After a study of small to medium businesses in Australia, it was discovered that the access to business was a block to growth. Lack of alternative funding stopped companies expanding. Luckily the Interface Financial Group continues to support small and medium businesses by offering alternative funding such as invoice financing and factoring.
The IFG also provides short term financing such as invoice discounting across the globe.
David Hechter, chief operating officer for IFG in Australia said that small businesses will need to search for alternative forms of finance. “The banks have been very clear about the impact that the debt crisis in Europe is having on their own access to wholesale funding. As funding becomes more scarce, the credit criteria for the riskier segments – including small business – will continue to tighten. Small business in Australia needs to face up to this challenge and open up to the myriad of factoring companies that specialise in helping this segment with working capital finance.”
Invoice discounting allows SMEs to release capital tied up in invoices so that they have the cash to move forward, whether that’s to pay staff, pay bills or purchase new equipment, machinery and vehicles, and of course materials for production.
Invoice discounting belongs to the factoring family, a range of financial solutions which uses the best sources companies can have, their clients. Invoices are traded in for the capital and this is released back to the company, way before the pay day is due. This allows companies to move forward and expand, rather than have to wait up to 90 days for payment.
So if you are struggling financially but have invoices to send to customers, consider using invoice discounting and factoring to gain some capital. You will wonder why you never tried factoring before. Take time to contact a Factoring Lender for a quote.