Monthly Archives: December 2009

Handling Tough Economic Times Via Invoice Factoring

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How do you handle tough economic times? As the economic crisis isn’t over yet, the self-employed and micro small-business owners continue to have to make tough decisions regarding their operations. In the year 2008, the National Association of Self-Employed (NASA) asked its members this same question: How much of an impact is the slow economy having on your business at the present time? 50 percent said it had a significant impact on their business while 21 percent said it had a moderate impact.

No doubt that today the percentages would be worse. But here’s the good news. Invoice factoring, otherwise known as accounts receivable factoring, has helped save a number of small businesses from destruction. Better known as single invoice factoring, or sometimes ‘spot factoring,” this business funding technique has been highly successful for a number of small to medium-sized businesses. With times as difficult as it has been for more than 9 million self-employed sole proprietors – including contract workers, and freelancers – factoring became the go to business strategy during last year’s recession. According to the Bureau of Labor Statistics, they make up about 8 percent of the total U.S. labor force.

Accounts receivable factoring has helped keep many a business alive, while others failed. Spot invoice factoring, when done by The Interface Financial Group (IFG) is simple. You can sell just one single invoice because IFG has no minimum sales volume requirements. Use the service only as you need it, and similarly, there are no maximum limits either. How much can you advance against invoice? IFG advances up to 90 percent against invoices that you want to sell.

What is Construction Factoring?

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The construction market demands adequate cash flow and contractors have various ways to keep their operations running smoothly – one of which is known as construction factoring.
If you are a contractor in the business and getting paid faster would simplify the operation of your construction company, then read more information on how you could use construction factoring.

Factoring your construction receivables is the fastest way of getting paid now rather than later. The construction industry is one of several sectors that can benefit tremendously from invoice factoring.

Sub-contractors susally must wait for payment before starting on the next phase of a project, let alone to begin construction on a new project. With invoice factoring, the sub-contractor or construction firm can realize quick turnaround within 24 hours on accounts receivables due for completed stages of their construction projects.

With construction invoice factoring, the construction company, or sub-contractor, can be paid virtually overnight for these invoices (accounts receivable) thus speeding up cash flow and improving the company’s ability to start immediately on the next phase of construction.

IFG Network is one of the few factoring companies that is willing to provide construction factoring…in fact, IFG Network welcomes construction invoice factoring and would love to discuss with you just how easy it is to get the cash you need without any lengthy and aggravating lending process. So, if you, or your construction firm is interested, or in need of, short term financing against completed construction jobs, or desires immediate payment for finished project stages, give us a call or fill out a brief inquiry form to get started. That’s right, immediate working capital is available now.

Construction Factoring for 2010

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In the year 2009 there was an increase in factoring among contractors, and that is probably not going to change in the New Year. This last year’s tightening of the credit market was especially difficult for the construction industry, one that is responsible for building houses, corporate facilities, factories, apartments, offices, schools, bridges and roadfs in America. As we enter the year 2010 many general contractors and sub-contractors are still experiencing cash flow problems.

Today there are still many architects, contractors, builders, inspectors, appraisers, brick masons, carpenters, electrical, drywall, flooring and tile contractors, who could take advantage of accounts receivable factoring to help them get by until our exconomy turns around.

The industry is divided into three basic categories: 1) Building, which includes general contractors who build residential, industrial, commercial, and other buildings. 2) Civil engineering construction whioch is for contractors that build roads, bridges, highways, and tunnels, and 3) Specialty trade contractors, the workers who handle carpentry, painting, plumbing and electrical. And not all of these jobs are new structures. Sometimes they involve repairs, maintenance,or improvements.

General contractors often specialize in one type of construction — residential or commercial building, and they are in charge of the entire job. Although general contractors may do a portion of the work with their own crews, they often subcontract work to specialty trade contractors.

Construction factoring enables businesses to obtain funds based on their current accounts receivables, so they can go ahead with the next phase of a project, rather than wait till the invoices are paid. That’s why during the last year factoring was poplular to help provide the cash flow needed to pay suppliers, meet payroll and pay for insurance, as well as workman’s compensation insurance.

With invoice factoring, the sub-contractor or construction firm can realize quick turnaround, from 24 to 48 hours, on accounts receivable due for completed stages of a construction project. With construction invoice factoring, the construction company, or the sub-contractor, can be paid overnight for accounts receivable invoices, which speeds up cash flow and improves the company’s ability to start immediately on the next phase of construction for each project.

Pay Winter Heating Bills Via Accounts Receivable Factoring

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The high price of energy has become a hot topic for consumers and businesses alike. As a consumer you are experiencing the affects of these high costs at the gas pump. In fact, 94 percent of those who are self-employed say increased energy costs, such as gasoline prices, are affecting their businesses. (Source National Association for the Self-employed).

Let’s say you live on the East coast where the recent storms and snow fall caused your heating bill to go up drastically. What if you simply cannot pay the bill? Here is where accounts receivable factoring could save the day – just in time for Cristmas!

You could use a factoring company like The Interface Financial Group (IFG) to purchase select invoices at a discount. It is a fast, easy, and affordable way to turn your receivables into cash.

NASE Survey: Perspectives on Health Reform

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The National Association for the Self-employed (NASE)member survey results are in for the latest hot topic important to small-business owners: 2009: Micro-Business Perspectives on Health Reform. There were 1,839 people who responded and took the NASE survey.

The first question on the survey asked if they have been following the debate on health care reform being debated by the Obama Administration and Congress who are working to reform our health care system. 76.5 percent said yes, and 23 percent said no.
No 23.5% 4.9 percent of them said that reforming the health care system won’t affect them; while 33.9 percent said there are other issues that are more of a concern for me, my family and my business. 33.9% while a whopping 61.3 percent said they do not understand the items being discussed regarding health care reform.

In the meantime, many self-employed people who cannot afford insurance right now, are using tactics like invoice factoring to pay for their health insurance. 66.6 percent agree that it is important that our health care system be reformed.

62.1 percent of those surveyed believe the government should provide tax credits to businesses and the self-employed to assist them in purchasing health insurance for themselves and their employees. And 63 percent think small businesses should be allowed to group together via associations or organizations to purchase health insurance.

Until the health reform is resolved, if you would like more information about how invoice factoring can assist you in paying your health care bills, please go to www.ifgnetwork.com.

Source: NASE

Trends in 2010: Use it As You Need it Funding

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Better known as single invoice factoring, or sometimes ‘spot factoring,” this business funding technique has been highly successful for a number of small to medium-sized businesses. With times as difficult as it has been for more than 9 million self-employed sole proprietors – including contract workers, and freelancers – factoring became the go to business strategy during last year’s recession. According to the Bureau of Labor Statistics, they make up about 8 percent of the total U.S. labor force.

Gaining in popularity, this use it as you need it funding method has helped keep many a business alive, while others failed. Spot invoice factoring, when done by The Interface Financial Group (IFG) is simple. You can sell just one single invoice because IFG has no minimum sales volume requirements. Use the service only as you need it, and similarly, there are no maximum limits either. How much can you advance against invoice? IFG advances up to 90 percent against invoices that you want to sell.

Following are the details about how IFG’s single invoice factoring works. IFG begins with a due diligence that often takes one to two business days. Once this step has been completed the client is at liberty to offer invoices for purchase. Upon receipt of the invoices, the spot factoring company will check the credit of each debtor named on the invoices provided. They make sure that the sale represented has been satisfactorily completed. After this has been accomplished, the debtor is advised of the purchase of the invoice by the spot factoring company, and the client receives their funding. At the end of the credit period the debtor will then pay the spot factoring company directly, completing the transaction.

For more information about factoring, call The Interface Financial Group (IFG) at 877.210.9748.

First Factoring Law in America Book is Released

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BNA Books just released the first comprehensive treatise on factoring law in America. It offers readers a practical working analysis of the legal and business issues faced by factors as well as their clients, account debtors, third-party lenders, and guarantors. It also sheds light on invoice factoring and taxes. This book is unparalleled in the scope of its coverage.

It is a working knowledge of the financial services factors such as IFG provide. American Factoring Law provides a detailed analysis of the legal and business issues of factors and factoring transactions. While the discussion of factoring typically found in treatises on asset-based lending and commercial finance is relatively brief, this treatise is

Here’s a brief rundown on the book’s topics:

- Does the sale of accounts to a factor constitute a “true sale.”
- The factoring of accounts without recourse – compared to the factoring of accounts on a partial nonrecourse, partial recourse, split risk, or a full recourse.
- Litigation between clients and factors and their clients and accounts debtors, guarantors or third-party lenders, etc.
- What if a factor’s client goes bankrupt?
- The relationships between the factor and its sources for funding like refactoring, etc.
- Tax matters relevant to factors: set-offs by the government.

And much more…

Read the press release that announced the new book.

Credit Cards Versus Factoring

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Business credit cards, a valuable tool in managing cash flow, are now listing business’ debts alongside and in the same manner as personal debt, which gives the impression to anyone who checks your credit that you’re overextended.

What’s more, reporting the accounts to both the consumer and commercial credit bureaus is standard industry practice.

And there are credit card crimes, with less security to help protect consumers.

These are just a couple of reasons why small business owners may want to think about invoice factoring to help with cash flow.

Accounts Receivable Factoring Helps Small Businesses with Insurance Costs.

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http://www.nytimes.com/2009/12/10/business/smallbusiness/10insurance.html

This New York Times article reminds us that even if you have insurance for floods, fires, or other disasters, if a small business is taken out, the owner may still owe salaries and rent.

Have you heard about something called “business-interruption insurance?” Research shows that many people have not heard about it. This is just one more reason why as the New Year approaches, you need to consult with an expert to plan ahead. And one way to spare the funds to get insurance if you do not already have it, is through invoice factoring, otherwise known as accounts receivable factoring.

First you may want to know the difference between representatives. Independent agents, or brokers, represent several carriers and are paid on commission by the insurance companies. Captive agents represent one insurance company that pays them a salary.

Second, there are other types of insurance you many need to research and carry to avoid risk. Many small businesses operate without liability insurance, for example. Workers’ compensation insurance, however, protects employers from liability for an accident involving an employee and it is required by law in all states. Most business owners simply want to cut down on operating costs. The Bureau of Labor Statistics noted in 2007 there were more than 335,000 cases of employees injured on the job due to contact with objects and equipment.

There are also basic guidelines from the National Federation of Independent Business and Small Business Administration, or The Insurance Information Institute has a comprehensive guide.

For more information on how you can factor invoices to have the money ready to purchase insurance for your small business, go to http://www.ifgnetwork.com.

Bank of America Supports Small Businesses

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Today Bank of America has pledged to increase lending to small- and medium-sized businesses. The amount designated over 2009′s is at least $5 billion in 2010. This The pledge made by the bank’s Chief Executive Officer Kenneth D. Lewis was made to President Obama at a White House meeting of key bankers. Bank of America is already in the process of delivering $1.5 trillion over 10 years to low- and moderate-income businesses and households.

Bank of America extended more than $12 billion in credit to small businesses with a revenue of up to $20 million, during the first three quarters of 2009, and helped 49,000 small business clients improve their cash flow. During that same period the company also originated more than $215 billion in commercial non-real estate loans.

Everyone agress small and medium sized businesses are the lifeblood of the U.S. economy. But many businesses are still struggling, and have not been able to get small business loans. Many of these firms have been using a strategy known as invoice factoring to make ends meet and be able to make payroll, until the economy improves.

For more information on factoring, contact The Interface Financial Group. (http://www.ifgnetwork.com)