U.S. small businesses in July gained 13 percent in July from a year earlier, according to The Thomson Reuters/PayNet Small Business Lending Index, which followed a revised 22 percent gain in June, as well as May’s 27 percent gain.

There is still much uncertainty about the economic outlook as U.S. lawmakers are still at an impasse over a deficit-cutting deal. Plus with manufacturing slowing and job growth at a standstill, there were signs that the U.S. recovery is faltering.

On the other hand, the fact that small businesses borrowing continued at a steady pace might mean there is no risk of recession. It does not matter if business owners are seeking loans or simply using the age old strategy of factoring, the fact is that these kinds of activities by small businesses is seen as an indicator for the broader economy because small business accounts for about 80 percent of new hiring. Visit www.ifgnetwork.com to learn more about invoice factoring services.