The Federal Reserve Urges Banks to Aid Small Businesses

Today news for small businesses that was posted in the Wall Street Journal featured Ben Bernanke,  Federal Reserve Chairman urging banks and regulators  to seek out ways to ensure that small businesses get the credit they need to create jobs. He said that making credit accessible to sound small businesses is crucial to our economic recovery. He also believes that not enough is being done to ensure that loans can be obtained by deserving, sound small businesses who depend on access to credit critically. He also cited outstanding loans to small businesses have declined to less than $670 billion in Q1 of 2010 from about $710 billion in Q2 of 2008. Small business has long been thought of as the key to unemployment, which is still high, even as the jobless rate edged down to 9.5 percent in June from 9.7 percent in May.  The Fed has been on a  fact-finding mission, to identify how to improve credit access for small firms which account for about 60 percent of job creation, since February.  Forty meetings have taken place around the United States with small businesses, community leaders and bankers.  All have tried to identify obstacles that have prevented lending as needed. These facts are all that much more reason for small businesses to seriously think about invoice factoring. Companies like The Interface Financial Group (IFG) has long been providing financial resources such as factoring to businesses in need, whether it is their entire accounts receivables factoring or single invoice factoring, also known as spot factoring, when cash is needed during a time of stress.  Go to www.acdfinancial.com for more information about factoring.  Original post blogged on b2evolution. Courtesy of IFG Network.