With all the disasters facing people in the United States this summer – from the recent Gulf oil spill to the spring floods in the south, and tornados in the midwest, you might find it of interest that the Small Business Administration (SBA) has stepped up its efforts to provide low interest disaster loans in a declared disaster to businesses of all sizes and private, non-profit organizations for their business assets and to repair or replace personal property, equipment, inventory, machinery, and even real estate damaged or destroyed. For a small business to survive the storm’s wake, many could turn to invoice factoring for assistance.
In May, Nashville was battered by floods and the officials in Tennessee’s capital scrambled work to get businesses running again after a $2.4 billion loss to businesses in the town’s business district. For many of these businesses owners face not only property loss, but reduced productivity and lost wages. FEMA assistance could take well over a decade.
There is an alternative means for these companies to survive, however. As many of these companies were profitable prior to the misfortune, they probably have invoices outstanding that were in the process of being paid – some at 30, while others at 60 or 90 days. Factoring companies like IFG will assist a company lacking in a financial cushion, and invoice factoring is especially valuable during a crisis or when recessionary pressures affect a business’s economic stability.
