Invoice Factoring Blog

Link: http://www.ifgnetwork.com

A new July 16 Thomson Reuters/University of Michigan survey says  less than half of the consumers polled in a think they'll earn more money next year in 2011 than in this year of 2010.

That said, some smart small business owners remain optimistic because they know that accounts receivable factoring can help keep their businesses running until such time as the economy improves.

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

Today  The Interface Financial Group (IFG) announced a new series of educational videos placed on its You Tube channel called InvoicefactoringforB - factoring. More and more small to medium-sized businesses are thinking about using invoice factoring, or accounts receivable factoring, to obtain cash in order to avoid economic crisis.

Federal Reserve Chairman Ben Bernanke recently urged banks and regulators to seek ways to ensure that small businesses could get the credit they need to create jobs. Why? For one thing, credit has become dso ifficult to obtain that buisinesses need alternative methods of financing. Outstanding loans to small businesses declined to less than $670 billion in Q1 of 2010 from about $710 billion in Q2 of 2008.

The government began a mission in February of 2010 to identify how to improve credit access for small firms. Small businesses account for about 60 percent of job creation. Unemployment is still high, even as the jobless rate edged down to 9.5 percent in June, from 9.7 percent in May. 

It is  challenging for small business owners who need cash in order to sustain and grow.  They need funds to hire employees,  purchase equipment and supplies and pay bills.

In producing and posting the videos on the YouTube channel, FG's goal is to educate those businesses that can benefit from factoring, because  factoring is one tactic that many companies have discovered can help them to stay in business and weather the economic storm.

Factoring enables companies to get short-term working capital and improve cash flow and grow their businesses. Since most companies don't get paid immediately for delivered products or services, factoring benefits businesses that do not get paid for 30, 60 or 90 days by advancing up to 90 percent against the company's invoices.

A factoring company like The Interface Financial Group (IFG) purchases selected invoices at a discount. Factoring companies first typically look at the creditworthiness of the client's customers, and they do not expect to buy 100 percent of a company's receivables, so there are no minimum or maximum sales volume requirements.

These facts are all that much more reason for small businesses to seriously think about invoice factoring. Companies like IFG have long been providing financial resources such as factoring to businesses in need, whether it is their entire accounts receivables factoring or single invoice factoring, also known as spot factoring, when cash is needed during a time of stress.

To view the IFG videos go to factoring.

Link: http://www.ifgnetwork.com

According to a survey sponsored by the National Federal Independant Businesses - NFIB - more small businesses grew very pessimistic about the economic outlook after facing of weak sales and uncertainty about politics during the last month. It is news like this that is causing many firms to begin the age-old practice of factoring. 

The small business optimism index fell by 3.2 points in June, dipping to 89, and this was after posting several months of gains. Based on 805 responses to a random survey of NFIB members, this survey indicates that seventy percent of the decline for this month resulted from a deterioration in the outlook for business conditions and real sales gains. Very few small businesses plan to create new jobs, according to respondents. The survey also showed that only 10 percent of firms plan new hiring, that is down four points from May. About 8 percent of firms plan to reduce their workforce, up one point from the previous month.

What's more, declining confidence among these very small businesses could mess up Democratic hopes of an improving economy before the November congressional elections and give Republicans an edge in their bid to retake control of Congress.The number of business owners planning to make capital expenditures over the next few months fell a point to 19 percent, three points above the 35-year record low, the NFIB said.The survey showed more firms are looking at declining sales, more than those expecting higher sales. 

Many small businesses are cutting prices to attract customers and are liquidating inventories, in addition to trying tactics like invoice factoring, so they can at least pay their empployees and bills.

Link: http://www.ifgnetwork.com

Today news for small businesses that was posted in the Wall Street Journal featured Ben Bernanke,  Federal Reserve Chairman urging banks and regulators  to seek out ways to ensure that small businesses get the credit they need to create jobs. He said that making credit accessible to sound small businesses is crucial to our economic recovery. He also believes that not enough is being done to ensure that loans can be obtained by deserving, sound small businesses who depend on access to credit critically. He also cited outstanding loans to small businesses have declined to less than $670 billion in Q1 of 2010 from about $710 billion in Q2 of 2008.

Small business has long been thought of as the key to unemployment, which is still high, even as the jobless rate edged down to 9.5 percent in June from 9.7 percent in May.  The Fed has been on a  fact-finding mission, to identify how to improve credit access for small firms which account for about 60 percent of job creation, since February.  Forty meetings have taken place around the United States with small businesses, community leaders and bankers.  All have tried to identify obstacles that have prevented lending as needed.

These facts are all that much more reason for small businesses to seriously think about invoice factoring. Companies like The Interface Financial Group (IFG) has long been providing financial resources such as factoring to businesses in need, whether it is their entire accounts receivables factoring or single invoice factoring, also known as spot factoring, when cash is needed during a time of stress.  Go to www.ifgnetwork for more information about factoring. 

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

The U.S. Bureau of Labor Statistics says the aging-services industry, elderly and disabled services, also known as home healthcare  and community care facilities for the elderly, make up three of the top ten fast employment growth industries. Gerontology one of the hottest academic fields for the future, says the Chronicle of Higher Education.

Gerontology is now a major at schools like the University of Southern California (USC), where students are tracking  the trends and creating businesses that fulfill needs after they graduate to serve the more than 37 million seniors today. What's more, in around 20 years,  seniors will comprise nearly 20 percent of the U.S. population. Analysts say they also have cash and a calculated spending that exceeds $1 trillion.

It's these entrepreneurs catering to seniors that will have to keep their businesses running during a tough economy, so accounts receivable factoring might help them through the early stages of their new companies.  Some of the businesses cater to baby boomers and older Gen Xers who must find care for their parents at senior adult day-care centers where these seniors can socialize and participate in activities in a supervised environment. Informal social centers are more prevalent, catering to those with higher levels of functioning, whereas a medical day-care facility provides a more complex level of care incouding one or more registered nurses on staff. 

Given the ups and downs in patient occupancies, and supply costs, starting one of these businesses requries cash flow, so when cash is low at the end of the month, many owners use invoice factoring to meet their monthly supply needs, pay employees, and pay bills.  The bigger their business grows, the more workers they will have, and the more time they'll have to spend managing them instead of doing the actual work.