Factoring Invoices Helps SME's Cope with Slow Payers

Sydney, NSW (PR Wire – 26 February 2013) – The Interface Financial Group (IFG), a growing source of alternative funding for Australian small businesses, announced that it has increased resources to assist Australian small and medium-sized entities (SME's) whose working capital has been adversely impacted by a blowout in payment terms from their customers.   IFG provides short-term financial resources including invoice discounting to SME's in Australia, New Zealand, the UK, Ireland, the United States, Canada, and Singapore.

According to recent data from credit repoting agency Dun & Bradstreet, payment time frames have remained at an average of 52 days from the date of invoicing.  In addition, the Dun & Bradstreet data showed that 62% of accounts were paid after the due date and nearly 70% of the surveyed executives indicated that cashflow would be an issue for their business in the next few months.

David Hechter, chief operating officer for IFG in Australia explains why lining up alternative forms of finance is crucial in light of the payment data. “Small businesses should not be surprised by long payment terms - this is normal when dealing with corporate customers.  However, cash flow can be a competitive advantage for SME's - those that can demonstrate that they have the working capital facilities in place to take on work from big customers are in a better position to win that work.  Those that feel ashamed because they need the finance in the first place will find themselves without the customers because they simply will not be able to prove they can handle the cash flow requirements of taking on a project where invoices are paid on terms.  This is why factoring for small business is on the increase in Australia."

Debtor factoring - which belongs in the family of commercial finance products - 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.

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, NSW2027

T: Toll Free: 1300 957 900