While the Administration Plans to Remedy Regional Bank Loans Factoring Solutions Continue to Save Small Businesses

BETHESDA, MD--(Marketwire - October 23, 2009) - The Interface Financial Group (IFG), North America's largest alternative funding source for small business, today commented on the news regarding the Obama administration's plan to assist small businesses in applying for loans, as well as U.S. House of Representatives legislation toward increasing the ceiling on federal government loan programs. IFG provides short-term financial resources including invoice factoring to companies in the United States, Canada, Australia, and New Zealand, and offers cross-border transaction facilities between the U.S. and Canada.

From additional loan increases outlined in the House bill, to redirecting unspent money from the Treasury's Troubled Asset Relief Program (TARP), to providing capital to communities and regional banks, the Obama administration has committed to aiding struggling small businesses.

"As the tight credit markets have continued for the last year, even a fast track plan may be too late to save some small businesses that have been critically damaged by the economy," said George Shapiro, chief executive officer, The Interface Financial Group, Inc. "However, we are seeing many businesses that have managed to stay in business and benefit from the working capital garnered from invoice factoring for small business in the face of these credit constraints at mainstream banks."

Factoring is not a loan -- it is the purchase of financial assets, or receivables, and it 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.

Most of the country's larger banks have already benefited from TARP, but many smaller banks didn't benefit from the program, and despite signs that the credit markets have eased considerably from a year ago, access to capital for many small businesses is still restricted. The proposed House legislation would increase loan limits that are provided to start-ups and small businesses by the Small Business Administration, the maximum size of so-called 7(a) loans would increase to $5 million from $2 million. The top size of the SBA's 504 loans would rise to $5.5 million from $1.5 million. Under this proposed legislation the maximum size of SBA microloans would increase to $50,000 from $35,000.

Interface founder John Sheehy long ago acknowledged that small business owners have a difficult time in attracting conventional funding, and he created the Interface organization with the specific purpose of servicing the needs of that small business marketplace. Today, some 35 years later, IFG continues to service that same market and is now the largest alternative funding source for small business in North America. Interface has also grown to service small business needs in Canada, Australia, and New Zealand, and is evaluating other international opportunities.

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.

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.

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 (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, New Zealand and Singapore, 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.

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