Factoring News – February 2012

Good News for the Construction Industry

Construction spending jumped 1.5 percent in December, over triple the consensus estimate. This is an indicator that a recovery may have started in the hard hit construction industry. This is good news for the economy as improved construction activity will lead to higher employment and increased supplier activity.

Many sub-contractors will need access to funds to help pay for labor and materials but there continues to be reluctance in the financial industry to lend for construction.

Invoice factoring can play a major role in providing funding for construction activities. Small construction businesses can benefit along with larger businesses from receivables factoring. It is a “use it as you need it” service that can provide fast funding to assist in paying costs during the duration of a project. The Interface Financial Group can provide that funding today!

Housing Starts Are Up: Time for Construction Factoring

According to the U.S. Commerce Department, U.S. housing starts are up 1.5 percent, the result of a seasonally adjusted annual rate of nearly 700,000 units in January. This figure has increased for nine consecutive months — the second-best pace of overall housing production since October of 2008. This report means that builders are getting back to work, and it adds to the evidence that the overall housing market is gradually but consistently moving in the right direction. This means construction factoring will go into full swing. -more-

Only 40 Percent of Businesses Have Funds to Grow

A recent study by the Pepperdine University Private Markets Capital Projects surveyed hundreds of privately held businesses as well as thousands of lenders and investors nationwide and found that only 40 percent of businesses had access to the funds they needed to grow. Though these businesses had solid growth plans, they were still denied funding from traditional lenders. Author, John Paglia, found that instead of the projected 10 percent revenue growth most businesses could expect, with access to additional capital revenue growth could be as high as 25 percent. -more-

NEWS

Construction Factoring Supports Recovery as Private Construction Accelerates

-The Bureau of Labor reports the construction industry’s unemployment rate increased in January to 17.7%, from 16 percent in December 2011–

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. -more-

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