Factoring News – August 2012

Invoice Factoring Can Rescue U.S. Macroeconomic Conditions

More than halfway through the year 2012 it is no secret that the U.S. economy slowed down drastically during the first half of 2012. The annual growth rate being at just 1.75 percent. What is sad for small to medium-sized businesses (SMEs) is that the economy is expected to continue to be weak during the last two quarters of 2012. Many of these SMEs have opted to survice via an age old strategy known as invoice factoring. –more

Loans Declined 5% Last Year: Spot Factoring to the Rescue

A Small Business Administration report from July states that U.S. small business loans for $1 million or less declined 5 percent as of last year, while the dollar amount of small business loans declined 7 percent. It also appears as if between 2008 and 2010, there were more than 170,000 small U.S businesses that shut down. (Source: U.S. Census Bureau data.)

The financing problems that small businesses face was highlighted even further in The New York Fed’s recent Small Business Borrowers Poll where 544 small businesses in Connecticut, New Jersey and New York participated in a poll in April and May this year by the central bank, which determined that 13 percent of small business loan applicants got the full amount of credit they were seeking over the previous year. But, only a partial amount of credit was approved for another 36 percent. –more

Advantages of Construction Factoring for Utility or Cabling Installation Companies

Running a construction company that installs underground utilities or over ground cables can be very profitable. Most of the time, the customers are top rated companies such as major utilities or cable operators. Although profitable, keeping enough working capital to meet payroll and material obligations can be challenging. Especially since cable companies and utilities tend to pay their invoices in 45 to 75 days. Few cable installers can wait that long to get paid. For starters, they need to meet payroll, which is usually weekly or bi-weekly. Then, there are also suppliers that need to get paid before they’ll povide more material. –more-


Interface Financial Group Recommends Accounts Receivable Factoring for SMEs That Are Not Getting Funded

According to The Interface Financial Group (IFG), North America’s largest alternative funding source for small to medium-sized enterprises, a study by the Small Business Administration (SBA) reported that U.S. small business loans ($1 million or less) declined 5 percent last year. The dollar amount of small business loans declined 7 percent. In addition, more than 170,000 small businesses in the U.S. shut down between 2008 and 2010. The report also showed that many of the small businesses could not receive the funding required to start up. (Source: U.S. Census Bureau data.) Continue reading

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