Receivables Financing Rescues SME's from Slow Customer Payments
Announcement posted by The Interface Financial Group 23 Jul 2012
Sydney, NSW (PR Wire -24 July 2012) The Interface Financial Group (IFG), a growing source of alternative funding for Australian small businesses, announced that the company offerscash flow assistance to small business owners who are struggling with the increasingly slow payment behaviour of companies in the Australian market. IFG provides short-term financial resources including single invoice factoring to companies in Australia, New Zealand, the UK, Ireland, the United States, Canada, and Singapore.
According to data from credit research and collections company Dun & Bradstreet, the number of payments that were made within the typical 30-day term period declined by 16.5 per cent in the June quarter as compared to the previous one. Not surprisingly, small businesses (with between one and five employees) were responsible for the biggest deterioration in trading terms with payment timeframes increasing by over 2 days to 53.2 days.
This puts small business survivalat risk as more suppliers demand quicker payment. David Hechter, chief operating officer for IFG in Australia said that small business owners need to find new ways to accelerate their cash flow. "Small businesses in Australia are merely matching the time frames for their supplier payments with that of their own customer invoices - after all, SME's with large corporate customers are familiar with payment time frames exceeding 50 days. However, with more and more suppliers to small business demanding quicker payments - even Cash on Delivery in some instances - we are seeing an increase in demand for Receivables Financing to accelerate their cash flow."
Receivables financing - including invoice discounting and factoring - allows SME's to obtain a source of working capital credit by unlocking the cash trapped in unpaid invoices. These invoices represent an under-utilised financial asset which is valued by specialist financiers who can assess the credit of the customers who are ultimately responsible for paying the invoices.
These cash flow solutions allow a small business to use the facility only as required without having to be locked intoa long-term contract. In addition, the advantage of these types of business funding solutions is that the facility can grow in line with the value of the accounts receivable. With invoice 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 including invoice 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 funded.
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 Australia. 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