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
The Interface Financial Group Offers Aid to Small Businesses Losing Funding Due to CIT Group Bankruptcy
IFG Offers Short-Term Financing to Fuel Small and Medium-Sized Businesses With Necessary Cash Flow
BETHESDA, MD--(Marketwire - November 3, 2009) - The Interface Financial Group (IFG), North
America's largest alternative funding source for small businesses,
announced that the company stands ready to aid businesses who
experience loss of funding due to the CIT Group, Inc. (CIT) reorganization.
CIT provides business loans, financial services and financing solutions
worldwide and is one of the largest sources for providing working capital
to small business and medium-sized businesses in the United States. The
company announced a prepackaged plan of reorganization on November 1, 2009 to
restructure the Company's debt and streamline its capital structure. IFG
provides short-term financial resources including single invoice factoring to companies
in the United States, Canada, Australia, New Zealand, and Singapore.
Retail analysts are predicting that customers of CIT, small retailers and
suppliers, could have a difficult time obtaining financing after the
holidays. According to the SCORE association (www.score.org) there are an
estimated 29.6 million small businesses in the United States that employ
more than half of the country's private sector workforce.
"It is small and medium-sized companies that rely on CIT for short-term
financing. We hope that filing for Chapter 11 will help CIT to go through
reorganization quickly so that the company can continue fueling small
businesses with necessary cash flow," said George Shapiro, chief executive
officer, The Interface Financial Group, Inc. "In the mean time, IFG is here
to provide short-term solutions to assist those in need of funding."
CIT disclosed that it expects the in-court process to be completed by the
end of the year and none of its operating subsidiaries, including CIT Bank,
its business segments or international business operations, are part of the
filing.
Invoice factoring is not a loan, rather it is the purchase of financial
assets, or receivables, from a factoring company. 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. With invoice factoring, there are no minimums, no
maximums, no long-term commitments and no lengthy application process.
Factoring has been around for more than 4,000 years, and today IFG is
finding that single invoice factoring is a popular new tactic allowing
companies to factor one invoice at a time. 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.
Bank loans involve two parties, while invoice
factoring involves three parties, and while 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 a company's
receivables. IFG looks at the creditworthiness of a client's customers and
once approved, 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.
Factoring starts 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 recent private label factoring products introduced by IFG
include Export Factoring, providing factoring services for companies who
export from the United States and Canada; P.O. Funding to finance purchase
orders when a company receives a purchase order and needs to purchase
supplies to fulfill the order; and Inventory Financing, a solution
promoting a company's growth by funding then 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 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.