Monthly Archives: January 2011

U.S. Small Business Owners Could Double Exports via Factoring

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It was reported today that this year top trade officials from the United States are embarking on a campaign to spread out across the country to recruit small-business owners to double exports by 2015 as part of the current goals within the administration. Today only about 1 percent of nearly 30 million small and medium-size firms in the U.S. export goods

It was a year ago when President Barack Obama announced the export initiative asking small and medium-size businesses to export, because the more small businesses export, the more they produce; the more they produce, the more employees they need reach out to the group of business owners that account for nearly two-thirds of job creation but a third of total goods sold abroad.

So far, exports are on track to achieve the 15 percent yearly gains required to reach the goal, up nearly 17 percent on the year through November. But continued progress could be difficult, since the administration is using as its base year 2009, when exports were at a three-year low.

Businesses in the U.S. could earn increased revenues via exporting, but in order to prepare they will need cash. One way to achieve this goal is to begin invoice factoring.

If you have questions about how factoring could assist you with setting up exporting services, or if you are seeking an alternative funding source for small businesses, announced that the company offers support to small businesses that are struggling with raising capital to fund growth prior to economic recovery.

StrategiesThat Turn Businesses Around Include Factoring

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If you are a small-business owner or an entrepreneur who has suffered from the economic downturn over the last couple of years, you might find that you can turn things around and even beat your competition by using these simple business strategies:

– Do not allow fear of failure hold you back because failure is often an opportunity to learn.

– It’s important to make decisions in a timely manner, and that means it is okay to use your intuition and make decisions on the fly.

– Don’t procrastinate, because it can lead to missed opportunities.

– Periodically ask yourself why you started your own business, and remember why you like being your own boss. Remain passionate about your work.

A small business must remain flexable. Since many clients pay for services 30 to 09 days after the job is completed, or after the product is delivewrd, small businesses tend to be cash poor. Accounts receivable factoring is a tip for staying cash rich rather than cash poor.

This flexibility is a huge advantage for small businesses, because you can set up an account with a factoring company, then be prepared for the times when you may need to contact them.

Upstate New York Banks See Small Businesses Seek Loans

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In a report that came out today, according to New York’s upstate-based First Niagara Financial Group Inc. (FNFG) and New York City-based Sterling Bancorp (STL) many small- to mid-sized businesses are seeking business loans. These banks reported stronger earnings in their fourth quarters. Another bank, First Niagara, based in Buffalo, saw commercial loans raise up 47 percent from the prior year, which prompted the bank to boost its dividend for the second straight quarter.

First Niagara has seen tremendous commercial loan growth and and this gives the officials runnint the bank confidence to make more deals. First Niagara reported a profit of $45.9 million, or 22 cents a share, compared with $28.9 million, or 16 cents a share, the year prior.

This is good news fdor businesses as we start off 2011, however rather than getting loans just yet, many analysts and business financial advisors are telling their clients to look for a factoring company and begin factoring against solid accounts receivables. Also known as accounts receivable factoring, this tactic provides cash in as little as 24 hours, and businesses cash to remain strong and to grow.

Invoice Factoring: Part of Starting a new Business

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If you are thinking about starting a business of your own, just know that it is a big step, so you’ll want to be prepared, and the Small Business Association (SBA) can help. Following are some pointers:

1. Start by weighing the pros and cons.

2. Find a mentor or counselor.

3. Get some guidance and advice from a mentor or counselor.8. Explore everything from grants and bonds toto invoice factoring.

4. Write a business plan.

5. Look up the SBA – it is your partner, equipping you with the information you need.

6. Don’t get a business loan untill you understand your options — such as startup costs?

7. Determine your break even revenue.

 

9. Make sure to comply with business laws.

10. Pay tyaxes on the income. And if you need cash to do so consider factoring.

Pickup Sales Increase Thanks to Small Businesses

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Research indicates that small businesses have been buying more cars and trucks, pickups in particular. This is just one more good sign that the U.S. economy is healing. It seems that many people have been holding onto their current model vehicles during the economic downturn that they are in need of updating their fleets. Last year, industry-wide pickup sales were up 29 percent. But Chevrolet said today that sales have increased for three consecutive months v– and these aresepcifically sales to small businesses, those that buy less than five vehicles a year.

recorded in the fourth quarter of 2010, Chevrolet dealers noted a 36 percent increase in small business sales. Thios is about three times the sales increase for the industry as a whole. The best news is that these numbers indicate that small businesses in the U.S. are beginning to reinvest.

As small businesses reinvest, many are using financial strategies such as accounts receivable factoring, to provide the cash for such investments as the ir vehicle fleets. Factoring invoices can bring in much needed cash within 24 to 48 hours.

NFIB Reports Improved Access to Capital

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Business owners started reported their access to capital was improving in late December 2010, according to the National Federation of Independent Business (NFIB). They have been conducted research surveys through the entire downturn, and for the firsdt timeNFIB’s economic report in December had some pretty good news. More than 90 percent of business owners polled said all their credit needs were met, and they had no need to borrow money. In fact 53 percent said they did not need a loan, another positive indicator of recovery in the small-business sector.

Those who said access to credit was their number-one problem totaled only 4 percent. while 30 percent talked about how weak sales was their number one issue. a real low of 28 percent of owners said they are borrowing money regularly eiher via credit, bank loans if they can get them, or cash advances.

This brings up the point that many cutting edge business owners are using factoring companies on a regular basis, as opposed to loans and or credit. Invoice factoring offers many benefits over loans including:

  • Funding for growth
  • Improved cash flow.
  • Control over credit.
  • Debt protection
  • Better terms with your suppliers.

For more on the benefits of factoring, contact the Interface Financial Group (IFG) www.ifgnetwork.com.

46 Percent of Gen Yers to Start New Business in Five Years

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A new report today published today by EMPLOYERS , America’s small business insurance specialist , said that 46 percent of Generation Y say they plan to start a business in the next five years. Eight percent reported that they already have started a new business. Amid continuing economic uncertainty, the latest poll affirms that the 18-to-25-year-old Gen Y demographic represents an entrepreneurial market segment.

Gen Xers are from the ages of 26 to 45, and studies show that the inclination to start a business in the next five years declines among Baby Boomers – ages 46 to 65 – at 21 percent, and four percent for The Silent Generation (over 66 years old.)

Those who are already in the throws of starting a new business know that cash flow is critical. Due to the current world economy, one strategy that many business owners are using today is invoice factoring, a solution that can turn your business into a cash business without it having an impact on your customers. Through the medium of invoice factoring your quality, current accounts receivable and any invoices that represent your investment-can be turned into instant every month.

A Factoring Company Can Assist with Tax Debts

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Now that 2011 is here, if you’re a small business then you are going to be preparing your taxes. As new Federal laws take effect you must make sure your business taxes are paid or you will have to pay compounded interest and penalties which garner a daily interest rate, plus a monthly 5 percent penalty each and every month up to five months for a maximum of 25 percent penalties.

The most common tax payment problem is because a small business does not pay their payroll tax, and not paying 941 payroll taxes could place your business in jeopardy. Even if the company is dissolved, the IRS will still require you to pay outstanding payroll taxes. This is why the very best advice for tax problems is to be pro-active at all times.

However, if you do not have enough funds to pay your business taxes on time, then this is a strong indication your business is improperly capitalized. A factoring company can actually assist in situations where there is a delinquency. If a company has receivables, invoice factoring can help providing cash quickly to help begin paying down a tax debt. Some of the funds can be used for other expenses and some to pay down taxes owed.

What is the Future of Factoring for Small Businesses

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A small business typically needs additional working capital to finance the growth, therefore, this is why accounts receivable factoring could be the answer providing funds of up to 90 percent against the value of your receivables. Although not all small businesses’ products or services are suitable to accounts receivable factoring. The most suitable being the simplest or more straightforward type of product/service which can easily be shown to have been provided for example by a signed delivery note or timesheet.

Even though many failed, a number of businesses have survived the economic downturn. Now, in the face of tight credit at mainstream banks, factoring is becomming more and more popular. It is not a loan as a bank loan involve two parties. Factoring involves three parties, and it is based on the value of the com[pany’s accounts receivables.

Accounts receivable factoring companies usually take a look at the quality and spread of the debtors before making an offer. And they will also look at any bad debt record, such as the aging of the sales ledger and collection performance. Factoring is the sale of a company’s invoices at a discount to a factoring company who pays the business a discounted amount off of the face value amount of these invoices.

Small Business Employment Index Shows Growth

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The most recent Small Business Employment Index from Intuit, Inc. showed that small business employment continued to show growth in December, the last month of 2010. There was also an increase of hours worked most likely due to the holiday retail season – hourly employees at small businesses nationwide worked an average of 107.5 hours in December, or around a 24.8-hour work week. This is a nearly 0.2 percent increase from the revised November figure of 107.3 hours.


This monthly report showed that small business employment grew by 0.3 percent in December, which equals an annual growth rate of about 3.4 percent; creating about 57,000 new jobs in the U.S.


The employment growth rate for November was revised upward to 0.4 percent, which equats 73,000 jobs added for the month of November, and a 4.4 percent annual growth rate. Keep in mind the numbers cover part-time work for many small business employees.


The average monthly pay for all small business employees was around $2,607 per month in December, which means it was at a nearly 0.1 percent decline. Technically this is considered flat, from the revised November figure of $2,609 per month. Part-time work for many small business employees, this translates to wages of approximately $31,300 per year.

In order to survive the tough economy, and survive, there are tactics that some small businesses have long discovered, namely accounts receivable factoring. This enables cash flow, something no business can survive without. And today factoring companies like Tbhe Interface Financial Group facilitate single infoice factoirng.

Source: Smallest U.S. businesses that use Intuit Online Payroll