11. November 2009 by admin.

We often are asked about the types of transactions we are funding.  Here is some examples of deals that IFG has funded, both locally and nationally. 

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10. November 2009 by admin.

Why do people blog?  A quick internet search finds the following reasons:

• To have a voice
• It makes them happy
• To share your passion
• To pass the time
• To connect with others
• To make money

We could probably go on and on, listing 1000s of reasons why people blog.  I have never considered myself good at writing.  In school, my grades were always significantly lower in the “soft” subjects versus the sciences.  So why do I blog?  Personally, I keep three blogs, and I have a different reason for keeping each of them.

1. www.middleagedathlete.com - I initially started this blog as a way for me to keep my mother, who lives in Arizona, updated on my running.  You see, I was trying to find a way to motivate her to stay active without badgering her over the phone every few days.  I thought if I could share pictures, written stories, and in one case a podcast about my running experiences, she would want to exercise.  I’m happy to say it worked!  She has recently completed three different 5k races, and continues to improve.
2. fedupwiththefed.blogspot.com - I make it a point not to mix politics with my business relationships.  So what do I do when I read about something that upsets the way this country is being run?  I vent in my little personal blog.  I don’t think anyone ever reads it, and if they do, they don’t comment on anything I write in there.  But writing helps me think through the issues involved, and allows me to express myself without directly offending anyone.
3. blog.ifgtx.com - This blog is my one business blog.  I keep it for two reasons.  First, every once in a while I find an article or video that I think my contacts in the community would appreciate.  My blog allows me to “bookmark” and share the story with my business contacts.  Most of the time, the topic will be related specifically to factoring or small business, but not always.  The second reason I blog is for…publicity (shocking!).  Blogging is an excellent way to share information about my business without being too intrusive.  It is inexpensive, and every few posts, an automated program sends new posts to my contact list.

So, why do you blog?  Or why don’t you?   Leave some comments below or email me directly.  I’d be curious to know.

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27. October 2009 by admin.

As the economy continues to struggle, companies of all sizes are looking for ways to assist their cash flow requirements.  Larger companies that have the power are unilaterally deciding to slow their payments to their vendors.

A recent article in the Wall Street Journal states, “In an example of corporate Darwinism at work, the recent round of quarterly earnings results showed companies with annual revenue of more than $5 billion sped up their collection of cash from customers while slowing their own payments to suppliers.”

The trickle down effect of this is tremendous, as the suppliers, typically small or medium sized businesses, are realizing a cash flow crisis.  Typically, established businesses would have no problems turning to their banks for a credit line to help finance this cash flow gap.  But many companies have discovered that that type of financing has dried up, which leaves the suppliers in a bind.  Do they give up on the slower paying (but large) customers?

A flexible factoring product, like the spot factoring option Interface Financial Group offers, can help a company get through these tough times by advancing funds on accounts receivables weeks or even months before the company expects to get paid.  This influx of cash can allow small and medium sized businesses to continue to function until the availability of more traditional bank funding returns.

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20. October 2009 by admin.

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20. October 2009 by admin.

Factoring is a unique type of financing.  “Niche” or “specialty” financing are terms that come to mind.  What it IS NOT, however, is well understood.  Many times I will have a conversation with someone who compares it to a bank loan.  “You loan money on receivables, right?”  “What is your interest rate?” ”Factors are lenders of last resort.”  Unfortunately for the factoring industry, these questions and statements display the misunderstandings people have about factoring.  This post is an attempt to clear up those misunderstandings.

So, how does IFG’s factoring differ from a bank loan?  Let’s start from the top.

1.  Submitting an Application

Most banks require that a company have at least 2 or 3 years of business financials and tax returns before considering them for a conventional loan.  If a company doesn’t have this kind of history, the application process may be cut short right here.  Factoring companies, on the other hand, are looking for accounts receivable, and are not overly concerned with the length of time a company has been in business, just the quantity and quality of the companies invoices.

2.  Increasing the Funding Amount

When a company is growing and is looking to increase its bank line of credit, it will often times have to reapply to the bank for additional approvals.  This process can take weeks (or months!) to complete.  However, once a company has established an IFG factoring relationship, additional funds are easy to come by.  In fact, because receivables typically increase as a company grows, and IFG funds a percentage of those receivables, a company’s “credit limit” automatically increases as well.

3.  Repayment

Loans are typically paid back on a set schedule, usually monthly or quarterly.  This schedule may or may not correspond to the exact times cash is received in a business.  For example, if a client borrows $100,000 for 30 days, and the client’s customers pay on 45 day terms, there is a good chance the client will not be able to pay back the loan.  On the other hand, a client’s customers are actually paying IFG, and thus there is no hard and fast due date that might cause a client to default on the financing.  IFG is paid when the customer makes payment, not on an arbitrary date.

 Hopefully this post highlighted a few of the major differences between Factoring and Bank Loans. 

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13. October 2009 by admin.

I received this video via email.  The email stated that this video was played at its annual shareholders meeting this year.  Whether or not that is true, the video points out some pretty amazing things about the evolution of our world.  I hope you enjoy it.

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7. October 2009 by admin.

Recently, I have noticed a larger amount of calls coming in from companies asking if we will factor a single invoice from a single client.  Of course I respond in the affirmative, but many times when I hear that question, I know what is coming next.  As part of our pre-qualification questionnaire, we inquire about the total amount of accounts receivable the company has.  The client normally responds with, “I thought you said you can factor a single invoice, why do you want to know about all receivables?”  I explain that an IFG spot factoring is a full recourse transaction, and is not intended to be used as the client’s dumping ground for delinquent accounts.  If an invoice becomes deliquent, IFG looks to exchange that invoice for another that the client has in their receivables portfolio.  IFGs Terms and Conditions document is quite clear about payment default and how it is resolved. 

I have found when a client begins the conversation with the single invoice question, they are often times looking to collect from a delinquent or deadbeat customer.  They have given up hope or don’t want to spend the time chasing the debtor, so they are trying to offload the bad invoice to us.  Many people do not understand the difference between spot factoring and collection activities.  Many feel that IFG should take over the collection activities for them.  While this may be more common among traditional factors, most factors operate on a full recourse basis. A little education about what spot factoring is usually clears this up quickly.

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23. September 2009 by admin.

Anybody who knows me knows I love quotes.  I’m not sure why?  I guess it is because they motivate me when I read them, or make me think about something I would not normally have thought about.  Whatever the reason, I am a huge fan!

“The chief danger in life is that you take too many precautions.” - Alfred Adler

“If you don’t know where you are going, you might end up someplace else.” - Yogi Berra

“When wealth is lost, nothing is lost; when health is lost, something is lost; when character is lost, all is lost.” - Billy Graham

“If you do what you’ve always done, you’ll get what you’ve always gotten.” - Tony Robbins

“One important key to success is self-confidence.  An important key to self-confidence is preparation.” - Arthur Ashe

“Nearly all men can stand adversity, but if you want to test a man’s character, give him power.” - Abraham Lincoln

“One of the nice things about problems is that a good many of them do not exist.” - Steve Allen

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23. September 2009 by admin.

My brother and I always joke that the Italians created everything.  Well, here is just one more thing to add to our arsenal!

 Actually, this documentary is extremely interesting, and shows how financial businesses and markets were formed.  When you get some time, I would highly recommend watching “The Ascent of Money” on the PBS website.

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31. August 2009 by admin.

Have you ever had one of those days, weeks or months when it was just hard to stay motivated.  Everybody does.  Now you can get a weekly kick in the #%* from a gentleman named Dave Navarro (no, not the Jane’s Addiction guitarist).  I’m not sure how I stumbled upon his website, but I liked it and was intrigued.  So I signed up for his “Weekly Kick in the #%*” newsletter, and now, without fail, an email awaits me every Monday morning to get my week moving in the right direction.

Now Dave doesn’t make any money directly from the weekly newsletter, but he does sell books and services from his website.  I haven’t ventured there yet, but I have been impressed with what I have seen so far.  If you need a little boost, give it a try.  You can find it here.

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