Contact Information: Media Contact: Kristin Gabriel MarCom New Media T: 323.650.2838 E: 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
Invoice Factoring Can Aid Startup Businesses in the U.S.
Startup Businesses Created an Average of 5.5 Jobs per Firm in 2004; This Includes Not Only 4.1 Paid Employee Positions, but Also 1.4 Entrepreneurial Positions
| Source: The Interface Financial Group
BETHESDA, MD--(Marketwire - August 21, 2009) - The Interface Financial Group (IFG), North
America's largest alternative funding source for small business, announced
a new report available on the U.S. Small Business Association Web site
titled the Kauffman
Firm Survey (KFS), providing insight into better understanding American
business startups and their dynamics. Because the U.S. economy relies upon
sustainable economic growth for long-term prosperity, the Kauffman Firm
Survey (KFS) is a panel study created using a stratified random sample of
all startups in 2004 from the Dun & Bradstreet database with follow-up
surveys on these firms for 2005 and 2006.
92 percent of all KFS sample startups were new, independent businesses, and
about 7 percent were purchased from existing businesses or franchises. Of
the KFS sample firms, more than half of the businesses were home-based
businesses between 2004 and 2006, 40 percent operated their business at
rented or leased places, and 5 to 7 percent of them operated at their own
purchased spaces.
These startup businesses created an average of 5.5 jobs per firm in 2004;
this includes not only 4.1 paid employee positions, but also 1.4
entrepreneurial positions. When starting their businesses in 2004, firms in
the KFS sample generated an estimated value of more than $575 million in
revenue. By 2006, the total estimated revenue of KFS sample firms had
increased by 53 percent to $879 million, while employee payroll grew 56
percent between 2004 and 2006.
George Shapiro, chief executive officer of The Interface Financial Group
(IFG), said, "The growth indicated in this KFS study is a good indicator of
the future of our business of factoring. Getting a loan from a traditional
financial institution can be a long, frustrating process, while invoice factoring benefits startup
businesses by advancing up to 90 percent against invoices, providing cash
that covers business expenses such as payroll, or supplies."
Factoring it is the purchase of
financial assets, or receivables. 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. IFG looks at the creditworthiness of
a client's customers and pays within as little as 24 hours.
Factors do not expect to buy 100 percent of a company's receivables, and
there are no minimum or maximum sales volume requirements. 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.
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.
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 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.