SOURCE: The Interface Financial Group
BETHESDA, MD--(Marketwire - Sep 6, 2012) - According to The Interface Financial Group (IFG), North America's largest alternative funding source for small to medium-sized enterprises, a study by the New York Stock Exchange (NYSE) reports U.S. small to medium-sized Enterprise (SME) business loans tallying $1 million or less declined five percent in 2011, while small business loan dollars declined seven percent. According to the report many of the SMEs did not receive the funding needed to start up.
The majority of U.S. small businesses are having a difficult time accessing funding, which many believe is causing a big impact on job creation. More than 170,000 small businesses in the U.S. shut down between 2008 and 2010. (Source: U.S. Census Bureau data.)
For the first time participants of the eight year old survey included 285 U.S. small business owners, along with 340 chief executive officers (CEOs) from companies that are listed on NYSE Euronext markets. Of these, 47 percent said their capital needs were not being met at all, while some said their needs were only being met marginally. Just 21 percent of the respondents said that sufficient capital is available. The survey also found that it is almost twice as difficult for small businesses that are less than 10 years old to access capital versus companies that have been in business for over 25 years.
"Factoring companies are growing, as businesses turn to this alternative financing method. This survey indicates SMEs cannot get the funding required to start a business, or keep their existing businesses in survival mode," said George Shapiro, president and chief executive officer of IFG. "Many experts believe that this lack of access to capital is having a huge impact including the nation's slowdown in job creation and therefore stunting of the country's overall economic growth."
Of the global corporations surveyed, 43 percent of the CEOs said their need for capital is fully met, while 20 percent said they do not have enough.
One of the issues impacting cash flow among SMEs is the fact that they must wait for invoices to be paid -- often up to 90 days. When a business does not get paid right away for delivered products or services, it becomes a challenge for the business to produce new orders. Invoice factoring advances up to 90 percent of the invoice total. IFG looks at the creditworthiness of the client's customers and can provide funding within as little as 24 hours.
IFG's financing solutions include: Spot Factoring, or single invoice factoring, Export Factoring, providing services for companies who export from the United States and Canada; Construction Factoring for contractors; Purchase Order Financing; and Inventory Financing, a solution promoting a company's growth by funding them when they must expand and purchase inventory.
About The Interface Financial Group (www.ifgnetwork.com)
The Interface Financial Group (IFG) is North America's largest alternative funding source for small business, providing short-term financial resources, including factoring services (invoice discounting). The company serves clients in more than 30 industries in the United States, Canada, Singapore, Australia, New Zealand, UK and Ireland, and offers cross-border transaction facilities. With more than 140 offices across North America and over 39 years of experience, IFG provides innovative accounts receivable factoring services and solutions by offering short-term working capital to growing businesses. Single invoice factoring, or spot factoring, is an extremely fast way to turn receivables into cash.
The Interface Financial Group was founded in 1972 to provide short-term working capital to help small to medium-sized businesses grow. The IFG organization operates on a local level, providing clients with local knowledge and experience and business expertise in numerous diverse areas in addition to accounts receivable factoring, including accounting, finance, law, marketing and banking.