Obama Comments on the State of Small Business

Last Thursday President Obama made remarks in a press conference about the state of small business. Then it was followed more bad economic news as jobless claims have risen again — it is the fourth rise in jobless claims in the past five weeks and reaches the highest level since last November 2009.

Then the Federal Reserve in Philadelphia reported that manufacturing in the mid-Atlantic states has dropped, and this is just after they had also reported from a new survey that banks have eased their lending standards for small business the first time in four years. The survey was of bank lending practices, and the Fed found that the easing in loan standards was occurring primarily at the country’s largest domestic banks, finding that it’s the first time it had found easier lending standards being imposed on small businesses since late 2006.

President Obama said that 60 percent of job losses are coming from small businesses, defined as those with less than $50 million in annual sales.For those small businesses that are losing ground, but still in business factoring just might be the answer. Many businesses are experiencing unpredictable cash flow. But it is tough to make incoming cash stretch to cover short-term obligations. One way to regain your financial balance is to work with a factoring company, which can provide you with working capital when conventional funding is not available.

Factoring is also known as debt factoring, and involves selling your invoices to a third party, then in return the factoring company such as IFG will process the invoices and allow you to draw funds against the money owed to your business. Factoring is basically a finance, ledger management and debt collection service industry. Commonly used by businesses to improve cash flow, factoring can also be used to reduce administration overheads.