TD Bank surveyed their small business customers asking for the top wishes of the small business owners for 2012. The responses are interesting and provide some insight into many of the issues of 2011.

The bank surveyed 300 customers from Main to Florida, the banks primary US market area. The top response (61%), wish for increased sales for 2012. This has been the number one issue for most small businesses since the beginning of the economic downturn. Sales do appear to be increasing based on other small business surveys but there is much room for improvement and without increased sales there is no growth.

Other wishes for 2012 included eliminating debt, raises for employees, new equipment and/or software and a new or larger facility.

No one knows for sure but 2012 may be a year for growth. Companies that start growing will need capital to assist with cash flow. Invoice factoring can provide needed cash when required for growth in the business. It is simple to obtain and it it is fast providing cash when it is needed.

Jan J. Cunningham
The Interface Financial Group

Recently good economic good news has been hard if not impossible to come by. So it’s surprising that according to the ISM index, manufacturing has been growing for 25 consecutive months. Although experts consider manufacturing to still be weak, at least it is in positive territory.

Concurrently we have seen an increase in the number of small manufacturers that are looking for business financing to support growth or even just to operate their businesses. Their challenge is that few if any financial institutions are issuing business loans. In the meantime, they are bridging their financial needs using accounts receivables factoring.

Accounts receivable factoring helps manufacturing companies by providing an upfront payment for their slow paying invoices. Instead of waiting up to 60 days to get paid, they get an advance from the account receivable factoring company and get immediate use of those funds. The transaction is settled once the customer pays in full.

The big advantage of accounts receivable factoring in this case is that it’s easier to obtain than a conventional business loan. This helps the company bridge their cash flow gap and improve their financial stability. Ideally, this will help them qualify for a business loan later on. In this scenario, The Interface Financial Group would be the ideal solution for these manufacturers since there is no contractual commitment of time so the client is welcome to leave as soon as they qualify for a bank loan or LOC.

Sabeen Ahmed
The Interface Financial Group

The holidays are behind us but for many small businesses, the production demand will not subside alongside the season; instead, with spring will come new construction projects, landscaping endeavors and home renovations. To begin preparing for this surge, businesses can use Factoring to meet their financial needs. Factoring companies such as the Interface Financial Group provide services by advancing working capital based on the value of accounts receivable, or invoices; unlike a bank loan, the focus is not on the credit worthiness of a business but on the financial assets.

How can factoring help your business grow this season? Instead of getting paid on your invoices later on, get paid today by selling your accounts receivable through invoice factoring. If you have a large order of grass seed to send out this spring, why not use factoring to get paid on those invoices now? It increases the capacity for production and presents an opportunity to flourish.

Laura Jojic
The Interface Financial Group

Good news for the construction industry. Construction spending jumped 1.5% in December, over triple the consensus estimate.

This is an indicator that a recovery may have started in the hard hit construction industry. This is good news for the economy as improved construction activity will lead to higher employment and increased supplier activity.

Many sub-contractors will need access to funds to help pay for labor and materials but there continues to be reluctance in the financial industry to lend for construction.

Invoice factoring can play a major role in providing funding for construction activities. Small construction businesses can benefit along with larger businesses from receivables factoring. It is a “use it as you need it” service that can provide fast funding to assist in paying costs during the duration of a project. The Interface Financial Group can provide that funding today!

We see a lot of small businesses that don’t take accounting seriously. If they have money in the bank they assume that they are making money but is this true?

Your accounting whether performed manually, by computer or by an outside accountant is critical to your business. It is essential to be able to produce accurate and up to date financial reports in order to know the status of the business. It will also help with these business functions:

1.) Effective planning

2.) Confidence of suppliers

3.) Detection of possible problems

4.) Internal controls

5.) Financial reports for bank or others

For us to provide invoice factoring services, it is necessary to have up-to-date financial statements along with aged receivables and payables similar to what a bank would request. Having current financials allows us to fund clients quickly and efficiently to provide working capital for the business.

Jan J. Cunningham
The Interface Financial Group

It is the end of the year and you are trying to figure out the status of your business! Unfortunately, trying to drive your business based on only having year end information can take it right into the ditch.

Every small business should have a dashboard with key metrics that are being evaluated continuously so that small (or large) corrective actions can be taken as necessary. It is too late to try and do it at the end of the year.

Each business should be analyzing five to seven metrics each month including:

o Total monthly revenues
o Total monthly expenses
o Number of new customers/clients
o Number of repeat customers/client
o Cash Flow

Each of these, along with two additional chosen metrics, should be compared against the targets projected for each month. This will allow a business owner to take the steps necessary on a monthly basis to guide the business in the right direction. These measurements are critical when in a down economy and having to navigate through narrow streets.

Cash flow is very important to every business. If you determine that cash flow is limited, invoice factoring may provide a short term solution. It is a “use it as you need it” service that is fast and does not require long term contracts or fees. Getting cash when you need it can smooth out the rough spots.

Jan J. Cunningham
The Interface Financial Group

Business loans and lines of credit for small businesses are slowing according to a number of reports in recent weeks as the economy slows. This is not good news for small businesses that have been struggling to rebuild sales and revenues and need capital as growth continues.

There are alternative financing options that will allow a company to finance growth without a loan. IFG Network provides an invoice factoring option whereby a company can sell selected invoices and receive needed cash for working capital. This facility allows a company with receivables to obtain funding to help support growth. The funding can be used to pay employees and suppliers when cash is tight.

This funding source is available to any B2B company that has current receivables. It is a “use it as you need it” service. When working capital is low a portion of receivables can be sold at a discount and cash can be available in 24-48 hours. The service is extremely fast and efficient and only need be used when circumstances require.

The Wall Street Journal is reporting that small businesses are waiting longer for payments from customers as larger companies hoard cash. This may be news to the general public but it is certainly not news to small business owners. This trend began as the economy turned down and it continues today.

The National Federating of Independent Business (NFIB) survey finds that up to 64% of the 850 small businesses the group surveyed last year reported having invoices that went unpaid for at least 60 days, and 20% said delinquencies were getting worse. Nearly all the companies surveyed had less than $5 million in annual gross sales.

These delayed payments are putting small businesses in a cash squeeze which in turn delays hiring, delaying payments to vendors and making it difficult for many companies to meet payroll.

For small businesses that need cash there are a number of alternative financing options available including:

1. Factoring or Spot Factoring

2. Purchase Order Finance

3. Import Export Financing

IFG Network is a company, thou focused on Invoice Factoring or Spot Factoring, can also provide other forms of financing to qualified companies.

In most cases, invoice factoring will provide the necessary short term cash to allow the business to operate but there are instances where other types of financing may be required to meet the cash needs.

With the construction industry beginning to revive, many construction subcontractors will need funding to assist in growing their businesses or with cash flow while working on current projects.

New projects will become available to bid but with payments sometimes taking as long as thirty days to receive, or longer, small construction businesses having cash flow problems may be prevented from taking on new business. Cash flow problems can also affect current projects preventing timely payroll or the purchase of needed supplies.

The Interface Financial Group specializes in providing construction factoring, cash advances with debtor financing. IFG will purchase current progress billing providing cash quickly when it is required. Once a client is setup, this funding can occur within 24-48 hours once the paperwork is received. Having this type of funding service will help even out cash flow and it is available as it is needed.

Jan J. Cunningham
The Interface Financial Group

While securing factoring companies that would process your accounts receivable invoices, just know that it is a relatively simple process. The factoring services company will have a due diligence process that it needs to complete before funds can be transferred to you. They will look at a couple of things: mainly your customers and their credit.

An invoice factoring company will use public databases to research your company looking for priority liens on its assets. If your company has liens from other finance companies or banks, federal and state tax liens or lawsuits and judgments against it, this may affect your ability to factor your invoices as these liens can garnish income your company receives.

The factoring company will then review your customer’s credit using the major credit reporting bureaus just to make sure that they can take a credit risk on them. This is one of the benefits of factoring, as it is the customers whose credit is run, not your credit.

But factoring companies will also focus on you, the owner of the company. Most of this research is to check whether you have any criminal activity in your past and the amount of expertise you have in your respective business or industry.

You should be as cooperative with your factoring company as possible during this process of due diligence and verification. As long as your factoring company receives favorable results from its research, your application will proceed smoothly and quickly. As the client of a factoring company, you should be comfortable with the fact that your factor will have contact with your customers. This is a normal part of the process that provides you access to quick financing.

One quarter into the new year its time for a Small Business Checkup. This is a good time to verify that your business is on target and is meeting the objectives set out in the business plan.

There is no plan? That in itself is a major issue for any small business. It is impossible to know where the business is or is going, measure progress and evaluate the business without having some plan in place. It you do have a plan, what are the objectives that were established for the first quarter of the year? Has the business/owner met the objectives? If not, what corrective action needs to take place to get back on track?

There are many elements to planning effectively and running a small business. One critical element is working capital or cash flow requirements. Has your plan accounted for the necessary working capital that will be required for the next quarter or next year? Does the business have sufficient credit available or access to credit when necessary? If not, what are possible solutions? One viable solution is invoice factoring, the sale of select receivables providing immediate cash when it is required.

Planning for all elements of a business is extremely important and planning for cash is the most important of all. Doing a periodic Small Business Checkup will provide guidance for the coming quarter(s).

Jan J. Cunningham
The Interface Financial Group

Most small to medium size companies will at one time or another suffer from a shortfall in cash. To remedy the short term problem, a company can draw on a line of credit if available, obtain a short term loan, stretch out payments to vendors and act to collect outstanding receivables.

For the small company, many times these options are not available. Invoice factoring can provide a direct solution for the small company. Once established, the company can sell invoices for cash when there is a short term cash flow problem using the service only when required.

By selling some receivables there is now cash available for payroll, supplies, vender invoices etc. Access to cash when it is required can ease the burden for small business.