Contractors Selling Receivables at Discount

Bethesda, MD, Jan. 15, 2009--The Interface Financial Group, North America's largest alternative funding source for small business, says that its factoring business in the construction sector was up by 40 percent in the fourth quarter of 2008.

The recent tightening of credit markets has been especially hard on the construction industry. Along with industry trends such as sustainable building, there are changes in building code standards that are affecting the industry. The economy and the lack of consumer confidence promise to make 2009 a challenging year for contractors.

Single invoice factoring has become a highly effective cash management strategy, particularly in the construction industry and for sub-contractors who often experience cash flow problems: meeting payroll, buying supplies, paying benefits and Workers Comp. and more.

Factoring allows businesses to obtain funds based on their current accounts receivable -- the money they expect to have coming in--by selling their receivables at a discount.