Business Owners Turn To Invoice Discounting
15th September, 2008
More New Zealand Business Owners Turn To Invoice Discounting As The Credit Crunch Bites
Increasing numbers of business owners are turning to invoice discounting to help them cope with the negative impact the slowing economy is having on their cash flow management.
Chris Reid, NZ director of The Interface Financial Group, an international company that provides invoice financing (often called invoice discounting) to small companies, has experienced a substantial increase in enquiries over recent months.
Over the past 12 months, Interface’s turnover has increased by a massive 45%. Chris says that this figure is continuing to climb as more New Zealand businesses look for ways to maintain a healthy cash flow.
‘Business owners are really feeling the pressure,’ says Chris. ‘Banks are tightening their criteria and are much more reluctant to extend a helping hand to businesses experiencing money troubles. They just don’t want to take the additional risk in the current economic climate.’
‘Fortunately, the bank is not the only option for companies struggling with the economic downturn. These days a good bank manager will often refer their customer on to a reputable invoice discounting company and then take the lending over again once their finances have stabilised.’
Invoice financing can keep small businesses going by buying unpaid invoices from them. The business owner immediately receives up to 90% of the face value of the invoice, which enables them to maintain their cash flow while they wait for their clients to pay their bills.
About The Interface Financial Group:
The Interface financial group is New Zealand’s largest alternative funding source for small businesses. The company has been in existence for over 35 years, with offices throughout the United States, Canada, Australia and New Zealand.
Interface entered the New Zealand market four years ago and now has 11 offices across both the North and South Islands.
More information can be found at www.interfacefinancial.co.nz.