Author John Paglia found that instead of the projected 10 percent revenue growth most of these businesses could expect, with access to additional capital revenue growth as high as 25 percent. So what is going on? He also found that lenders and investors rejected about 90 percent of loan applications or investment proposals secured by real estate holdings, as well as rejecting 73 percent of those applications that are based on a business’ cash flow. Therefore businesses determined to pursue expansion plans are forced to turn to other funding sources.

What’s more, this study also found that about 50 percent of business owners turned to friends and family for money and only 10 percent took advantage of financing from alternative lenders. yet we all know that even funding from some alternative sources can be a challenge to obtain. Venture capitalists and angel investors tend to look at a business’ cash flow and can be hesitant to invest if those numbers aren’t healthy.

There is, however, one alternative source of funding kn own as factoring receivables which doesn’t rely on current cash flow – it relies only on the accounts receivable invoices that a company has on hand. Many aren’t familiar with factoring receivables. So what is it?

Invoice factoring is a practice wherein a business sells its accounts receivable invoices to a third party at a discount in exchange for immediate cash. This method has always been used by businesses to cover financial needs during periods in which these needs exceed cash flow. It’s not the business’ credit that’s up for inspection but rather the debtor’s (i.e., the party named on the invoice) and there’s nothing to repay – factoring isn’t a bank loan. Loans are based on your assets and the ability to pay it back. But when you factor, the funds available are based on your credit-worthy customers and are virtually unlimited. The more invoices you have, the higher your credit line is.

If you feel limited by a lack of capital from traditional funding sources, take a look at alternative funding, like factoring receivables. Don’t take unnecessary risks with your business, like prioritizing certain bills or payments over others so as to have cash on hand. The financial climate is tough, but it’s not impossible to navigate. Factoring receivables can be a quick and easy way to obtain additional capital to keep your business growing and expanding.

BETHESDA, MD–(Marketwire–February 8, 2012)–According to the Interface Financial Group (IFG), as the private construction sector recovers economically; construction factoring is an ideal alternative funding solution to support the industry and its growth. The latest statistics from the Bureau of Labor Statistics (BLS) indicates that the construction industry’s unemployment rate increased in January to 17.7 percent, from 16 percent in December 2011. January was also the 16th-consecutive month in which the construction industry’s jobless rate was lower than its prior year figure.

Although these figures are lower than January 2011’s statistic of 22.5 percent, the BLS also reported that the February 3rd monthly employment update is showing that construction gained 21,000 jobs in January. Along with the 31,000 jobs that were added in December 2011, the industry’s total employment rate is now at its highest level in two years. The report indicates that nearly all the construction sectors posted gains in jobs last month. What’s more, architectural and engineering services added 6,900 jobs last month

“Construction’s rates typically get worse in the winter when building volume drops, so this report is truly a good indication of growth in this sector,” said. George Shapiro, IFG’s chairman and chief executive officer. Yet while these companies are adding jobs and getting new contracts, we have seen how construction factoring provides the much needed alternative funding required to sustain growth — maintaining payroll and production materials for future contracts.”

The construction sector benefits tremendously from invoice factoring because sub-contractors are no longer required to wait for payment before starting on the next phase of a project, or begin construction on a new project.

When factoring, a sub-contractor or construction firm can realize a very fast turnaround on accounts receivable due for completed stages of a construction project – even 24 hours. Unlike a loan factoring is the purchase of financial assets, or accounts receivables. There are no co-signers required or upfront fees. IFG has no minimum sales volume requirements, and professional fees are competitive.

One of the only factoring companies in the United States offering Construction Factoring services, IFG’s private label solutions also include Export Factoring, providing services for companies who export from the United States and Canada; P.O. Funding to finance purchase orders when a company receives a purchase order and needs to purchase supplies to fulfill the order; and Inventory Financing, a solution promoting a company’s growth by funding them when they must expand and purchase inventory.

IFG does not expect to buy 100 percent of a company’s receivables and professional rates are competitive. The program allows choices of invoices to be factored, enabling customers to retain most of their money, to spend the minimum fees, plus guarantee adequate cash flow.

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, Singapore, Australia, New Zealand, UK and Ireland, and offers cross-border transaction facilities. With more than 140 offices across North America and over 39 years of experience, IFG provides innovative accounts receivable factoring services and solutions by offering short-term working capital to growing businesses. Single 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 factoring, including accounting, finance, law, marketing and banking.

Contacts:
Kristin Gabriel, MarCom New Media
T: 323.650.2838
E: Kgabriel@marcomnewmedia.com
Headquarters: The Interface Financial Group
7910 Woodmont Avenue, Suite 1430
Bethesda, MD 20154
T: Toll Free: USA — 877.210.9748
T: Toll Free: Canada — 877.340.6893

speak with a professional to make your site more competitive. While a simple Yellow Page listing used to be enough, today more and more customers are expecting mobile versions of company website so they may access information on the go. But the good news is that this means they will be more likely to share the site with others.

A business website should provide as much information as possible. So use factoring services today in order to get cash in 24 hours that could be used towards this service. Make sure you communicate clearly because people come to company websites to find out information. Provide press releases, news, manuals, FAQs, contact information or troubleshooting guides.

Graphics using coding languages like JAVA can take a regular website from boring to “wow!” Professional graphic artists can make the users’ experience easy and enjoyable as well as making the site memorable. And hiring social media experts to develop those aspects of your web presence is also important.

Of course, building a professional website requires a financial investment. Whether it’s hiring the designers and programmers who put it together or buying server space or bandwidth, websites can be a costly proposition. If the company budget is tight and it’s time for an upgrade, consider factoring receivables to quickly raise the funds needed to invest in your website. For the unfamiliar, factoring receivables is a practice wherein a business sells its accounts receivable invoices to a third party at a discount in exchange for immediate cash. Factoring receivables is a method used by businesses to cover short-term cash needs during periods in which these needs exceed cash flow. It’s not the business’ credit that’s up for inspection but rather the debtor’s (i.e., the party named on the invoice) and there’s nothing to repay.

Today, factoring receivables is experiencing resurgence in popularity as many small businesses struggle in the current financial climate. A bank loan is based on your assets and the ability to pay the loan back. But when you factor, the funds available are based on your credit-worthy customers and are virtually unlimited. The more invoices you have, the higher your credit line is.

If you think you don’t have the money to upgrade or build a quality website – think again. Factoring receivables can be the simple, fast solution you’ve been looking for.

The small but notable gain settled the December reading at 93.8. This represents the fourth monthly increase since September, suggesting that the rising trend might stick. However, a comparative look at early 2011 shows the Index rising in the early part of the year, only to decline in March and April.

The Index has gained 5.7 points over the last four months, and although the Index is still six points below the pre-recession average and more than 10 points below the same point in the recovery from the 2001 recession, these gains in the Index provide hope that economic growth will pick up in 2012.

IFG’s Chairman and Chief Executive Officer George Shapiro said, “As retail sales are still slow, this means alternative funding strategies such as spot factoring could help SMEs finance continued business and grow as the economy improves during 2012. IFG’s spot factoring solution enables an SME to sell its accounts receivable invoices to a third party at a discount in exchange for immediate cash within less than 24 hours.”

Slow sales are still challenging many small businesses. The seasonally adjusted net percent of all owners reporting higher nominal sales over the past three months gained 4 points, rising to a net negative 7 percent. What this means is that there are still more firms with sales trending down upward. 23 percent of owners reported weak sales as their top business problem, even though there were reports of improving retail sales in the fourth quarter of 2011.

Unlike a loan, factoring services are the purchase of financial assets, or receivables accounts. There are no upfront fees and no co-signers required. IFG has no minimum sales volume requirement, and professional fees are competitive because each client’s circumstances vary, which may have an impact on the fees charged.

IFG private label solutions include export factoring, providing services for companies who export from the United States and Canada; P.O. Funding to finance purchase orders when a company receives a purchase order and needs to purchase supplies to fulfill the order; Construction Factoring; and Inventory Financing, a solution promoting a company’s growth by funding them when they must expand and purchase inventory.

IFG does not expect to buy 100 percent of a company’s receivables and professional rates are competitive. The program allows choices of invoices to be factored, enabling customers to retain most of their money, to spend the minimum fees, plus guarantee adequate cash flow.

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, Singapore, Australia, New Zealand, UK and Ireland, and offers cross-border transaction facilities. With more than 140 offices across North America and over 39 years of experience, IFG provides innovative accounts receivable factoring services and solutions by offering short-term working capital to growing businesses. Single 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 factoring, including accounting, finance, law, marketing and banking.

Contacts:
Kristin Gabriel, MarCom New Media
T: 323.650.2838
E: Kgabriel@marcomnewmedia.com
Headquarters: The Interface Financial Group
7910 Woodmont Avenue, Suite 1430
Bethesda, MD 20154
T: Toll Free: USA — 877.210.9748
T: Toll Free: Canada — 877.340.6893

1) Keep Trading Simple – most factoring services companies are looking a way to ensure that the underlying debts against which they providing funding are simple and straight forward. They prefer them to be easy to be collected
2) Simplify debts – you should ensure that invoices are only raised after the goods have been delivered or the services provided. In addition, any documentation that can be obtained to support the debt, for example proof of delivery or proof of provision of the service should be retained. Factoring companies do not prefer businesses that take deposits in advance or businesses that invoice single transactions via a number of stages.
3) Produce an Audit Trail - Factoring companies will want to understand how the paperwork concerning for sales flow through your business. An ideal audit trail begins with the proof of an order from a customer. Next, proof of delivery of the product or services, followed by the production of an invoice. Last, these are to be filed with remittances received from the customer.

By establishing a clear audit trail prior to applying for a factoring facility, you will be making the factoring company’s job as easy as possible as they are able to see the evidence of historic transactions and take comfort in the fact that there will be a robust set of documentation to support future transactions against which they are going to provide finance.

BETHESDA, MD–(Marketwire–January 6, 2011)–According to the Interface Financial Group (IFG), invoice factoring is a growing source of alternative funding for small to medium sized enterprises (SME’s). With struggling U.S. banks under pressure to raise capital and cut risks, some are severing the credit lines of select small-business customers, demanding that they pay off their balances rather than continue making monthly payments. IFG offers alternative funding solutions to SMEs to explore the cash flow benefits of factoring for sustained growth in 2012.

“Although consumer confidence is improving due to stronger manufacturing and steady improvements including about 100,000 jobs being added monthly, many small businesses are concerned about the news of banks severing credit more and calling in loans,” said George Shapiro, chairman and chief executive officer of The Interface Financial Group (IFG). “In addition, payments from customers may still be slow. The good news is that this has created the ideal environment for factoring as an alternative funding strategy which will help them finance continued business, and sustain growth at a steady pace through 2012.”

The United States Labor Department released the promising new jobs report indicating economic recovery in 2012. Even as the government said 200,000 new jobs were added and the nation’s unemployment rate was at a lower 8.5 percent in December, from a revised 8.7 percent in November, SMEs must still take risk mitigation steps to insulate their businesses from the impact of cash flow volatility.

Shapiro continued, “The Labor Department’s latest job statistics mean economic recovery is promising for small business enterprises, yet the recovering economy will continue to impact SMEs more so than larger enterprises because smaller businesses typically do not have large cash reserves. As a funding strategy, factoring is ideal to cover short-term cash needs during periods in which the small business needs exceed cash flow.”

IFG offers spot factoring solutions that will enable an SME to sell its accounts receivable invoices to a third party at a discount in exchange for immediate cash within less than 24 hours. Unlike a loan, factoring services are the purchase of financial assets, or receivables accounts. There are no upfront fees and no co-signers required. IFG has no minimum sales volume requirement, and professional fees are competitive because each client’s circumstances vary, which may have an impact on the fees charged.

Private label solutions include export factoring, providing invoice factoring services for companies who export from the United States and Canada; P.O. Funding to finance purchase orders when a company receives a purchase order and needs to purchase supplies to fulfill the order; Construction Factoring; and Inventory Financing, a solution promoting a company’s growth by funding them when they must expand and purchase inventory.

IFG does not expect to buy 100 percent of a company’s receivables and professional rates are competitive. The program allows choices of invoices to be factored, enabling customers to retain most of their money, to spend the minimum fees, plus guarantee adequate cash flow.

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, Singapore, Australia, New Zealand, UK and Ireland, and offers cross-border transaction facilities. With more than 140 offices across North America and over 39 years of experience, IFG provides innovative accounts receivable factoring services and solutions by offering short-term working capital to growing businesses. Single 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 factoring, including accounting, finance, law, marketing and banking.

Media Contacts:
Kristin Gabriel, MarCom New Media
T: 323.650.2838
E: Kgabriel@marcomnewmedia.com
Headquarters: The Interface Financial Group
7910 Woodmont Avenue, Suite 1430
Bethesda, MD 20154
T: Toll Free: USA — 877.210.9748
T: Toll Free: Canada — 877.340.6893

Designing the perfect accounting system for your business may take time, and a trial by error approach, but while you do it there are five components that are essential to keep in mind including:

1. Transactional recording system
2. Filing system
3. Chart of accounts
4. Procedures for who does what
5. Reporting package structure

When it comes to the bookeeping system, it depends on the size of your company, your business structure, the industry, competitors, and your internal control requirements. It must be designed so it is easy to use – even for a person can use with no bookkeeping trining.

To serve you well, the bookkeeping system needs to handle day-to-day bookkeeping; determines your profit margin
Help you know if you are charging enough to cover expenses; track lending arrangements and criteria agreed upon by banks; help prepare accurate compliance tax returns; ensure you can pass a tax audit; and it lets you know when you spending too much money.

Another thing — you also should think about setting up an accounts receivable factoring company early on. It’s the best way to collect the funds from outstanding invoices, since most companys pay every 30 60 or even 90 days. When sales are slow and funds have not yet come in, factoring will enable you to get cash in less than 24 hours.

Check online for bookkeeping systems with free trial software. It will track all your business transactions the money you make and spend, and automate routine transactions. Another thing some people never realize is that a bookkeeping system will help you run reports organize your records automatically for easy tax preparation.

Don’t hesitate to use invoice factoring to raise fast cash if you run into a tax deadline. And remember, your accounting system will change as your business grows.

BETHESDA, MD–(Marketwire – Dec 15, 2011)–According to the Interface Financial Group (IFG), a new survey says the majority of small business owners have a positive outlook about their cash flow in 2012, but despite their optimism, 80 percent of small businesses are still plagued by late payments. (Source: The PaySimple Small Business Pulse Survey took place in October 2011 surveying small business owners and employees, with responses from 223 respondents.)

Finding new business and retaining customers are reported as the top business challenges for 2012.

The Small Business Cash Flow Outlook found that small business reported the following:
•55% — finding new business as one of their top two business challenges
•45% — retaining customers as one of their top two business challenges
•41% — cutting costs as one of their top two business challenges
•55% — have had better cash flow in 2011 than in 2010
•82% — anticipate that 2012 will be better for cash flow than 2011
•80% — are experiencing late payments
•43% — are “keeping track of everything” as a top payments challenge
•41% — say late payments is the top payments challenge
•82% — accept checks while 66% still accept cash
•64% — accept payments by mail and in person
•12% — are now accepting mobile payments

George Shapiro, chairman and chief executive officer of The Interface Financial Group (IFG), believes, “Even while many small businesses are anticipating cash flow improvements in 2012, the rate of late payments is not good. This is why we know factoring is necessary now and will continue to be a plus for any small to medium-sized business in the New Year.”

The survey also determined that many small businesses are not taking proactive measures with only 22 percent charging late payment penalties and 20 percent offering early payment incentives.

On the other hand, factoring companies like IFG offer a funding strategy that enables an SME to sell its accounts receivable invoices to a third party at a discount in exchange for immediate cash within less than 24 hours. A method used by businesses to cover short-term cash needs during periods in which these needs exceed cash flow, factoring helps finance continued business.

Unlike a loan, factoring services is the purchase of financial assets, or receivables accounts by a factoring company. There are no credit checks or upfront fees and no co-signers required. IFG has no minimum sales volume requirement, and professional fees are competitive because each client’s circumstances vary, which may have an impact on the fees charged.

Private label factoring solutions include export factoring, providing factoring services for companies who export from the United States and Canada; P.O. Funding to finance purchase orders when a company receives a purchase order and needs to purchase supplies to fulfill the order; Construction Factoring; and Inventory Financing, a solution promoting a company’s growth by funding them when they must expand and purchase inventory.

Factoring companies typically do not expect to buy 100 percent of a company’s receivables and professional rates are competitive. The program allows choices of invoices to be factored, enabling customers to retain most of their money, to spend the minimum fees, plus guarantee adequate cash flow.

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, Singapore, Australia, New Zealand, UK and Ireland, and offers cross-border transaction facilities. With more than 140 offices across North America and over 39 years of experience, IFG provides innovative accounts receivable factoring services and solutions by offering short-term working capital to growing businesses. Single 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 factoring, including accounting, finance, law, marketing and banking.

Media Contact:
Kristin Gabriel
MarCom New Media
T: 323.650.2838
E: Email Contact

Headquarters: The Interface Financial Group
7910 Woodmont Avenue, Suite 1430
Bethesda, MD 20154
T: Toll Free: USA – 877.210.9748
T: Toll Free: Canada – 877.340.6893

Apparently around 1.4 percent of minority-owned businesses closed down last year, compared with 2.9 percent that closed in 2008. (Source: The Global Entrepreneurship Monitor.) So how could resource constraints actually be stimulating great business practices today? Hiring may have stalled, but it is the small to medium-sized businesses (SMEs) who are innovative and who always figure out ways to survive. And they will be the first in line to hire when revenues pick up.

It is all about cash flow, and factoring is the one thing that can help SMEs with their cash flow today. What this means is that if you own a small business, you should forget about the recession, or the negative predictions or the bad unemployment numbers. Simply instead, take a long hard look at your outstanding invoices. This could very well be a treasure chest of potential. And this is one way to survive gracefully. Once you have started using a factoring company, you will see how the cash flow you generate today, will help your business survive in the future.

Invoice factoring has been around for many centuries, and in fact, more than 4,000 years. It works. Factoring is a flexible form of business finance, and invoice factoring only advances money to a company when it issues new invoices. Factoring finance advances payments of up to 90 per cent of the outstanding invoice value, and normally within less than 48 hours.

Accounts receivable factoring is one of the only financial strategies that is entirely able to bridge the gap between completing a customer’s order and receiving their payment. As the factor advances money secured only against the firm’s outstanding invoices, the amount that can be advanced will grow directly with all sales growth. The more trading success a firm enjoys, the more funds can be released to pursue new expansion opportunities. And this is without the common cash flow problems associated with late payments or extentions in the terms.