Financing Outside the Box!
Q. Are you getting the financing your company needs and deserves?
Q. Is your financial institution holding back your growth?
Q. Are expansion plans on hold due to lack of working capital?
A. If so, it’s time to think outside of the established financial resources box!
The Interface Financial Group (IFG) provides innovative solutions to these questions in a well-established franchise format mode.
IFG has a long history, over 46 years, of servicing client companies that are in a growth mode but for whatever reason they find it hard or even impossible to access that all-important growth capital from the conventional marketplace.
‘Cash Is King’ is an old and perhaps even tired expression, however it is still very much appropriate today – companies that operate with good cash reserves can often achieve their growth plans faster than those companies that struggle with cash flow issues.
Ensuring a healthy cash flow is key to all businesses, and healthy cash flow depends on customers paying their invoices in a timely fashion – something that is often hard to achieve and often beyond the ability of the supplier. In this day and age customers are taking longer and longer to pay what they owe, using their suppliers as a financing vehicle. Net 30-day terms have now become Net 60 days – if you are lucky!
How does IFG solve the problem? Simply by buying invoices once they are created, and providing their clients with instant cash flow – the sale basically becomes a ‘cash-on-delivery’ transaction.
By buying the invoices, and it should be noted that this is a buy/sell transaction; there is no lending involved - IFG handles the waiting period to get paid, leaving the client with cash to grow their business. IFG pioneered this service in North America over four decades ago, and now offers similar services in 8 countries. Another innovative feature is that IFG delivers the service through what is now a proven franchise channel. Working in concert with franchisees, IFG has created a financing vehicle that resolves cash flow issues for clients, while at the same time creating growth opportunities for their franchisees.
Some of the facets that make the IFG 50/50 franchise stand out from the crowd:
- franchisee and franchisor always handle all transactions together
- franchisor provides capital leverage to enhance the franchisee’s ROI
- franchisor delivers a virtually paperless franchise for their franchisees
The franchise is styled as 50/50 because the franchisee and the franchisor always work in concert with each other, handling the necessary due diligence in a transaction together with the financing of a transaction. This naturally creates a substantial comfort zone for franchisees as they are now part of a syndicate with their franchisor who has over 46 years of experience and history.
Franchisees are engaged in financing the purchase of invoices with the franchisor, and the level of their involvement is geared to once again create a comfort zone for the franchisee. With the leverage element provided by the franchisor, franchisees will earn income on capital that they have not invested – in other words they are working with ‘other people’s money’ and as such creating a return greater than there capital contribution.
IFG 50/50 franchisees are engaged in all the ‘people’ aspects of a transaction, while the franchisor handles all of the paperwork involved. Once again this represents another substantial comfort zone for franchisees inasmuch as they are not involved in form filling, contract preparation, ledgering etc. Their focus is on working with business owners and resolving their issues in a people-to-people approach. The IFG franchise represents a technology enhanced and technology advanced system. With a state-of-the-art operating platform, transactions can be completed in hours rather than days, thus enhancing the service to the clients.
The Interface Financial Group offers a rare combination of services – being able to step in and help their clients when “the bank says no or no more”, while at the same time providing a vehicle for individuals transitioning from the corporate world into self-employment and business ownership with a proven model, where franchisee and franchisor always work together creating a three way success story – it’s success for the client, success for the franchisor and, of course, success for the franchisee.