Global Economy Meets Factoring Companies

It appears as if along with the recession, more businesses are seeking global opportunities, in part, thanks to the Internet. Along with this opportunity comes the demand for funds to manage all of the new business growth. According to a recent study, the United States ranks third overall in entrepreneurship compared to other countries. This along with global Internet business trends in technology indicates that many businesses are looking at expanding globally.

In addition,*the U.S. ranks first on the entrepreneurial aspirations, and it came in sixth in entrepreneurial attitudes, while it was only eighth specifically in entrepreneurial activity.

As companies put together initiatives to expand into the global marketplace, the funds to do so may require the assistance of factoring companies, and there are plenty around the world. In fact, The Interface Financial Group (IFG) is North America’s largest alternative funding source for small business. The company serves clients in more than 30 industries and offers cross-border transaction facilities. IFG offers short-term financial resources, including invoice factoring. With more than 140 offices across North America and over 39 years of experience, as one of the leading factoring companies worldwide, IFG provides innovative accounts receivable factoring 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.

In reality, the demand for the funding of cross-border trade is growing. While standard factoring services exist in the marketplace and are ready to serve some parts of this growing demand, there are still many underserved small businesses who only need funding for just select invoices single invoice factoring will enable many small businesses to compete and use factoring companiesd only when they need it.

Here is how it works. For the most part, factoring companies purchase their client’s receivables, or financial assets, as opposed to getting a traditional bank loans. A bank loan involves 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 its receivables.
(*Source: Office of Advocacy titled Global Entrepreneurship and the United States by Zoltan J. Acs and Laszlo Szerb.)

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