Monthly Archives: April 2010

The Definition of a Small Business

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A business as defined by the Small Business Association (SBA) as an entity that is organized for profit; operates as place of business in the U.S.; and makes significant contributions to the U.S. economy through payment of taxes or use of American products, materials or labor. Businesses are independently owned and operated, and cannot be dominant in their field nationally. The types of businesses primarily include: corporations, partnerships, and sole proprietorships.

The SBA has established business size definitions, or “size standards,” for all for-profit industries numerically representing the largest size that a business may be to remain classified as a small business and this includes its affiliates and subsidiaries. The size standards apply to the SBA’s programs such as financial assistance and to Federal government procurement programs when there is a benefit available. A business must qualify as a small business concern. The Small Business Act states that no Federal department or agency may prescribe a size standard for categorizing a business concern as a small business concern, unless such proposed size standard meets certain criteria and is approved by the Administrator of SBA and unless specifically authorized by statute.

The fact that there are standards and regulations for business is another reason factoring for small business today remains one of the oldest practices in history.

For more information on factoring, or accounts receivable factoring, go to http:www.ifgnetwork.com.

It’s Tax Day and Factoring Could Help

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If you don’t have enough to cover your business taxes, you could use accounts receivable factoring to make up the difference fast.

As you know, the more tax deductions your business can take, the lower your tax debt will be. But this year if you misjudged the IRS rules on just what is or is not deductible, and you came up short of cash to cover the debt, there is one way that could solve the problem – accounts receivable factoring. Following are some answerrs to your questions about factoring:

Q: How quickly can one receive funding?

A: IFG usually completes funding within 24 hours.

Q: Can you be selective in the invoices sold?

A: Yes ? You can be selective. IFG does not expect to buy 100 percent of your receivables.

Q: Can I sell just one invoice?

A: Yes IFG calls this single invoice factoring, which has no minimum sales volume requirements. You use the service only as you need it. Similarly, there are no maximum limits either.

Q: How much can you advance against invoice?

A: IFG can advance up to 90 percent against invoices.

Q: How much will factoring invoices cost?

IFGs professional fees are competitive. Each client’s circumstances will vary and may have an impact on the fees. Send IFG a short, no-obligation application, and we will quickly provide a definite answer.

This could be the solution to your tax day challenges.

March NFIB Report Shows Pessimism

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Today a survey of companies conducted by the National Federation of Independent Businesses says U.S. small-business owners became even more pessimistic in March than they were in February. The NFIB’s index fell to an eight-month low of 86.8 from 88, with only one of 10 components improving. The index has been below 90 for 18 consecutive months now, having hit a cyclical low of 81.0 in March 2009.

Uncertainty and poor sales continue with economic recovery bennefitting larger companies more than smaller businesses accordiung to some economists as surveys of larger organizations show optimism about the economy, the recovery, increased sales, and even plans for expansion. (Source: Institute for Supply Management.)

In these uncertain economic times businesses can leverage their current clients to stay on track by using invoice factoring.

Companies interested in learning more about factoring can learn more at www.ifgnetwork.com.

Construction Industry Jobs Down While Construction Factoring Helps

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A new report from the Associated General Contractors of America indicates construction jobs continue decline. The March report indicates that it was Houston, Texas that lost the most (highest percent) of construction jobs (25,500 jobs)while Eau Claire, Wisconsin added the most, 900 jobs, nationwide During the Past 12 Months

Ten out of 337 metropolitan areas added construction jobs between February 2009 and 2010 citing data from the U.S. Bureau of Labor Statistics, while 230 metro areas experienced double digit declines in construction employment.

High numbers of job losses also occured in Chicago, Illinois with 25,200, Los Angeles, California at 23,000, Las Vegas, Nevada at 22,900, and Phoenix, Arizona with 20,600 jobs lost in the construction industry. Twelve metro areas experienced no change in employment.

Many general contractors nationwide are struggling, and surviving only by using construction factoring to keep going until the economy turns back around. The construction industry is one of several sectors that can benefit tremendously from invoice factoring. Invoice factoring enables a contractor to receive funds in as little as 24 hours against accounts receivable due for completed stages of a construction project. eivable) 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. The construction industry is one of several sectors that can benefit tremendously from invoice factoring. No longer is the sub-contractor, or construction company, required to wait for payment before starting on the next phase of a project, or begin construction on a new project. With invoice factoring, the sub-contractor or construction firm can realize quick turnaround (often within 24 hours) on accounts receivable due for completed stages of a construction project.

A 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.”>www.ifgnetwork.com.

Credit Card Rules and Factoring

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The new Credit Card Accountability, Responsibility, & Disclosure (CARD) Act’s rules took effect on Feb. 22, providing cardholders with some relief from practices that consumer advocates have long condemned. On the list is raising rates on old balances or applying payments so as to maximize interest charges. As an amendment to consumer protection laws, however, it did nothing to regulate the fast-growing market for small business credit cards. Business credit cards function much like consumer cards and are personally guaranteed by business owners, who often carry balances to finance their ventures. So now, small business cardholders ? face policies and uncertain prospects.

Analysts estimate that business cards account for 15 percent of all volume charged on credit and debit cards. A bill to cover business cards with CARD Act-style protections has stalled in the House, but small business advocates hope to attach the measure to a future Senate jobs bill.

In the meantime many business owners have turned to other methods such as factoring, otherwise known as accounts receivable factoring. IFG offers clients a use it as you need it funding option, therefore every invoice purchase is a separate transaction and does not form part of a portfolio lending approach. The transaction is modeled as a buy-sell transaction.

After being approached by a prospective client, IFG undertakes a thorough due diligence program that usually takes about 24 to 48 hours. Once the due diligence is completed, the client is at liberty to offer invoices to IFG for purchase. After receipt of the invoices, IFG will check the credit of the debtor named on each invoice and make sure the sale represented by each invoice has been satisfactorily complete. Once credit has been verified, each debtor is notified of the purchase by IFG and the client is paid for the invoices. At the end of the credit period the debtor will make payment directly to IFG thus completing the transaction.

The banking industry lobby says giving small business cards the same protections as consumers will curtail credit. Issuers will have to cut credit and raise interest rates if they can’t adjust rates later.

On Apr. 1, 2010 Bank of America announced that it would cease raising interest rates on existing balances in May for its 2 million small business cardholders. Other protections will be added in July.

Without laws these changes could be reversed by card issuers. Small business cardholders still face penalties such as fees for going over credit limits that issuers are now barred from charging consumers. Sometimes it is hard to tell when a charge will be approved if the card is near the limit. One tip is that business owners can avoid over-limit penalties by paying down their balance before their billing period ends.

Card issuers often argue that they need to be able to raise rates on existing balances to compensate for the risk of extending unsecured credit, yet BofA doesn’t expect that abandoning its ability to adjust rates will limit the amount of credit it can extend. The bank aims to boost lending by $5 billion to assist small businesses, including with credit card loans, in 2010.

Factoring and Financial Reform Legislation

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There are many busy lobbyists who are trying to make major changes to the 1,336-page financial overhaul legislation that will prevent future financial crises. The U.S. Chamber of Commerceplans to spend another $3 million on its efforts against the Dodd bill, bringing the Chamber’s campaign to $6 million.

Ten issues in the bill have come forth: Credit unions and their groups are hoping for an amendment that will raise the threshold from $10 to $50 billion in assets for depository institutions. This would be covered by the proposed Bureau of Consumer Financial Protection. The administration has been trying to figure out how to set up a process for dissolving failing financial firms, one of the main ussies within the overhaul. The financial industry had not been expecting Dodd’s bill to include language strictly limiting proprietary trading at banks. While the measure does not include specific limits in the statute, it does require federal regulators to devise a prohibition on trading.

Financial lobbyists are pushing to maintain strong powers for the federal government to pre-empt state financial regulations, anguing that without federal pre-emption of state rules, a number of regulations will harm the industry. The liberal Democrats want to rein in payday lenders — those making short-term loans at high interest rates. The industry is strongly opposed to new federal regulations, arguing in favor of state-based rules. Unlike this practice, invoice factoring and factoring companies only charge a small percentage for their factoring services.

The Interface Financial Group (IFG), has launched Operations in New Zealand

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IFG Network LLC, the operational company of The Interface Financial Group (IFG), has launched operations in New Zealand through its new subsidiary IFG Network New Zealand to facilitate and expand business in that market. IFG is North America’s largest alternative funding source for small business, providing short-term financial resources including factoring. IFG provides short-term financial resources including single invoice factoring to companies in the United States, Canada, Singapore, Australia, and New Zealand.

“With this new initiative we are looking to boost the business of present and future IFG offices in New Zealand through our syndication activities,” said Chairman of IFG and Chief Executive Officer of IFG Network George Shapiro. “New Zealand has strengths in key industries including food and dairy products, wood and paper products, wool, tourism, and there is no restriction on the amount of foreign currency that can be brought in or taken out of New Zealand.”

For more information on accounts receivable factoring, or other ficancial services go to www.ifgnetwork.com

Accounts Receivable Factoring, Small Business Tax Credits, and Health Coverage

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Business owners who don’t currently provide health insurance will now have a new benefit — a tax credit that President Obama is promoting will take effect in 2010. Small businesses are supposed to a 35 percent tax credit on the premiums they pay on health coverage for their employees’. Any business or non-profit organizations, will be eligible for the tax credit if they have fewer than 25 full-time employees, and pay an average salary of $50,000 or less annually. But they must cover at least 50 percent of their workers’ health costs. They won’t actually get the tax credit until they file their yearly tax returns.

The White House is estimating that 4 million businesses will benefit from it by the year 2014. So the question is that in the meantime, how will businesses o come up with the cash to provide the initial health insurance coverage. One way is accounts receivable factoring – taking invoices that are due to be paid by your customers, and factoring them for cash. If a company owes you money in 60 days for example, for services rendered, or a product sold, the factoring comapmny like IFG will simply check the credentials of the company, then give you the cash due in 24 to 48 hours. This method is known as single invoice factoring. Many small businesses have discovered that invoice factoring a number of invoices can provide enough cash to pay bills, buy more supplies, and meet payroll during these touch economic times.? 

IFG can assist you with invoice factoring to vover these new government requirements for health insurance, or even to cover the tax debts due this month.

The Interface Financial Group (IFG), has launched operations in New Zealand

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IFG Network LLC, the operational company of The Interface Financial Group (IFG), has launched operations in New Zealand through its new subsidiary IFG Network New Zealand to facilitate and expand business in that market. IFG is North America’s largest alternative funding source for small business, providing short-term financial resources including factoring. IFG provides short-term financial resources including single invoice factoring to companies in the United States, Canada, Singapore, Australia, and New Zealand.

“With this new initiative we are looking to boost the business of present and future IFG offices in New Zealand through our syndication activities,” said Chairman of IFG and Chief Executive Officer of IFG Network George Shapiro. “New Zealand has strengths in key industries including food and dairy products, wood and paper products, wool, tourism, and there is no restriction on the amount of foreign currency that can be brought in or taken out of New Zealand.”

For more information on accounts receivable factoring, or other ficancial services go to www.ifgnetwork.com