As the United States climbs out of the Great Recession, countries around the world are doing the same, each in their own ways, and each with varying successes and struggles. Taking the lead at the moment: France.
Bloomberg.com reports this week that, “French lending to small and medium-sized companies -- with fewer than 250 employees -- never turned negative and is growing at an annual rate of about 4 percent, data compiled by the Bank of France show.” Beyond that, Bloomberg reports, “France outstripped every major economy in Europe in terms of full loan approval rates for small businesses for the January 2009 to June 2010 period, according to European Central Bank data.”
By contrast, the U.S. continues to struggle with small business lending and bank closures, among other major financial concerns. Key among the successful strategies employed by the French is the use of government mediators to help entrepreneurs secure private and public funding, which in turn aids job growth and sales.
Without such programs in place in the U.S., particularly in light of the recent "Small Business Administration (SBA) cuts, entrepreneurs remain unsupported in their efforts to keep their small businesses afloat. This environment has made accounts receivable financing particularly relevant, as it is an ideal source of working capital solutions for today’s small business owners.
Factoring companies provide alternative business financing by purchasing small business’ outstanding invoices, providing fast access to the operating capital those companies need to stay afloat, recover, and grow. Invoice factoring also helps small businesses focus more on their core competencies and less on managing their accounts receivables. Factoring companies essentially serve not only as a source of funding, but also as an outsourced accounts receivable department, handling much of the invoicing and documentation for their clients.
For more information about accounts receivable factoring companies and services, consult your financial advisor.
