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Record demand for invoice discounting

Small businesses are the engine of the economy. In the USA small businesses continue to be the best area where new jobs are created. Many small companies can’t take advantage of growth due to the lack of funding from the banks in the form of business loans.

A Survey conducted by the National Federation of Independent Businesses shows that small businesses are lacking in optimism when it comes to funding. Generally banks won’t entertain small businesses because of the lack of capital they hold. The lack of working capital holds these small companies back when it comes to expansion.

So, what are the options? Well, most small businesses are now turning to Invoice Discounting, which allows them to get their hands on capital within 24 hours, meaning they can pay the bills, employ new staff and purchase any equipment which may aid the company in its growth. It’s a great way of providing short term working capital and factoring lenders, if the company requires, can continue to chase clients for payment.

There are an incredible 27 Million small businesses in the USA. Of those companies about 6 million have 1 to 4 people employed as part of the company.

Factoring lenders have seen a record demand for factoring services this year in the USA. It’s something small businesses can really utilise and gain capital quickly and efficiently. The benefits of using invoice discounting or factoring is that it’s and extremely quick turn around. There is not waiting for decisions from the bank, and compared to the interest companies could pay on business loans, using a factoring lender is a tiny cost.

There is probably more knowledge amongst small businesses in the USA about factoring and alternative funding solutions. Back here in the UK its difficult to educate so many people about options they have in terms of business funding.

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