than half of the net job loss in the United States in December.

For more information on construction factoring, contact IFG. www.ifgnetwork.com

The total employment in all industries shrank by 85,000 jobs in December following a revised gain of 4,000 jobs in November. Over the past 12 months, employment totals are down 4,164,000 or 3.1 percent. The nation’s unemployment rate remained at 10 percent for December 2009.

Link: http://ifgnetwork.com/construction_factoring.php

The 2010 Construction Outlook, was released by McGraw-Hill Construction in October of last year. The report forecasts an increase in overall U.S. construction starts for the following year.

Projections for 2010, thansk to improvements for housing from extremely low levels and broader expansion for public works, is expected to climb 11% to $466.2 billion, following the 25% decline that had been predicted for 2009.

The report idicated that the U.S. construction market in 2010 will be helped by growth for several sectors, following three straight years of decline. Many builders and general contractors used financial tactics like construction factoring to aid their bottom line, and of course they hope to be able to make it until the economy recovers.

Other indicvators stated that the benefits from the stimulus act will broaden and lift not just highway construction but also environmental public works, plus institutional structure types. Institutional buildings will begin to stabilize after losing momentum in 2009.

In 2010 improvements are expected for single family housing, after reaching bottom earlier in 2009, so overall, the level of construction activity should see moderate expansion in 2010. And if not we'll see a trend towards construction factoring continuing throughout the year.