Monthly Archives: December 2010

Controlling Debt: 2011 Global and small Business Recovery

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Thursday the International Monetary Fund’s chief economist predicted there will be a two-speed global 2011 recovery with most developed countries growing slowly and emerging market economies growing faster throughout 2011.

Analysts are suggesting that in order for a health global economic recovery there is a need for countries to rebalance their economies via letting exchange rates adjust freely and at the same time controlling debt.

Controlling debt is a key issue with many small businesses today, and one way they can recover in the New Year is via invoice factoring, a great tactic to aid them in this process. Factoring enables businesses to catch up with bills, avoid penalties associated with late credit card payments, and purchase supplies for production, leading to better cash flow, and increased business and revenues.

Construction Factoring Can Support Builders in 2011

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Today the National Association of Realtors Pending Home Sales Index today reported that although sales remained below normal, contracts for pending sales of previously owned U.S. homes rose faster than expected in November. They based the data on contracts signed in November — these basically rose 3.5 percent to 92.2 from October’s number of 89.1. And when compared to 97.0 last year at the same time, the index showed sales were 5 percent lower this yeat.

Reuters polled economists before the report most of whom said they are expecting pending home sales to rise 2 percent in 2011 – based on evoidence due to low interest rates and early signs of economic recovery that has boosted sales.

Meanwhile builders, develoers and contractors have been trying to make ends meet , and some discovered that contruction factoring helped them resolve financial woes last year. The financial tactic assisted them in getting their invoices paid earlier than the standard 30/60 and 90 days, so they could begin the next phase of their projects earlier, iultimatelyimproving cash flow and overall revenues.

For more details on how construction factoring can assist you, visit www.ifgnetwork.com.

Can Factoring Help You Avoid an IRS Audit?

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The United states federal deficit is insurmountable, so the IRS is trying to close the $300 billion gap between what the government thinks we should have paid and what we actually do pay in taxes. So yes, if you are not careful, it would appear as if the IRS is out to get you if you do not pay your taxes.

you still can easily become an IRS target. Just remember that thewre were twice as many audits in 2009 as 2000, and enforcement revenue over the same period of time was up about 50 percent.

What are your chances of an audit? About one in a hundred businesses with less than $10 million in ssets gets audited by the IRS, and this number becomes 10 in a hundred for those with $10 to $50 million in assets. If your assets are greater than $250 million, it is one in four.


If you run a cash businesses then you are most likely high on the IRS list. Believe it por not, the IRS has auditor guidebooks for many p[rofessions, from ministers to veterinarians.

Factoring is one strategy that can help you when it comes to paying the IRS on time. Once you have prepared your year end taxes and know the damage – or how much you owe – then plan ahead – look for a reputable factoring company like IFG, and begin factoring and bring in some fast cash to help leverage yourn IRS debt.

Innovation in 2011 is Key to Small Business Success

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According to a recent survey by Discover Small Business Watch the survival rate of new ventures is on the upswing, but most people, in fact, 71 percent surveyed, are waiting for economic indicators to rise before spending or hiring. Interestingly, resource constraints are causing new and improved business practices.

The Global Entrepreneurship Monitor (GEM) found that only 1.4 percent of minority-owned businesses closed down last year, compared with 2.9 percent in 2008. Another research firm called Sageworks says that small-business profit margins are at a five-year high; specifically 6.2 percent on every dollar of sales. Why Thanks to savvy cost-cutting practices.

Similarly accounts receivable factoring is another cost-cutting practice for businesses to prepare for 2011. Factoring assists businesses so they get cash in to pay bills, avoid interest costs, and keep up with purchasing supplies and more.

How Small Businesses can Sell More

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All small business owners usually wants to sell more – especially during the holidays. According to Mr. Keld Jensen, chairman of the Centre of Negotiation at Copenhagen Business School, Copenhagen, there are three effective ways to sell more.

1. Connect emotionally with the prospective buyer.

2. Establish credibility with the customer.

3. Explain to the buyer what is in it for them.

Most people make purchases by using their emotions and then they later justify the purchase with facts, so it is important to first find out what’s most important to them by listening and asking questions to qualify your buyer. Jensen believes that you establish a rapport by showing interest before you connect your product to the person’s needs.

People enjoy doing business with like-minded individuals, so the most effective sales people might think about changng their communication style according to their buyers by paying attention to the way they communicate.

When selling, make sure you clearly stress what your product or service can do for the customer. This means explaining why your product’s capabilities will solve the buyer’s problems.

Another tip for small businewss owners to sell more duiogn the holidays, or any time of year is to be prepared with plent of merchandise. If credit card purchases are leaving you cash poor, think about invoice factoring to reel in some cash fast. Factoring has been used for centuries by entrepreneurs.

Construction Factoring to Aid Contractors in 2011

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Most construction professionals are looking forward to an industry turnaround in 2011, according to Engineering News-Record magazine’s ENR Construction Industry Confidence Index (CICI). The publication stated that construction and design firm executives believe the worst may soon be over. The index is based on 555 responses to surveys sent to more than 2,000 domestic firms on ENR‘s lists of leading contractors and engineering firms.

In the meantime, many contractors have been implementing construction factoring to pay employees, bills, and buy new supplies for projects that are in final phases of construction. Few factoirng companies handle construction factoring, so for more information, contact IFG at 877-210-9748.

Source: McGraw-Hill Construction.

Retail Businesses Benefit By Using Invoice Factoring After Holidays

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Economic times are challenging for many small businesses, especially for those in the retail business. The holidays can be one of the most difficult times for businesses when it comes to cash flow. Why? There are typically many extra expenses – everything from extra stock and shipping, marketing, and employee overtime, vacation leave payments plus shipping and stocking labor bills. This is the one time of the year when retail establishments can really benefit by using an age old tactics known as invoice factoring.

The holidays usually increase cash flow, however, when sales are made to customers using credit, and sales increase, only the accounts receivable increase. The cash does not increase. Then as inventory gets sold and depleted it needs to be replaced, but the receivables usually will not be collected for 30, or even 60 to 90 days after the sales happen. An increase in holiday sales can quickly deplete a firm’s cash reserves. Here are some tips from IFG on how to cash flow:

In the New Year of 2011, you too can make sure billing, collections, and payables systems efficient. Contact IFG to learn more about invoice factoring. Go to www.ifgnetwork.com.

  • Always watch customer credit limits.
  • Purchase a cash flow management system.
  • Check overdue accounts carefully.
  • Negotiate pre-New Year settlements with debtors.
  • Invoice factoring can speed up cash flow and increase working capital.
  • Manage your payables by waiting as long as allowed to pay company bills.

Once invoice factoring has been completed the client is at liberty to offer invoices to IFG for purchase. Upon receipt of invoices, IFG checks the credit of the debtor named on the invoice and makes sure that the sale represented has been satisfactorily completed. Once this is done the debtor is advised of the purchase by IFG and the client receives their funding. At the end of the credit period, the debtor pays IFG directly.

Factoring Aids Companys: U.S. Economy in Recovery Since June

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The National Bureau of Economic Research says that our U.S. economy has been in recovery since June 2009, but 71 percent of people said they won’t spend or hire yet, according to another survey conducted by Discover Small Business Watch. Why? They seem to be waiting for economic indicators to rise.

The fact is that the survival rate of new ventures in some sectors is on the upswing, and The Global Entrepreneurship Monitor (GEM) reported a mere 1.4 percent of minority-owned businesses closed down last year. In 2008 it was 2.9 percent in 2008.

Some businesses have been surviving with plenty of cash flow by using factoring. Business owners often have outstanding invoices at 30/60 or 90 days, so factoring companies are busy making sure that once a company qualifies, the funds go out in about 24 to 48 hours.

Treasury Announces SBLF to Increase Small Businesses Lending

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Today the Treasury Department announced the establishmen of the Small Business Lending Fund (SBLF), which is a $30 billion program encouraging lending to small businesses. SBLF provides Tier 1 capital to community banks qualified with assets of less than $10 billion. Essentially, SBLF creates incentives for dthese banks, intended to help increase their lending to small businesses.

According to the government small businesses create 65 percent of the nation’s jobs, and they have been challenged getting credit from banks since 2008. After the near-collapse of the banking system, small businesses have not been able to secure loans.

In the interum, small businesses have been faced with trying to secure fdunds on their own, using an age old tactic known as factoring to raise much needed cash.

Funded separately from the Troubled Asset Relief Program (TARP) which was set up in the throes of the credit crisis, the SBLF draws from a source that is a separately adminstered Treasury organization. It provides strong incentives for regional banks, in exchange for their increasing small business lending; dividend rates on SBLF funding is reduced.

Initially the dividend rate will be about 5 percent and if a bank’s lending increases by 10 percent or more, the rate could fall to as low as 1 percent. Banks that hold back on lending in the first two years will see rates rise to 7 percent, and after 4.5 years, and to 9 percent if the bank hasn’t repaid the SBLF funding.

For more information about invoice factoring, go to www.ifgnetwork.com.

Small Business Planning for 2011 Includes Factoring

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Some of the best small business planning tips come from SCORE. If you are like many people today who have lost their corporate jobs, you might be starting a new small business. Here are some of the best tips for planning:

Take the time to define your business idea.

Be able to talk about your business in an elevator pitch. (3 minutes.)

Write down your mission statement.

Think about what your motives are, and be sure you have a passion for owning yur company.

Commit to the frustrations, time, education and that you may encounter.

Learn about your competitors – their products, service, distribution methods, pricing, and advertising.

Think about any outside influencs that could affect your new business.

Always reserve small business factoring as standby method of maintaining your business: payong employees, bills, suppliers, and producdtion or manufacturing costs. Seek a factoring company like IFG to talk with about how invoice factoring can help keep your new business on track.

Ask for guidance from other small business owners, or from employees, trade associations and even government agencies.

Source: SCORE, www.score.org.