Cashflow Tight for SME's as Big Companies Slow to Pay

Sydney, NSW (PR Wire –15August 2011) – The Interface Financial Group (IFG), a growing source of alternative funding for Australian small and medium enterprises (SMEs), announced that the company offers support to SMEs that are faced with cash flow challenges caused by the tardy invoice payment behaviour of their large company customers. IFG provides short-term financial resources includinginvoice discountingto companies in Australia, New Zealand, the UK, Ireland, the United States, Canada, and Singapore.

Recent research from credit reporting agency Dun & Bradstreet highlighted that large companies - defined as businesses employing more than 500 people - took over 56 days to pay outstanding invoices. The national average was around 53 days during the June quarter, demonstrating that large companies are exacerbating the already tough trading conditions for Australia's SME sector. As a result, small businesses are increasingly taking up debtor factoring services offered by specialist non-banks who focus on this important, but often under-served segment of the Australian business community.

David Hechter, chief operating officer for IFG in Australia said thatSMEs in Australia are becoming more comfortable with using debtor factoring services which have much higher penetration overseas. "For many years, factoring was seen as a service that was only used by companies who were going out of business. The market in Australia, however, has matured significantly and is now recognised as simply a smart management tool for growing businesses. Small businesses also used to be concerned about what their customers would think once they found out that their invoices were part of a factoring facility.The market has now evolved to the point where customers are more worried if theirSME suppliers are NOT using a factoring service because then they may not be able to cope with thelarge company'spayment terms, which are now close to 60 days."

Factoring allows SMEs to raise the working capital they require to grow their businesses despite the challenges of having customers who are slow to pay their invoices.With the average time frame for invoice payment stretching out to 60 days in Australia, many SME's are traking advantage of the benefits of invoice factoring. Factoring can be used across a wide range of industriesincludng transportation, labour hire, manufacturing and even construction.

Invoice factoring is structured as the purchase of financial assets, or receivables, from the SME to afactoring company. Factoring belongs to the family of debtor finance products where a company can use one of its most valuable assets – its credit worthy customer base – as a source of cash flow. With invoice factoring, there are no minimums, no maximums, no long-term commitments and no lengthy application process.

About The Interface Financial Group (http://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 orbatch of invoices. IFG does not require the whole debtor book.

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 companiesin 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