Credit Crunch and Factoring

How is the current credit crunch affecting the invoice factoring industry? Business is booming!  We are seeing reports from Australia factoring companies and services in the UK that are showing phenomenal growth. 

We are also hearing things from contacts in California factoring, New York invoice factoring, and Texas factoring companies about the excellent growth rates.

Business deals are also happening which we have been reporting on our blog here. I just read one about Italian factoring firms:

Migdal Insurance (TASE: MGDL) has obtained a stake in invoice financefirm Peninsula Financial Ltd., as financial investment. Migdal will put additional capital into the firm to finance Peninsula’s activity and growth in exchange for a 20% stake.

Another business that is growing is the credit card industry. We’ve also been hearing that business credit card applications are up and small business owners are struggling to find additional financing resources.  The shortage of good financing is expanding markets and creating opportunities for solid factoring and small financing companies. We have a link in our post to one of the top resources for small business owners.

If you need additional capital in your business – you can obtain a credit card for the short term, but you may need to look at a SBA loan to expand – banks are still willing to do these because of the structure and limited exposure to risk. Factoring can also help your business for cash-flow issues, but isn’t a traditional financing source to expand your operation.  Sometimes your factoring company may have connections where they can hook you up with a small business finance company.

We’ll keep you posted on news in the industry and how the credit crunch will affect the factoring business.

Anchor Funding Announces Loss

Anchor Funding Services reported a second quarter net loss of $284,372 on financing revenue of $273,516. That’s down from a net loss of $162,641 on finance revenue of $75,638 for the comparable prior-year period.

The Boca Raton, Florida invoice factoring company (OTCBB: AFNG) said the loss was due to investments in marketing, operations, and compliance costs.

Factoring and Invoice Financing is an excellent method to improve cash flow for your business. Companies like Anchor Funding allow businesses to operate without worrying about when the bill is going to be paid.  It allows you to bypass bill collections – in the event the invoice goes unpaid – the factoring company becomes the bill collector.

If you’d like more information on invoice factoring and how it may help your small business – visit bestinvoicefactoring.com. It’s a great resource with articles and companies by state.

Accounts Receivable Factoring News

Interesting news in the factoring world this week! GE Healthcare Financial Services Closes $75 Million Deal with The Schumacher Group!!!

GE Healthcare Financial Services is a source of capital, financial solutions, and other services for the global healthcare markets. GE Healthcare Financial has over $22 billion in capital that is just for the healthcare factoring industry.  They can do factoring and financing for medium to large sized businesses. If you need a factoring quote from a local provider please use the link to find a factoring broker.  

Bibby Financial Services announced on July 28th that they reached 30% growth year over year in their services. Bibby Financial does a range of factoring and related services with businesses in Atlanta, Georgia, Chicago, Illinois, Dallas, Texas, Houston, Los Angeles, Nashville, Phoenix, Toronto and West Palm Beach.  They specialize in factoring, purchase order financing, freight, and export.

In a time when people make everything sound like the sky is falling around all financial related businesses – it’s great to hear some good news out of these guys!

Also this month SBI Factors announce a merger with Global Trade Finance.  GTF is India’s largest factoring company.

Out recently was a great article if you are in the finance or factoring business. http://washington.bizjournals.com/washington/stories/2008/07/28/focus1.html?b=1217217600%5E1673187 - an article about asset based lending and what small businesses are doing with the credit crunch.  Sounds like there are a lot of options for businesses for financing.

As more factoring news is found – we’ll post it here!