BETHESDA, MD--(Marketwire - March 19, 2010) - The Interface Financial Group (IFG), North America's largest alternative funding source for small businesses, announced that the company's alternative financing solutions including invoice factoring can assist small businesses who are facing the impending costs surrounding the health care reform bill.
The issue surrounding health care reform in the United States centers on questions about whether there is a fundamental right to health care, who should have access to health care, and the sustainability of expenditures that have been rising faster than the level of inflation and the growth in the U.S. economy. Sixty two percent of all personal bankruptcies in the U.S. cite that medical debt is the biggest factor. The United States spends a greater portion of total yearly income in the nation on health care than almost any other United Nations member.
According to the Institute of Medicine of the National Academy of Sciences, the U.S. is the "only wealthy, industrialized nation that does not ensure that all citizens have coverage."
Small business owners have to consider the health care bill's impact on their bottom line financially. Many experts believe that the bill is loaded with mandates and expensive punishments for those who do not follow the rules. The legislation would force small businesses with 50 or more employees to provide health insurance, whether they can afford it or not. The penalties are $2,000 per employee, and Congress is also trying to extend this to all part-time employees.
Furthermore, a new annual $6.7 billion tax on health insurance plans would fall on health insurance companies based on their market share -- the larger an insurer's market share, the higher its share of the $6.7 billion it has to pay. Insurance companies would most likely need to pass this along to their customers via increased costs annually per family. Larger businesses and unions negotiated a deal that exempts them from this tax, so it is basically small businesses that this tax will affect.
"Many small business owners are worried. The officials are claiming that the $900 billion bill will lower costs, but many people believe it's about helping everyone except small businesses," said IFG's Chief Executive Officer George Shapiro. "Will small businesses and their employees be able to keep the insurance coverage they currently have? Small employers now will be forced to buy plans that meet standards determined by the government. For self-employed and small businesses, costs will go up in order to meet these new expensive coverage requirements."
Regardless of what the outcome is insofar as the health care bill, small businesses must be prepared. One way to cover these costs for employees, and avoid penalties, is to begin a program of invoice factoring to cover the costs. Factoring is the one solution that will pay in as little as 24 to 48 hours.
The economic circumstances during the last year has been very tough for small business owners, so these times call for creative solutions to help a small business run smoothly. In order to sustain and grow, businesses need some cash on hand. When outstanding invoices stack up, single invoice factoring, also known as spot factoring, is one tactic that many companies have discovered can help them get by.
Invoice factoring, or spot factoring, enables companies to get short-term working capital and improve cash flow and grow their businesses. Since most companies don't get paid immediately for delivered products or services, factoring benefits businesses that do not get paid for 30, 60 or 90 days by advancing up to 90 percent against the company's invoices. A factoring company like The Interface Financial Group (IFG) purchases selected invoices at a discount. Factoring companies first typically look at the creditworthiness of the client's customers, and they do not expect to buy 100 percent of a company's receivables, so there are no minimum or maximum sales volume requirements.
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, Singapore, 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.
Contact Information:
Media Contacts:
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;
T: Toll Free: Canada -- 877.340.6893