Invoice discounting 'helps small firms face economic challenges'

13/02/2008

Invoice discounting can help small businesses adapt to the economic challenges they face, it has been suggested.

According to the US-based business Interface Financial Group (IFG), small companies continue to seek out its invoice discounting services to solve their cashflow problems and this is particularly the case during periods of economic uncertainty.

The group has maintained that the cut in interest rates introduced recently by the Federal Reserve will not be enough to solve the financial difficulties being experienced by small firms across the US.

"Our clients always seem to get excited when rates drop only to find that it did nothing to help their particular situation," said IFG's president David Banfield.

Mr Banfield went on to highlight the important role the small business sector plays in America's wider economy as a provider of employment and a contributor of tax revenues.

Institute of Chartered Accountants in England and Wales revealed this week that confidence among finance professionals in the UK has dipped in recent months partly because of the prospect of a recession in the US.