Factoring Companies Supplying Small Business Financing Despite Harsh Credit Environment
Factoring companies are quite busy these days filling a huge void in small business financing. Thanks in large part to a deep and persistent credit contraction, many business owners are turning to business factoring to stabilize cash flow and finance growth.

FREDERICKSBURG, VA, April 15, 2011 /24-7PressRelease/ -- With the willing support of the mainstream media, Wall Street analysts, macro economists and government statisticians continue to paint a picture of a rebounding U.S. economy, insisting that the alphabet soup of government bailouts and programs have worked and recovery is well under way.

Yet, in a March 28 article "Small-Firm Owners Still Waiting For Recovery (http://tinyurl.com/3nmmpw3)," The Street reports on the latest survey results of Discover Financial's Small Business Watch. Only 1% of the small businesses surveyed said they were experiencing a recovery, while nearly a third claimed that they have contemplated going out of business sometime during the past two months.

Evidently, for most of the nation's small firms, the supposed recovery is just wishful thinking in a mirage fabricated by the media and fueled by lavish government spending. The reality, particularly for small businesses and the consumers that patronize them, is economic uncertainty and diminished credit availability remain widespread. Government stimulus programs and bailouts have certainly helped big business weather the long economic storm, but the initiatives aimed at small business financing have been slow - very slow - to take hold.

Take for example the $30 billion Small Business Lending Fund created by Congress in September 2010 and targeted to smaller community banks more likely to work with small businesses. The original deadline for the banks to apply, March 31, came and went, and according to the Treasury Department, as of April 6, just 600 banks had applied for about $8.7 billion of the $30 billion in available funding. That deadline now has been extended to May 16 in the hope that more community banks will apply.

In the end, the small businesses can't wait for the banks. For those business owners who have been relying on their credit cards, time is fast running out and the bills are coming due, so they have been seeking other means of funding. One such strategy is accounts receivable factoring -- factoring invoices.

"Factoring companies have been around for a long time," says 13-year commercial finance veteran and Smart-Business-Financing.Com creator, Mike Lieber. "But factoring financing is a strategy that small businesses are now only beginning to hear more about."

Easy to set up and use, business factoring provides stable, predictable cash for working capital without loans or debt. How? Factoring companies purchase invoices from their client companies at the time they are created at a small discount. This eliminates the 30, 60, or 90-day wait that business owners normally have to endure and gives the firm's owner instant access to business capital. A similar technique is available to retail companies who accept credit cards and installment sales contracts.

"Many business owners who have never used receivables factoring have been calling us up for help in the last six months or so," says Lieber. "When they learn about all the benefits factoring offers, any natural skepticism or hesitation usually vanishes pretty quickly."

About AEGIS Financial Solutions, Inc.: Founded in 1998, Mike Lieber's company has been on a mission to help people solve financial problems and get money when they need it most, using the fast and flexible resources of the cash flow industry.

Press Contact:
Mike Lieber, President
AEGIS Financial Solutions, Inc.
88 E. River Bend Road
Fredericksburg, VA 22407
mjl@aegisone.com
PH: (540) 548-2270

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