Growing Small Businesses Have to Get Creative with Financing Options in 2012 Says Interface Financial Group





Bethesda, MD (Press Release – December, 2011) – For small businesses, 2012 looks like a doozy. Despite predictions of an easing recession overall, the outlook for small business growth is discouraging.

  • The National Association for Business Economics predicts sluggish growth (just 2.4 percent.)
  • Despite the growth, high unemployment rates will continue.
  • The National Federal of Independent Businesses shows while business owners are feeling marginally better about the year ahead, they are most concerned about slow sales.
  • Only nine percent (9%) plan to hire more workers; 12 percent (12%) are considering reducing staff.

These forecasts are sending business owners into what could be called a hiring and growth paralysis. While the small business may now be able to get a bank loan, business owners are reluctant to risk hiring because with the additional personnel comes salaries, health insurance, sick leave, 401k contributions, and the list goes on.

And even though banks are starting to ease their restrictive loan policies, this grim outlook means many businesses are still hesitant to make long-term financial commitments despite growth opportunities that are knocking at their door.

That is why alternative financing companies like The Interface Financial Group are prepared to come to the aid of small businesses that need money to grow, but aren’t ready or able to commit to a long-term loan with their bank.

IFG has already experienced strong growth during the Great Recession, opening 20 franchises in the past few months, and it expects that to continue to add locations as small businesses demand local access to quick, low-risk financing.

“IFG offices around the country are ready to help small businesses with the costs of staffing and inventory in the New Year if the business owner needs access to cash quickly or if bank loans aren’t available,” says David Banfield, president of The Interface Financial Group.

How it Works

IFG is an international franchise whereby franchisees provide much-needed short-term working capital through invoice discounting, also often referred to as spot factoring. It’s not a loan and IFG franchisees DO NOT lend money. IFG franchisees purchase a percentage of their clients’ verified invoices at a discount. The small business client receives instant cash (capital) for the invoices within 2 -4 business days. Once the invoice is paid to IFG by the client’s customer the transaction is completed. This form of short-term financing offers small business owners the opportunity to access cash quickly without having to wait for their outstanding invoices to be paid.

“The fact that this unique service comes in a franchise format means that clients are serviced personally in their own local environment-clients actually do business with the ‘decision maker’ and so transactions are completed quickly,” says David Banfield, president of The Interface Financial Group. “We offer a ‘use it as you need it’ approach to financing and so there is no permanent commitment. The funding is transactional, not a revolving loan, so the business owner can repeat the process when cash is needed.”

IFG has been established for 40 years and is a major player in funding small business needs in the U.S. and six other countries through their franchise format model. IFG has more than one hundred locations in North America and is consistently ranked one of the top franchises among Entrepreneur magazine.

About the Interface Financial Group

The Interface Financial Group (IFG) is North America’s largest alternative funding source for small business. IFG provides short term working capital funding in the form of a unique Invoice Discounting service. The company serves clients in the manufacturing, service and construction sectors. Interface operates from a base of more than 150 franchise offices in Australia, Canada, New Zealand, Singapore, the United Kingdom, The Republic of Ireland and the United States. IFG’s innovative Invoice Discounting service is a fast and easy way for small businesses to turn receivables into cash. For more information visit: www.interfacefinancial.com or contact IFG at 800.387.0860, dtb@interfacefinancial.com.

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