Invoice Factoring Blog

Link: http://www.ifgnetwork.com

During today's challenging economic times, and the tightening of the credit market has been very hard on the construction industry in general. Whether you are a general contractor or sub-contractor, you may be experiencing cash flow problems. Many contractors use progress billing, which entails risks and often creates cash flow problems such as purchasing supplies, meeting payroll, as well as the benefits and Workers Comp. for employees.

The construction industry is comprised of many types of businesses who could take advantage of factoring, including architects, appraisers, asphalt companies, brick masons, carpenters, drywall contractors, electrical contractors, engineers, flooring and tile contractors, inspectors, and many more.

There has been an increase in using factoring among contractors, which provides the much needed cash flow to pay suppliers and meet payroll. Construction factoring enables businesses to obtain funds based on their current accounts receivable. Each week when you invoice for the work you completed, you also send the invoices to the factor and receive an advance. Construction factoring been used in the construction industry for many years.

Link: http://www.ifgnetwork.com

Entrepreneurship is one of the best way of re-energizing our nation’s economy, yet one of the top issues for our nation's small to medium-sized businesses is access to credit, especially during this economic downturn.

In a recent July 2009 compendium from the Small Business Association Office of Advocacy, we learn more details from recent surveys showing small business lending standards have grown more stringent and demand for loans has fallen, so now it's even more important to control costs, manage cash flow and refocus strategies.

After reviewing the statistics, which includes data through 2008, it is clear that small businesses will benefit from accounts receivable factoring to get through tough economic times.

Link: http://www.ifgnetwork.com

Economists are telling us that we are finally coming out of the recession. But what is even more compelling is that with this news people are starting to have a more positive attitide about the future of business, livlihoods, and personal survival as well.

Let’s take a look at a few of the statistics from a new report distributed by the PNC Economic Outlook Survey, and their new fall findings support news that the economists have been saying - we are coming out of the recession. It appears as if our economy has started what they are calling "a moderate U-shaped recovery" through the year 2010.

This particular survey gauges the sentiment among small and mid-sized business owners, including:

--Most small business owners are less pessimistic about their company prospects than they were six months ago. In the spring of 2009, 36 percent were pessimistic compared to 25% during the fall of 2009.
--The government's economic stimulus has yet to trickle down to small business. 79 percent of them said they had not yet benefited from the stimulus.
--96 percent of small business owners said the economy has not yet begun to improve, while about 13 percent of them believe it’s on its way. This is twice as many as indicated such in the fall of 2008.

Finally fhe American Recovery Capital (ARC) loan program which is part of the economic stimulus package is picking up and being used by more small businesses as more banks decide to participate in the program.

One thing that samll businesses are also doing more now than ever before is invoice factoring.

It is the time for year-end financial and tax reviews, and this year is particularly important due to the markets and the economy. There may be some big tax changes as due to the deficit.

You can go to www.irs.gov, but here are some of the highlights: Congress extended the First-Time Home-Buyer Tax Credit and so it is more generous than before as of Nov. 6, 2009.

The new provision is a tax credit for up to $8,000 for 10 percent of the cost of a home. The credit is also refundable. That is if a buyer doesn't owe $8,000. The law also has more generous phase-outs. The credit now begins to disappear for single taxpayers with modified adjusted gross incomes of $125,000 and married couples with incomes of $225,000. The buyer must have a contract for a new home in place before May 1, 2010. There is a cap however for anyone buying a home for more than $800,000 - they will not get ant credit.

Another area to review is how to catch up on your payables. One way to get ahead before the new year starts is invoice factoring. Review your receivables prior to the end of the year. For those due in 60 to 90 days, contact a factoring company like IFG and factor thes outstanding invoices. That way the funds will come in now.

Link: http://www.ifgnetwork.com

On November 1, the CIT Group, Inc. announced a prepackaged reorganization, which will leave many of their CIT is a provideer of business loans, financial services and financing solutions worldwide - and in fact, one of the largest sources for providing working capital to small business. The company is also one of the largest factoring companies.

Retail analysts have predicted that customers of CIT, small retailers and suppliers, could have a difficult time obtaining financing after the holidays. According to the SCORE association (www.score.org) there are an estimated 29.6 million small businesses in the United States that employ more than half of the country’s private sector workforce.

Invoice factoring is not a loan, rather it is the purchase of financial assets, or receivables, from a factoring company. Factoring 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. With invoice factoring, there are no minimums, no maximums, no long-term commitments and no lengthy application process.

visit the IFG website at www.ifgnetowrk.com