Invoice Financing on the Rise as Solution to Cash Flow Challenges

Sydney, NSW (PR Wire – 24 October 2011) – The Interface Financial Group (IFG), a growing source of alternative funding for Australian small businesses, announced that the company offers support to small businesses facing who may have been unable to tap the banking sector for a sufficient line of credit to address working capital requirements. IFG provides short-term financialservices including single invoice factoring to companies in Australia, New Zealand, the UK, Ireland, the United States, Canada, and Singapore.

According to The Institute of Factors and Discounters of Australia and New Zealand, invoice financing (comprising factoring and invoice discounting)in the quarter ended June 2011increased 7.3% as compared to the previous year. The results for the June quarter also showed a healthy 6.1% increase on the activity levels from the March 2011 quarter.

David Hechter, chief operating officer for IFG in Australia said that small business owners were becoming more comfortable with debtor factoring as a mainstream way of managing cash flow for business growth. “Invoice financing is a very mature service internationally, but many Australian SME's are still unaware of the benefits that this form of credit can bring to their business. As the time frames for payments - particularly from larger corporates - continues to blow out toward 60 days, it is not surprising to see small businesses reach out for a flexible form of finance that can help bridge their businesses from a cash flow perspective.”

Factoring and invoice discounting facilities involves the purchase of accounts receivable which provides superior benefits to small businesses as compared to loans. These debtor factoring products allow a small business to use the facility only as required without having to be locked in for a particular term. In addition, a factoring facility can grow in line with the value of the accounts receivable as opposed to having a maximum limit linked to the asset value of physical collateral such as property.

Factoring belongs to the family of debtor finance products where a company can use one of its most valuable assets – its strong customer base – as a source of cash flow by selling these invoices. With invoice factoring, there are no minimums, no maximums, no long-term commitments and no lengthy application process.

About The Interface Financial Group (www.ifgnetwork.com.au)

The Interface Financial Group (IFG) provides short-term financial resources including commercial factoring (invoice discounting). IFG launched the Australia operation in 2006 following the success of its New Zealand businesses which commenced in 2004. IFG's innovative products also includes spot factoring – the purchase of a single invoice or number of invoices. IFG does not require the whole debtor book to be financed.

The IFG Network is the funding arm of The Interface Financial Group providing capital and transactional support to IFG's international office network. IFG has grown to over (150) international offices in Australia, UK, the United States, Canada, Ireland, New Zealand, and Singapore. Each IFG office is managed on a local level, providing immediate service to clients with local knowledge and experience. This makes IFG unique to all other factoring companies in the Australia. The IFG team has substantial business experience and expertise in numerous diverse areas, including accounting, finance, law, marketing, banking, etc.

W: http://ifgnetwork.com.au/

Headquarters:
The Interface Financial Group
Suite 1, Level 3, 179 New South Head Road
Edgecliff, NSW 2027
T: Toll Free: 1300 957 900