Something Good or Bad? An Alert!

People ask me all the time, perhaps because they know I have an opinion, “What are your thoughts on the economy?”

All I really know to say is this: I’ll take whatever comes my way in business as long as I can get good business opportunities. And that is exactly what we have been doing at The Interface Financial Group. Business is up just a tick under 100% year over year through April.

Will it stay that way? Nope! Simply because I feel like this is only a phenomenon known as the “velocity of money.” You see, inflation has already happened and now we are seeing the results. Gas prices are nearing an all time high, food, diapers, paper products, anything made with plastic and delivered by truck are all going up in price nominally. In reality, the value of the dollar is declining and countries are not wanting to own our bonds, hence the Federal Reserve is buying Treasury Bonds to the tune of over 70%.

Now to the “velocity of money.” It simply means that people do not want to hold onto anything that is losing value and that would be the US Dollar that they rely on to buy the necessities and the toys that the think they’d like to own. This could be (I’m not saying it is) the real beginning of the end for the Dollar. But velocity of money takes place prior to all huge or hyperinflation destruction of a currency. It will happen sometime if it is not happening now.

Hopefully, this is not the time and we’ll just go along growing the business of IFG where we purchase accounts receivable to advance our clients the cash they are waiting to get from their good paying customers. We do this so they can sleep better. This would be the “good'” thing.

If however, it is the velocity of money, then that really is “bad.”

Regardless of which it is, you need to be aware that there is a problem with the Dollar that we will ultimately have to face.

Inflation robs savers. Take that statement as an alert or warning to prepare yourself for everything you buy to cost more.

He Found a Winning Secret!

The following article was written by Dan Lacy and is reprinted/republished with permission from the author. You can learn more about Mr. Lacy and his consulting firm Dynasty Builder by visiting his Website: http://dynastybuilder.com or his Blog: http://danlacy.com.

March 9, 2011

I Found a Winning Secret that Works for Cash Starved Businesses

We all know that one of the greatest fears that business owners face is the sudden shortage of cash at a critical moment: payroll, a big vendor discount or bank payment.  It is a very frustrating, maddening, stressful time because you have the receivables; but you don't have the cash. 

Since this is an issue that many business owners face sooner or later, I thought it would be a good time to reveal a solution I found.   Last year while at lunch at Olive Garden in Greenwood, I met a person that solves "cash shortages problems," his name is Jim Hayes.  Jim's company is Interface Financial Group.  He is local, makes all of his own decisions and funds his own deals.  He is the real deal, genuine, honest, and connected.   

Here is some basic information:

• Transaction size $3k to $100k
• No Mickey Mouse up front fees
• Pay back is typically 30 - 45 days
• Advance rate is up to 90% of an invoice
• Balance sheet condition doesn't make any difference - much different than a bank
• Time in business - not important
• Collateral - accounts receivable
• Cost - is higher APR than traditional banks; but it is very short term funding
• Industry - just about any

Here are some specific examples of how Jim helps business owners make more money and keep in good standing by solving their short term "cash" needs:

Service Installation Contractor.  This company pulls wire for new construction or retrofit IT installations.  The owner is a hard worker, honest and very busy.  His business is 2 months old and he is doing work all across the United States. He has funded his business with his credit cards; but his credit cards are now maxed out and there is a large late fee penalty for not making the payment.  He has no money, but does have $500k in accounts receivable.  He has a backlog of work he can't finance because he has no additional availability on his personal credit cards.  Work is waiting.  He is non bankable because he has only has been in business 2 months.  Jim advanced the money that bridged the gap between when the credit card payments were due and when the contractor received the money - about 3 weeks.  He saved the customer and funded additional work.

Contract Manufacturing Company.  This company has been in business over 20 years, does business with publically recognized businesses in the Midwest, but had a large operating loss last year and was not in good shape with his bank.  The company had a $45,000 vendor payment to pay to get the supplier discount.  Jim supplied the money; the company took the discount and was in very good shape with his primary supplier.  This company uses Jim weekly to fund cash flow shortages until he can get profitable again and regain a good line of credit with a lender.

Transportation Company.  This company is a contract shipper that owns their own vehicles and does work for large customers.  The bank was covering overdrafts and raking in nice fees from NSF charges.  Jim came in and funded the cash flow short-fall. The benefit for the customer: 1) relationship with bank improved, 2) able to take discount on fuel costs, 3) able to fund more business, 4) no more NSF charges.    

Jim has been helping central Indiana business for year 5 years.  Jim Hayes, The Interface Financial Group, 1101 West Superior Street, Kokomo, Indiana 46901. Phone 765-868-7030. 

To Your Business Success,

Dan Lacy, Founder, Dynasty Builder

Mr. President, I Don’t Think I Want Your Help!

Yesterday, President Obama issued a statement which included a warning to those evil oil companies about price gouging the public (that would be you and me). It all sounds so nice, warm and fuzzy that government agents will look out for our interest in this matter but I recall the reactionary government response to something similar in the 1970s under wanna-be-dictator Richard Nixon.

Nixon showed similar concern for us then when prices were rising due to the inflation that was created by his Treasury Department with the help of the so-called Federal Reserve Bank. The central bank is neither federal, it has no reserves and is not a bank. It controls the “money” supply. Today since our “money” is backed by nothing it is considered a fiat currency. All such currency eventually reaches its real value. ZERO!

Inflation of the currency is a topic you should understand. If you don’t click the link for an easy to understand lesson on economics: http://mises.org/daily/908.

Nixon imposed un-Constitutional “wage and price controls” on nearly everything resulting in shortages of those things since no one was going to produce a product and offer it at a loss.

Should the current President do something similar to protect us will we see a similar result? Perhaps so! I don’t think I want to go through that (or worse) (rationing as a result of shortages?) again.

Governments need to leave the markets alone. Their meddling only causes other problems which they are either too stupid to foresee or wish to occur as a result (you decide) and we pay for all of those unintended consequences ultimately with a loss of more of our liberty.

I would rather have protection from government like our Founders intended when they drafted a Constitutional Republic and included a Bill of Rights.

No Mr. President, I don’t think I want your help!

S&P is Late to the Table

Yesterday April 18, 2011, the S&P downgraded its outlook on the US debt based economy to “negative.” That begs the question, “Gee, where have they been the past (at least) 2 years?” It would seem that the rating companies are either behind the times or somehow bought off so as not to tell the truth about the US debt. Either way, they have demonstrated that their ratings are not to be trusted.

Our central bank, The Federal Reserve, is monetizing at least 50% and perhaps at high as 70% of our debt. No one knows for sure but this signals bad things for the USD. If and when the US Dollar loses its status as the ‘world’s reserve currency.” What would this mean for people who think they can live off the dollars they saved for retirement? Our debt is unsustainable in my opinion and the day of reckoning will soon be upon us.

What will replace our system when it all comes crashing down? And it most certainly will since no debt based fiat currency has ever lasted forever!

It would be wise to consider this a warning about a pending storm and find the right kind of shelter for you and your family!

Busy, Lazy or Uninspired

I’ve not added to this blog site in some time and I don’t think it’s because I’m too busy or lazy. I think it’s because I’m not inspired enough and not sure of the benefits.

Does anyone really read what I have to say? Not much! My friends already know what I believe and if there is anyone out there with beliefs like mine, then why read me when they can read Lew Rockwell, or Judge Napolitano? They say it more convincing and with more logic than I ever could.

Frankly, I’m tired of the powers that be trying to convince me that the recession ended almost two years ago when they wouldn’t even admit in the beginning that we were in one. Next, I’m tired of the the way the unemployment figures are manipulated and I’m sick of being lied to about how much inflation there has been. I guess you could say that, “I’m no friend of the government’s line on the economy.”

Is that pessimistic? I don’t think so. Since facing the real truth is positive so that you can do something about the storm you are in or find shelter for the one that’s coming.

What Business Couldn't use a Little Funding?

There are many ways business could spend a little extra cash if they had access to it regularly. Companies could expand, take on more work and create new opportunities.

Many people associate the word funding with start-up companies and those who are in debt. While some of our clients do use our funding for those reasons, there are others who use it regularly in order to expand their business opportunities and lower stress levels. There are all sorts of ways our clients use extra funding to improve and grow their business after the start up phase.

One of our commercial cleaning clients uses factoring to cover payroll. In their field they are paid monthly, but pay their employees bi-weekly. They need something in the interim to make sure their 40+ employees are paid on time and still keep business on track.

Another client, who works in commercial landscaping, takes advantage of factoring in order to bid on larger jobs. These types of companies are usually paid as they go but still need to buy materials, pay workers, rent equipment, etc. Without capital they are missing out on the bigger opportunities and hindering their growth. The extra resources allow them to take on larger jobs, buy materials and continue to grow without relying on the money coming in.

Several of our clients have obtained cash discounts or quantity discounts from their suppliers as a result of funding. One particular client was thrilled that she not only had enough cash to qualify for a quantity discount for her supplies, but the amount of money that she saved with this discount was more than our fees! This is an example of how IFG really can help a small business grow.

Funding can help companies get ahead, beat out the competition or get back on their feet. If you or anyone you know could benefit from alternative funding please give us a call, we'd love to help in any way we can. If you're not convinced see what our satisfied clients have to say.

Many people may think funding is only for companies in debt or in the midst of an emergency, but some companies use our funding continually. If you are interested in exploring new business avenues please contact us.

Bootstrap Financing for Businesses

When companies are low on funds, whether in start-up mode or a few years in, they start searching for alternative ways to improve their cash-flow. One of the most common ways to gain a little extra moolah is through small business loans.

The drawbacks to these loans are interest and collateral. Many businesses don't realize there are alternative ways to fund their compaines, with less risk and potential debt.

The organic craze has everyone in a tizzy. People all over the world are incorporating the organic lifestyle into their everyday routine via food, household products, clothing and a number of other sources. Now there is even a way to extend it into business with a little process called Bootstrap Financing.

Bootstrap financing is defined as "the process of growing a business more or less organically, without using significant outside sources of capital," by Steve Martin author of Instant Profits: Making Your Business Pay. It's not only a great technique for start-up companies, but for small to medium sized businesses in need of financial aid as well.

Under the term Bootstrap Financing there are five main types: Trade Credit, Leasing, Real Estate, Customers and Factoring.

• Trade Credit focuses on a vendor agreement allowing your company to receive goods and generate cash before your payment is due.
  
• If the funds to make a large payment on space or equipment are not available, leasing is a great solution in lieu of making large purchases.
  
• Companies that hold real estate may be able to borrow against, rent or refinance to make the most of existing assets.
  
• A customer is permitted to write a letter of credit, stating they will buy X amount of products from you, and in turn suppliers will allow you to purchase materials to manufacture the products using the letter of credit as collateral.
  
• Companies in need of immediate cash can take part in factoring, the process of selling accounts receivables for a percentage of the actual cost.

These procedures allow businesses to use what they've got to get ahead and leave loans as a plan "B". While there is nothing wrong with borrowing money, we have all done it once or twice before, there is a great satisfaction that comes with being debt free and doing it yourself.

To explore your financial and factoring options please contact us or visit our web site. We would love to help you explore alternative options for funding your company.

Contact us to open a dialog about your company's needs.

So what? Wells Fargo & Other Thoughts

We heard this week that bailed out mega-bank Wells Fargo made a profit in the first quarter of this year. Big whoop! Let's see, they borrow money at 0% and loan it out to people using their credit cards at 15 to 21% or more. How could you not make money? Any kid running a lemonade stand knows that you can make money with that deal.

The questions remain, "what is on their balance sheet?'' Hmmm, credit card accounts that will default soon perhaps? More bad mortgages? All kinds of credit derivatives?

So what happens when any of these items begin to go "belly up"? What happens if they lose big amounts of money in 2009 (in the billions)? Well we all know that they are "too big to fail" and our benevolent federal government will continue to prop up any zombie company (with our money) they believe falls into that category.

Enough is enough! Let the Tea Parties begin. You cannot solve a debt crisis with more debt! Let your representatives in Washington know that you have had enough of the spending that can never be paid off in our lifetime or that of our children and perhaps that of our grandchildren These policies are immoral and will only lead to more economic troubles ahead. And it is time to abolish the Federal Reserve!

The market must correct itself no matter what the duo of Tim & Ben think. They cannot throw more of our money at the problem and make it go away. They can only kick the can down the road which will make coming out of this economic downturn that more painful by prolonging the problem and even making it worse like Hoover and Roosevelt did during the Great Depression.

Success Stories

As we start our 4th year in business as an Interface Financial Group office we find ourselves thinking about the clients that we have worked with to this point. We'd like to take this opportunity to share some of our experiences. First, our clients come to us through referrals. We could not have grown our business and helped our clients grow their businesses without good referral partners. If you are one of those referral partners who trust us enough to make a referral to us, we THANK YOU.


Our clients say it best.

"Thank you for your service, we are able to keep moving and my stress level has dropped big time."

*****

"Jim, I wanted to take the time to say I appreciate you and the assistance from Interface Financial. Working with you and Connie has been a true pleasure and an absolute blessing for our growing business. I will pass your name on to colleagues, but I just wanted to say thanks for all of the hard work and effort you put toward helping us get to the next level."

*****

"Thanks again for what you allow our company to do - continue when times get tough and we are continuing to grow. You and Jim are awesome!"

*****

Our clients have a wide variety of businesses and their funding needs are just as varied. Here's just a partial list of the types of businesses that our clients operate:

Heating & Cooling Subcontracting
Freight Expediting
Contract Electronics Manufacturing
Metal Fabrication
Plumbing Supply House
Commercial Cleaning
Snow Plowing

Our smaller clients' funding needs may be less than $10,000 a month, while a large client may need more than $100,000 in one transaction. Some clients have used us weekly while others have used us just a handful of times. They all appreciate the fact that IFG's Invoice Discounting service is truly "use it as needed." While our clients have all needed the same thing, CASH, the reasons that they needed it is varied. The most common reason that they sell invoices to IFG is to obtain the cash that they need to make payroll. We have one client that sells invoices to us when he needs cash to buy equipment at auctions. Several clients have been able to obtain cash discounts or quantity discounts from their suppliers. After her first funding transaction with IFG, a client was thrilled that she not only had enough cash to qualify for a quantity discount on her supplies but the amount of money that she saved with this discount was more than IFG's fees! This is an example of how IFG really can help a small business grow. When we're asked, "What do you do at The Interface Financial Group?", our response is, "We provide working capital for small businesses." But we could say, "We provide stress relief." Our clients tell us repeatedly that it is such a relief to know that they can get the cash that they need to run their business. One client even went so far as to say that we saved his marriage. IFG has eliminated the fights that he and his wife would have regarding how they were going to make payroll. We hope that this has given you some insight into what IFG's Invoice Discounting service has meant to the clients that we serve. And since our business comes from referrals from you, you too have been a part of the success or our clients. Again, thank you for those referrals. Please continue to refer to us those businesses that you find that are experiencing cash flow problems.

Let us help the people you know find success. If you know anyone who could use advice or help financing their business please pass our information along.

hayes@interfacefinancial.com / Office Phone: 765-868-7030

You Are Not In Business Alone

Education should be a lifelong process, especially when it comes to your livelihood. The status quo is constantly changing in every industry and these days you cannot afford to be left in the dust.

I want you to look into some tools and resources to help your business. Take charge of your education and see what you can do.

Running a small business takes time, planning, implementation, experimentation and commitment. And once you get an idea off the ground and running, only 44% of small businesses make it past four years. Initial expenses are also extreme and sometimes unexpected; small firms typically spend four and a half times as much per employee to comply with environmental regulations and 67% more per employee on tax compliance than larger companies. The amount of stress surrounding a business owner is incredible and many feel it is soley their burden to bear.

Entrepreneurs are only as strong as the knowledge and support they have behind them. No one gets to the top all alone and one of the greatest resources in the business world are peers. Reading books, articles, blogs or any other public output of information from experts or thought leaders in the field will bring immense benefits. One very helpful resource we used starting out and still read today is www.entrepreneur.com (we recommend "Use Stories to Add Oomph to Your Brand"). The knowledge, insight and motivation gained from reading the work of your peers can push you in the right direction and offer you choices and ideas you didn't know were available.
There are too many uncontrollable aspects of life, but the fate of your business should not be one of them. There are a plethora of options and avenues that can and will help your business become one of a kind and successful; you just need to arm yourself with the right tools.

Let me know if any of these resources have been helpful to you.

Time to Get in the Trenches!

This is sort of a rehash of a previous post but I feel the message is so important that I'm including it again.

With the economic downturn at the front of everyone's mind, it is easy to play it safe in business. We forget that opportunities are constantly arising, no matter where the economy goes. Now is the time to outline some goals and strive to achieve them. Get in the trenches so to speak.

The Great Depression was a time when many fortunes and millionaires were made, despite the state of the economy. Those who prospered took into consideration the challenges of the shifting economy, modifying their products, services and business model. It was a time for serious reflection, and significant innovation.

Some of the ideas and products which came out of the Depression were the electric razor, supermarkets, the chocolate chip cookie, Monopoly and Laundromats. The same was true just a few years ago during the "dot.bomb in 2000. Google began in the mid-nineties and flourished through the dot.bomb as did Amazon. While many companies around them were failing, they found their niche in the market and are two of the most successful internet companies today.

The lesson: During this recession we too need to ask ourselves, "How can I do something better?" and "What do other people need?" in order to emerge successful. Your goal must be to determine: What do you need to achieve in order to really make a difference in your life and the lives of others? By researching and deliberating these simple thoughts you may become the creator of the next big thing.

When times get tough it brings out the best in the best people, i.e. Ruth Wakefield the mastermind behind Toll House Cookies.

We'll get through this economic storm unscathed if we choose to embrace, instead of ignore, the opportunities. Sometimes taking advantage of the opportunities requires cash flow, if you or your clients are sitting on receivables call IFG to help get the cash flowing.

Read more tips for surviving the recession.

Gold Nearing an All Time High

As one who has a more than passing interest in the economy and how the current economic storm affects all of us, I've been watching the precious metals market. Gold has now closed above $990 and some gold bugs along with market experts are expecting gold to go even higher than its all time high of over $1030 an ounce. When will that be? Some say soon others say after the price retreats again. If it does indeed retreat, then it will be a good time to buy gold and if you already own some, buy some more!

Silver is still lagging behind the historic price vs. gold and may be even a better investment since it too will go above its high set last year.

So what is the price of precious metals telling us? In my opinion it means that people are now losing faith in the dollar as well as looking to invest in something that has gone up in value for the past 8 years and if the affects of this massive new currency creation (inflation) by the Fed becomes a reality as it has throughout history when the currency is inflated, then those investors will have made some very wise choice indeed. Gold and silver would soar much higher and protect the wealth of those wise investors. I would encourage anyone to take a serious look at owning physical gold and silver as a store of wealth. If you need more information check out these Websites: GoldSilver.com and Silver-Investor.com. Are you prepared to survive the (still) coming economic storm? I hope so!

Dr. Chris Martenson's Crash Course

It would appear that more investors are looking to gold and even silver as a store of wealth. History is quite clear that this always happens during times of financial crisis.

Whenever the currency is debased and inflation occurs then precious metals become a safe haven. Some so called experts say that there is not inflation, I disagree! The supply of currency has increased! Now currently it is not being circulated very rapidly so what we are witnessing is a contraction of credit and an increase in the savings rate or hoarding of cash.

With government spending at an all time record high along with the Federal Reserve Bank's monetizing of debt the currency is indeed being devalued. Once the confidence in the dollar tanks, look out. You had better be prepared to witness the results of inflating our way out of this financial mess.

If you doubt anything I have presented here, then I suggest you "learn everything about the economy in the shortest amount of time." Visit the Crash Course prepared by Chris Martenson, PhD. Dr. Martenson is a scientist who understands the risks that we face today and has condensed his "End of Money" seminar to an online presentation. Watch it here and give me your comments. The URL is: http://www.chrismartenson.com/crashcourse.

Grateful to be so Busy

The past week and a half have been very busy for us and we are indeed grateful for all of the prospects we have. These have come to us through our networking efforts with a whole new group of contacts. Normally our referrals came mostly from bankers who currently cannot help a banking customer and those still do come our way. But we saw a downturn in those referrals during the last several months and quite possibly because the commercial lending pipeline is nothing but a drip for most commercial bankers.

We saw this coming and shifted our networking focus to include more business and cash flow brokers. In times like these we concluded that in order to grow our business and find new clients we needed to make some changes in our network marketing. We are delighted to learn that by doing so it has paid off.

If you are not getting all the new business you would like to have why not consider some new methods to reach those people you would consider your potential customers. It is important to recognize that things are changing in the market place and you need to embrace those changes in order to thrive.

Leave your comments about the success you've had by changing your strategies to grow and grab market share which you think would be beneficial to other business owners. By helping others you will increase your success!

I Need To Do More!

When it comes to blogging, I need to keep my promise to blog more. No real reason for not doing so but I have plenty of excuses! That's going to end as of today!

With businesses experiencing some tough times because of the economy we in business need to do more. More of the things that got us where we are in our business but also more in finding new streams of income, more marketing to grab market share and more networking in order to help others in business we trust.

If you want more business in this economy you need to do more. Look for ways to beat out your competitor. Look for more services you can provide your customers and learn how to be an effective networker. Check out Business Network International (BNI) for a chapter near you. And if you live in Indiana be sure to learn more about Rainmakers! I recommend these groups to help you help others grow their businesses. By doing so you will grow yours. Givers Gain!

Tough Times Bring Out The Best in the Best People

I read a great message last week which sums up how I feel about the (still) coming economic storm. I don't present my message as some prophet of doom but rather like the weather forecaster who is sounding a warning for you to make preparations for the storm. By knowing the forecast you can turn this negative event into opportunities to prosper for you in your personal and business life.

The message is this: Many fortunes and millionaires were made in the Great Depression. Those who prospered were taking a good hard look around and were asking the right questions. Today we need to be asking, “how can I do something better and what is it that other people need?” You also need to determine what goals you want and need to achieve what will really make a difference in your life and therefore the lives of others.

When times get tough it brings out the best in the best people and we’ll get through this storm unscathed if we don’t ignore it but embrace the opportunities.

What lies ahead? That's for you to decide. You can ignore the signs and get swept away by the storm or you can heed the warnings and make positive decisions on how to proceed in order to simply survive and/or prosper.

With that being said, one might ask, "Where do I begin?" You can begin by getting informed. Connie Hayes, my wife and business partner has made some good suggestions on just that subject. Visit her blog and view her latest posting.

May God bless you with great happiness during this holiday season!

Turning Invoices into Cash

The Interface Financial Group’s Invoice Discounting service turns invoices into cash. IFG’s Client is a business that provides their goods and/or services to another business, the Customer, on standard credit terms. In other words, the Client provides the goods or services upfront and then sends the Customer an invoice for payment. This invoice is due for payment in some number of days, usually 30 – 45 days.

Often times, before this invoice is paid, our Client needs the cash that this invoice represents. He may need it to pay his suppliers for the products he used for the order or to purchase supplies for new orders. Perhaps he needs to pay his employees, taxes, rent or any other normal business expense. He certainly can’t pay these bills with the invoice. But, what if he could turn the invoice into cash? That’s what IFG’s Invoice Discounting service does. He can sell that invoice to IFG. IFG turns that invoice into cash by purchasing it from the Client at a discount. The purchase price, or advance as it’s often referred to, will be up to 90% of the invoice’s face value. Poof! Just like that the invoice has been turned into cash.

Of course it really isn’t magic and there are details about the process that weren’t discussed in this brief example. We’ll go into those in the days ahead. But the fact is that Invoice Discounting is a way to turn your businesses invoices into immediate cash.

If you’d like more information call our office at (765) 868-7030 or email us at hayes@interfacefinancial.com.

Posted by Connie Hayes, Principal - THE INTERFACE FINANCIAL GROUP

Networking Dos & Don'ts

Have you ever had this happen to you?

You are at a networking event and you introduce yourself to someone you’ve never met (after all, you attend networking events to meet new people) and after the pleasantries of introduction have concluded you ask Joe what he does? He says he sells furniture and then goes on to tell you why his mattresses are the same ones the big stores sell but his cost only a fraction of what they charge. You cringe but not wanting to appear rude, you politely ask him another question about his business and you’re hit with another barrage of why YOU should buy from him.

Are you likely to buy anything from him? Would you be willing to refer him to your closest family members or friends?

Ask yourself, "Why not?"

Joe, in the example above has confused networking with direct selling.

Don’t make that same mistake. Your networking efforts should be directed to developing relationships built on trust. Your referral partners could be your customers but really your focus should be to teach your referral sources how to refer you to their friends and business contacts. You'll achieve greater success, I promise.

Happy networking!

We're So Lucky!

It's that time of year. Time for a vacation. Time to clear the mind and revitalize the spirit with a trip to the mountains of Colorado. The recreation opportunities are endless. Miles and miles of trails for hiking, backpacking and mountain biking await those who look for some solitude. And let's not forget the kayaking and rafting opportunities as well. Then throw in more miles and miles of trails for off-road 4x4 adventures and you've got the perfect place for a summer vacation and in the winter the snowbugs take to the slopes for some of the best skiing anywhere in the US, so they tell me. I don't ski.

We plan to take advantage of some of those trails even though there is nothing you can do here in Indiana to prepare for the altitude and steepness of the terrain.

Now some people will ask, "Since you own your own business, how can you go on vacation and service your clients when they need funding?" The answer is simple, our business is portable. We forward our faxes to an email fax service, our office phone is forwarded to a cell phone and with a laptop you can ACH or wire funds to a client's account even from a campground. Since we feel it is important for our small business clients to get the funds they need in order to move forward in business, we feel it is our duty to stay connected when those requests for funding come in to us.

That explains why we are so lucky. We have a love for small business and what we do. Our clients look to us as their partners in business and we do not intend to let them down. That is quite satisfying to us. And we can help them even while we recharge our own batteries, we're proud of that fact.

If you're looking for a business that will provide you with that kind of satisfaction, why not look into the franchise opportunity that THE INTERFACE FINANCIAL GROUP has to offer. You might just find it as rewarding as we do.

Happy vacations everyone!

Blame Big Government

It’s July 21st and it has been too long since I posted new information here. But where does the time go?

Business is good for us but we'd like it to be better. We're getting more referrals and leads come in but the prospective clients are slow to move in the direction of invoice funding. These things require time and then there is the attempt to keep up with the financial news - the markets, oil and gas, gold, failing banks, the Fed and FDIC. This takes up even more time but I believe in order to protect yourself and educate others, you must be informed.

I’m an optimist at heart and look for the good in people and events. However I’m not a Pollyanna and when you look at the fundamentals driving the economy, one wonders when the next shoe will drop in what has been referred to as “the perfect storm.” So I’m certain that things will get a lot worse for the US economy before they get better. How’s that for PMA? Yes, there is light at the end of the tunnel but just how long is this tunnel anyway?

If the market manipulators have their way, the tunnel will be a lot longer but if the free market is allowed to correct itself, we’ll get over this illness sooner than later. When I refer to market manipulators I’m not referring to those people who speculate in the stock market. I’m talking about the Federal Reserve Bank and government regulators. Many free market economists point out that the problems we now face would not exist if the markets were left alone and not managed by the powers mentioned above. I certainly agree with that assessment. This is not a problem of free market capitalism but a perversion of the system overseen by our own government.

I suggest you inform yourself. Start by reading the booklet, THE LAW by Fredrick Bastiat, the great 19th Century economist. For a pdf version of this great little book click here: http://www.fee.org/pdf/books/The_Law.pdf.

In closing, I'll attempt to be better about keeping this blog updated with new information and if you would like to share your comments about the economy or Bastiat's little book, I would love to hear from you.

Credit Crunch Hits Small Businesses

We see the headlines over and over again. Small businesses are finding it harder than ever to get bank loans. In a Federal Reserve survey released earlier this month, more than half of the banks polled in April said they tightened their lending criteria for small firms in the last three months. That's up from January, when 30 percent of those same bankers reported stricter standards than the previous three months. The Small Business Administration's most popular small-business loan is down 19 percent nationally in volume from the same time a year ago, according to agency data. A company looking for money to facilitate their growth will naturally turn to their bankers for a loan and bankers are our number one source of referrals. But, what business person do you know that sells their goods and services on credit to other businesses and has been denied funds by their bank? If you are a banker or broker and you know someone who has a need to turn their receivables into cash, contact us today.

Factoring & Invoice Discounting - a definition

Question: Is there a difference between Factoring and Invoice Discounting?

Answer: Yes and No. Both terms have the same root definition. In these modern times, the following are more accurate definitions of factoring and invoice discounting:

Factoring - The selling of a company's accounts receivable to a third party, in order to obtain funding.
Over time it has come to mean that factors provide the following:
· Long term agreements
· Large minimum amounts
· Maintain the sales ledger and perform other administrative tasks relating to accounts receivable functions;
· Collect the accounts receivable;
· Provide bad debt protection by absorbing losses, which may arise as a result of the customer’s inability to pay.

Invoice Discounting - The selling of invoices to a third party at a percentage of their face value to obtain immediate funds. Period!

As you can see, both factors and invoice discounters offer the same basic service by providing funds to business through the purchase of A/R but today factors offer more services which may or may not be desired by clients needing funding.

At IFG, we are Invoice Discounters and require no large minimums or long term agreements. Our clients use our funding as needed. Some use us every week or month and some will only use us 5 or 6 times a year. We will even fund a qualified client once if needed. Our initial funding amounts range from about $2000 to nearly $200,000. Our discount rate is determined by how many days before we get paid by our client’s customers. There are no other fees!

As you can see, IFG offers a unique funding option which is designed to help growing, profitable businesses improve their cash flow through the Invoice Discounting service.

Interest Rates & Our Clients

The new year has begun and by reading the financial press one could speculate that interest rates will continue to fluctuate and few small businesses will welcome this news.

Recently an IFG client asked how changes in these rates would affect him. The answer is the same as it has always been -- there is no change! Since we are not lenders, fluctuating interest rates have no bearing on what we do - nor on what his costs for our service are.

We charge a discount fee, being the difference between the value of an invoice and the amount we purchase it for. There is no loan, thus no principle with interest to repay.

IFG's invoice discounting service is user friendly and offered to our clients on a "use it at needed" basis. We do not require long term commitments or minimum amounts and our clients are in control of their cost by selling good invoices that will pay sooner rather than later.

This is truly a unique way to conduct business with our clients. They appreciate the fact that we are indeed a valuable business partner by helping them grow their businesses and add to their bottom line.

Funding for Construction Progress Billing

The Interface Financial Group provides short-term cash flow to the construction industry by purchasing selected invoices for work completed and/or progress payments at a discount. Our service allows them to convert an invoice due in 30 to 45 days into immediate cash.

Would you like to turn your AIA requests for progress payments into instant cash?
Would you like to bid on more contracts but don’t have the cash flow to support the bid?
Could your business grow if your business was “cash on delivery?”

Our quick and cost-effective system can help you achieve your expansion goals today. We free up working capital so you can pay suppliers and employees and take on more jobs. We understand your business and can help you.

What is Invoice Discounting

The Interface Financial Group® Invoice Discounting process is very simple — IFG purchases the invoices of a small business doing business with another business (B2B) at a discount. Put another way, the invoices IFG purchases become “cash-on-delivery” sales for our clients. (This is not factoring in the 21st Century meaning of the term. By definition, yes, we factor receivables).

The client's customer agrees to pay IFG based on the terms of the invoice. With a new client, there is a due diligence period of approximately five business days to collect information and to check the credit of their customer.

What does our client get? Increased cash flow to support and grow their business operations. Many times a client can offset the services fees of invoice discounting by placing larger orders with suppliers, paying suppliers to avoid late charges, meet payroll or even pay taxes.