Australian SME's Get the Best of Both Worlds with Banking and Debt Factoring
Sydney, NSW (PR Wire – 29 September 2012) – The Interface Financial Group (IFG), a growing source of alternative funding for Australian small businesses, announced that the company continues to provide finance to Australian small and medium-sized entities (SME's) who already have a bank loan but cannot increase the amount of funds that can be drawn. IFG provides short-term financial resources including the financing of invoices for small business to companies in Australia, New Zealand, the UK, Ireland, the United States, Canada, and Singapore
As the Australian banking sector tightens its credit criteria, many SME's with existing bank loans are finding it challenging to either maintain this facility or increase the size of the facility when required. This can lead to growth challenges if the directors of SME's only focus on the funding that is available from the bank as opposed to the alternatives that exist in the Australian marketplace. Fortunately for SME's, the debt factoring finance providers have a long history of working with the banks to help shared clients achieve their financial objectives and the existing economic environment has seen an improvement in this cooperation.
David Hechter, chief operating officer for IFG in Australia explains why this cooperation is improving from the banking sector. “The key issue that finance providers have in sharing a client is who has the security priority over the assets of that business. It used to be that banks did not want to give up any security to a different finance company, but they now realise that the advantages of invoice factoring for their clients outweigh the risks - specifically, the client has greater access to cash flow that improves the business' ability to repay the bank's loan. Also, many banks put a low security value on receivables so there is less reluctance to provide these as security to an invoice factoring or invoice discounting financier."
Invoice factoring finance involves the purchase of accounts receivable by a factoring company which provides cost effective business funding and allows small businesses to obtain the working capital required to support their business growth. With the financing of invoices,a credit facility can grow in line with the value of the accounts receivable as opposed to being capped when property is the security.
Invoice financing leverages the SME's strong customer base which is an often over-looked asset by the commercial banking sector. With selective invoice financing from The Interface Financial Group, 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 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 Australia.The IFG team has substantial business experience and expertise in numerous diverse areas, including accounting, finance, law, marketing, banking, etc.
The Interface Financial Group
Suite 1, Level 3, 179 New South Head Road
T: Toll Free: 1300 957 900