Invoice Factoring Can Convert Payments on Terms to Cash Helping Small Businesses Avoid Bankruptcy

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-Of the 25 million small businesses in the U.S. commercial bankruptcies increased by 81 percent, according to new Equifax Inc. report- The Interface Financial Group (IFG), North America's largest alternative funding source for small business believes that small businesses could avoid bankruptcy by using invoice factoring to stay afloat by converting payments on terms to cash on delivery. A recent report from Equifax Inc. stated that commercial bankruptcies among the 25 million U.S. small businesses with less than 100 employees increased by nearly 81 percent from June 2008 to June 2008. The data reveals that there were 10,339 bankruptcy filings in June 2009 throughout the U.S., up from 5,712 a year ago.

said IFG's Chief Executive Officer George Shapiro.

The Interface Financial Group (IFG), North America's largest alternative funding source for small business believes that small businesses could avoid bankruptcy by using invoice factoring to stay afloat by converting payments on terms to cash on delivery.

A recent report from Equifax Inc. stated that commercial bankruptcies among the 25 million U.S. small businesses with less than 100 employees increased by nearly 81 percent from June 2008 to June 2008. The data reveals that there were 10,339 bankruptcy filings in June 2009 throughout the U.S., up from 5,712 a year ago.

Invoice factoring benefits businesses that do not get paid for 30 to 60 or 90 days by advancing up to 90 percent against invoices. IFG looks at the creditworthiness of the client's customers and can fund within as little as 24 hours. The company does not expect to buy 100 percent of a company's receivables, and there are no minimum or maximum sales volume requirements.

A highly effective cash management strategy, invoice factoring has become particularly useful to those small businesses that have been experiencing cash flow problems due to the economy," said IFG's Chief Executive Officer George Shapiro. "Factoring helps leverage the funds that a company expects to have coming in, providing much needed cash to cover payroll, and other business expenses to keep on going."

Accounts receivable factoring differs from traditional bank loans in that bank loans involve two parties, while factoring involves three parties. Banks base their decisions on a company's credit worthiness, whereas factoring is based on the value of the receivables. Factoring is not a loan - it is the purchase of financial assets, or receivables.

IFG looks at the creditworthiness of a client's customers and pays within as little as 24 hours. IFG does not expect to buy 100 percent of a company's receivables, and there are no minimum or maximum sales volume requirements. IFG's professional rates are competitive because each client's circumstances vary, which may have an impact on the fees charged. The program allows choices of invoices to be factored, enabling customers to retain most of their money, while spending the minimum fees to guarantee adequate cash flow.

Standard accounts receivable factoring has been around for more than 4,000 years, while today IFG is finding that single invoice factoring is a popular new tactic which allows companies to factor one invoice at a time. The factoring process begins with due diligence that typically takes one to two business days, and after this has been completed the client is at liberty to offer invoices to IFG for purchase. Upon receipt of invoices, IFG checks the credit of the debtor named on the invoice and makes sure that the sale represented has been satisfactorily completed. Once this is done the debtor is advised of the purchase by IFG and the client receives their funding.

About The Interface Financial Group (http://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 http:invoice factoring(invoice discounting). The company serves clients in more than 30 industries in the United States, Canada, Australia, and New Zealand, and offers cross-border transaction facilities between the U.S. and Canada. With more than 140 offices across North America and over 35 years of experience, IFG provides innovative invoice factoring 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.

IFG 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.

Media Contact:
Kristin Gabriel, MarCom New Media
T: 323.650.2838;

Headquarters: The Interface Financial Group, Inc.
7910 Woodmont Avenue, Suite 1430
Bethesda, MD 20154
T: Toll Free: USA; 877.210.9748
Canada; 877.340.6893

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KRISTIN GABRIEL
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