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Lack of Cash Flow Leading to Increased Small Business Failure

Announcement posted by THE INTERFACE FINANCIAL GROUP 28 Aug 2011

Entrepreneurs Turning to Invoice Discounting to Survive Challenging Economy
Sydney, NSW - (PRWire - 29 August 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 difficult economic environment. IFG provides short-term financial resources including invoice discounting to companies in Australia, New Zealand, the UK, Ireland, the United States, Canada, and Singapore.

Recent research from credit reporting agency Dun & Bradstreet highlighted that business failure rates increased by 25 percent in the quarter ended June 2011 and cited cash flow as the major reason for the distress. According to the research, nearly 3,000 companies failed during the quarter putting Australian companies on pace to surpass the 2010 total. Small businesses were particularly susceptible given their weaker balance sheets give them fewer resources to withstand the challenges from a short-term downturn in business or slow customer payments.

David Hechter, chief operating officer for IFG in Australia, said that SMEs in Australia must take a proactive approach to ensuring that they have access to sufficient working capital facilities to avoid becoming distressed in the current economic climate. "Small businesses that we speak to are under greater pressue from slower customer payments, a downturn in the retail component of their business and the need to meet tax obligations with the ATO. Whilst some believe that they can merely trade out of these challenges by increasing sales, the prudent entrepreneurs are also establishing invoice discounting facilities just in case they need to tap into some additional cash flow when they need it most. These business owners realise that any costs associated with using this financeare more than offset by having the peace of mind to confidently address their cash flow challenges."

Invoice discounting is used by SME's across a wide range of industries including transportation, labour hire, manufacturing and even construction. Invoice discounting and related products such as invoice factoring are structured as the purchase of financial assets, or receivables, from the SME to a factoring company.

Invoice discounting 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 discounting, 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 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 include spot factoring the purchase of a single invoice or batch of invoices. IFG does not require the whole debtor book to be financed.

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.

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