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“Services provided by IGF allowed us to capitalize on significant growth opportunities over a short period of time; tripling our workforce and increasing our revenue 10 fold”

Carol Craig
President,
Craig Technologies

SMALL BUSINESS FACTORING

a brief history of invoice factoring and its uses in today's business environment

In today's world of just-in-time deliveries, time is of the essence in fulfilling orders. For the small business this can
necessitate short term, or bridge, financing in order to meet delivery deadlines. .

While there are many challenges that face the small business: insufficient cash flow is the number one reason
85% of small businesses fail within their first five years. The faster your sales grow, the more acute this cash
flow problem becomes. There are many occasions where cash flow problems can slow business growth: expanding
operations or locations, meeting increased payroll to meet additional orders, adding inventory, acquiring new equipment,
and increasing marketing efforts can all be negatively impacted by a lack of timely cash flow.

If you find yourself in a situation where your business is not able to take advantage of growth opportunities due to a
lack of cash flow, factoring is an approach to the problem you should consider. Here's a basic conceptual overview
of how it works. You inform IFG Network of the invoice(s) you wish to factor. IFG Network does a credit report on the
companies your invoices are made out to. Within 24 hours you have the vast majority (between 80 and 97%) of your
invoice deposited in your account. Your cash flow problems are solved. Note: you get the balance remaining on the
invoice, less IFG Network fees and discount, upon payment of the invoice by the client.

Of course, there is some legal language dealing with spot or invoice factoring for small businesses, factoring only
works on business to business sales (not business to consumer sales) and the exact percentage of funds
advanced to you by IFG Networks is determined by who your clients are and how good their credit is, but essentially
factoring works just as described.

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