Canada : The Interface Financial Group Offers Aid to Small Businesses Losing Funding Due to CIT Group Bankruptcy.

Byline: pinto03

The Interface Financial Group (IFG), North America's largest alternative funding source for small businesses, announced that the company stands ready to aid businesses who experience loss of funding due to the CIT Group, Inc. (CIT) reorganization. CIT provides business loans, financial services and financing solutions worldwide and is one of the largest sources for providing working capital to small business and medium-sized businesses in the United States. The company announced a prepackaged plan of reorganization on November 1, 2009 to restructure the Company's debt and streamline its capital structure. IFG provides short-term financial resources including single invoice factoring to companies in the United States, Canada, Australia, New Zealand, and Singapore.

Retail analysts are predicting that customers of CIT, small retailers and suppliers, could have a difficult time obtaining financing after the holidays. According to the SCORE association (www.score.org) there are an estimated 29.6 million small businesses in the United States that employ more than half of the country's private sector workforce.

"It is small and medium-sized companies that rely on CIT for short-term financing. We hope that filing for Chapter 11 will help CIT to go through reorganization quickly so that the company can continue fueling small businesses with necessary cash flow," said George Shapiro, chief executive officer, The Interface Financial Group, Inc. "In the mean time, IFG is here to provide short-term solutions to assist those in need of funding."

CIT disclosed that it expects the in-court process to be completed by the end of the year and none of its operating subsidiaries, including CIT Bank, its business segments or international business operations, are part of the filing.

Invoice factoring is not a loan, rather it is the purchase of financial assets, or receivables, from a factoring company. Factoring differs from traditional bank loans in that bank loans involve two parties, while factoring involves three parties. Banks base their decisions on a company's credit worthiness, whereas factoring is based on the value of the receivables. With invoice factoring, there are no minimums, no maximums, no long-term commitments and no lengthy application process.

Factoring has been around for more than 4,000 years, and today IFG is finding that single invoice factoring is a popular new tactic allowing companies to factor one invoice at a time. Invoice factoring benefits businesses that do not get paid for 30 to 60 or 90 days by advancing up to 90 percent against invoices. IFG looks at the creditworthiness of the client's customers and can fund within as little as 24 hours. The company does not expect to buy 100 percent of a company's receivables, and there are no minimum or maximum sales volume requirements.

Bank loans involve two parties, while invoice factoring involves three parties, and while banks base their decisions on a company's credit worth

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