According to the Association for Enterprise Opportunity (AEO), a microbusinesses is a company with fewer than five employees, and these are the businesses that are facing a difficult time this year thanks to the economic downturn. However, our nation’s microbusinesses are actually quite a bit better structured to endure difficult times, than their larger businesses. And many of these smaller businesses have already discovered tactics like accounts receivable factoring, to help start their business and sustain them.
Lean operating styles make it easier for a microbusiness to survive, so the AEO believes they will end the year in the best position for new business growth. Among the many trends, it is those people who get laid off that tend to start small microbusinesses during economic downturns. They need cash in hand to make ends meet, so for the a growth spurt of new single-person businesses. This is referred to by the Census bureau as nonemployer firms, defined as companies with no paid employees other than the business owner(s).
Invoice factoring has been around for many years, and is often most used when times are tough like today. No matter if your company is a moicrobusiness or a regular small business with more than five employees, factoring is an excellent way to keep cash on hand, rather than waiting for 30, 60 or 90 days for your clients invoice’s to be paid.
To learn more about factoring, go to www.ifgnetwork.com.
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