Economic Recovery Fueling Growth for Interface Financial Group
Small businesses turning to alternative financing after the bank says "No".
- Bethesda-Frederick-Gaithersburg, MD (1888PressRelease) May 20, 2011 - Government reports continue to show the U-S economy is slowly expanding and that small businesses, the backbone of the economy for job creation, want to expand. However many of the tens of thousands of small businesses that weathered the recession must now face a new challenge: they can't get the funding to hire new employees and purchase inventory because banks are still reluctant to loan money.
"Our franchisees are receiving unprecedented numbers of calls from small business owners looking for help and we are opening new franchises in record numbers to serve the small business community," says David Banfield, president of The Interface Financial Group (IFG). Banfield announced during IFG's 9th annual franchise conference that seven new franchises in the US, plus several more in Canada and Europe will open by mid-summer. More applications are being reviewed.
IFG is an international provider of short-term working capital via invoice discounting. IFG franchises are the next stop for many small businesses that are told "no" by their bank
"We provide a service that is vital to the survival of small businesses as well as a way for corporate workers to reinvent their careers, take charge of their lives and help their communities, adds Banfield.
How it Works
As an invoice discounter, IFG franchisees purchase a percentage of their clients' verified receivables and provide them with access to instant capital 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.
Invoice discounting is hugely popular among countries in the European Union and is a regular practice with large enterprises in the United States. It is gaining traction amongst small businesses in the US because it is flexible and can be used as needed and repeated.
"Traditional banks usually want businesses to be open for several years, be profitable and have an accepted businesses model to get a loan," says Banfield. "However many new small businesses that are ready to expand and keep the recovery going don't qualify on those levels. Small business owners are forced to look at alternatives and IFG is there to help."
IFG has been established for 39 years and is consistently ranked one of the top franchises among Entrepreneur magazine.
The State of Small Business in the United States:
• Small firms accounted for 65 percent (or 9.8 million) of the 15 million net new jobs created between 1993 and 2009.
Much of the job growth is from fast-growing high-impact firms, which represents about 5-6 percent of all firms and are on average 25 years old. - Source: U.S. Dept. of Labor, Bureau of Labor Statistics, Business Employment Dynamics; Advocacy-funded research by Zoltan Acs, William Parsons and Spencer Tracy, 2008
• Small businesses rely heavily upon owner investment and bank credit, averaging about $80,000 a year for young firms. Startups rely about equally on owners' cash injections into the business and bank credit; young firms receive about three-quarters of their funds from banks via loans, credit cards, and lines of credit. One-tenth of startups and about a third of young firms do not use capital injections. - Source: Kauffman Foundation, An Overview of the Kauffman Firm Survey: Results from the 2004-2008 Data, (Alicia Robb, E.J. Reedy, Janice Ballou, David DesRoches, Frank Potter, Zhanyun Zhao), May 2010.
About the Interface Financial Group (www.interfacefinancial.com)
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 dot com.