February 19th, 2008 | 
Author: 
Kristin Gabriel asked:
The National Federation of Independent Business and its Research Foundation collected data in 2006 saying 90 percent of business owners who wanted credit got it. Times have changed… now there is a more recent survey from NFIB’s research division stating the demand for small-business credit in 2010 remains weak. The numbers are up by about 7 percentage points from 2009. 52 percent of those polled said they did not even bother to try to borrow money in 2010. This is yet one more reason why small businesses today are finding alternative financing such as factoring.
The report indicated the change in momentum from constantly increasing competition and access to credit to an abrupt freeze, if not direction reversal, is tied to the current confusion exhibited by many owners and analysts when assessing small-business credit conditions.” As any small business owner will tell you, a lack of sales is worse than lack of access to credit. Businesses have started to look to other strategies such as factoring, to sustain and grow, until economic growth improves. Invoice factoring enables a company to receive cash in as little as 24 to 48 hours for outstanding invoices that otherwise may not be paid for 30/60 or 90 days.
Another report states that the economy generated only 36,000 net new jobs, and our unemployment rate dropped sharply in January 2011. The numbers are down to nine percent — the lowest level in the last two years. Although many other economic indicators point to a strengthening economic recovery, this report proves how job growth remains weak. Aanother survey from CareerBuilder.com stated many businesses are not going to be making any changes to their staff in 2011. Around 1,350 firms with less than 500 employees were polled, and its was found that 64 percent of the hiring managers interviewed said they plan to keep their employee levels the same in 2011. 21 percent of the businesses stated they had plans to add full-time employees.
Small businesses need to think carefully about this year’s financial strategies in order to sustain and grow. Every small business is different and has unique needs, so there is rarely one solution that works for everyone, but factoring is one financial strategy that does seem to work for everyone. In choosing the right working capital finance model for your business, there is one big question to ask yourself. How far out do your customers pay their invoices. If the date of invoice is 60 or 90 days out, then invoice factoring could be a great tactic for your business, which could get paid within 24 hours. Use those funds to buy supplies, do more business. Many owners of small businesses read the latest business and economic reports, watch trends, and they always figure out ways to beat the odds, including the use of alternative financial tactics including factoring.
Payroll Factoring
The National Federation of Independent Business and its Research Foundation collected data in 2006 saying 90 percent of business owners who wanted credit got it. Times have changed… now there is a more recent survey from NFIB’s research division stating the demand for small-business credit in 2010 remains weak. The numbers are up by about 7 percentage points from 2009. 52 percent of those polled said they did not even bother to try to borrow money in 2010. This is yet one more reason why small businesses today are finding alternative financing such as factoring.
The report indicated the change in momentum from constantly increasing competition and access to credit to an abrupt freeze, if not direction reversal, is tied to the current confusion exhibited by many owners and analysts when assessing small-business credit conditions.” As any small business owner will tell you, a lack of sales is worse than lack of access to credit. Businesses have started to look to other strategies such as factoring, to sustain and grow, until economic growth improves. Invoice factoring enables a company to receive cash in as little as 24 to 48 hours for outstanding invoices that otherwise may not be paid for 30/60 or 90 days.
Another report states that the economy generated only 36,000 net new jobs, and our unemployment rate dropped sharply in January 2011. The numbers are down to nine percent — the lowest level in the last two years. Although many other economic indicators point to a strengthening economic recovery, this report proves how job growth remains weak. Aanother survey from CareerBuilder.com stated many businesses are not going to be making any changes to their staff in 2011. Around 1,350 firms with less than 500 employees were polled, and its was found that 64 percent of the hiring managers interviewed said they plan to keep their employee levels the same in 2011. 21 percent of the businesses stated they had plans to add full-time employees.
Small businesses need to think carefully about this year’s financial strategies in order to sustain and grow. Every small business is different and has unique needs, so there is rarely one solution that works for everyone, but factoring is one financial strategy that does seem to work for everyone. In choosing the right working capital finance model for your business, there is one big question to ask yourself. How far out do your customers pay their invoices. If the date of invoice is 60 or 90 days out, then invoice factoring could be a great tactic for your business, which could get paid within 24 hours. Use those funds to buy supplies, do more business. Many owners of small businesses read the latest business and economic reports, watch trends, and they always figure out ways to beat the odds, including the use of alternative financial tactics including factoring.
Payroll Factoring
About Wade Henderson
Wade Henderson: Domestic and International Business Finance since 1995 specializing in challenge situations. "We prefer to find a way to get your loan done as opposed to finding a reason to turn it down.” Connect with me on Google+
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