SMEs Flock to Invoice Discounting Ahead of Holiday Payment Slowdown
Announcement posted by THE INTERFACE FINANCIAL GROUP 11 Nov 2011
Sydney, NSW (PR Wire –11November 2011) – The Interface Financial Group (IFG), a growing source of alternative funding for Australian small businesses, announced that the company offers support to small business owners who are anticipating slower than normal payment behaviour from their customers during the holiday season. IFG provides short-term financial resources includingsingle and batch invoice discountingto companies in Australia, New Zealand, the UK, Ireland, the United States, Canada, and Singapore
The first quarter of the calendar year is historically the slowest period for customer payments driven by the challenges of Accounts Payable staff going on leave orapprovals for payment being help up until management returns from holiday. It is not uncommon for invoices that have been generated in December to only be paid in February or March as a result of these delays.
David Hechter, chief operating officer for IFG in Australia said that small businesses find this period extremely challenging as a result of slow payments. “Small business owners would like to be using the holiday period to relax with their families; the reality, however, is that many of them will be anxious about cash flow because of slow payments. It is incredibly stressful and frustrating when they cannot contact their customers' Accounts Payable area to confirm when invoices will be paid. As a result, we see more and moreSME's trying to sort out their cash flow before Christmas by setting up invoice discounting and factoringfacilities in November and early December.”
Bydiscounting invoices through one of Australia's factoring companies, SME's can realisesuperior benefitsas compared to conventional bank loans.Invoice discounting allows a small business to use the facility only as required without having to be locked in for a particular term. In addition, a factoring or invoice discounting facility can grow in line with the value of the accounts receivable.
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 invoicesto one of Australia's factoring companies. Withinvoice discounting, 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 includinginvoice 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.
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 otherfactoring companiesinAustralia. The IFG team has substantial business experience and expertise in numerous diverse areas, including accounting, finance, law, marketing, banking, etc.
Headquarters:
The Interface Financial Group
Suite 1, Level 3, 179 New South Head Road
Edgecliff, NSW 2027
T: Toll Free: 1300 957 900