IFG Network’s invoice factoring blog published some interesting information released by PayNet Inc. earlier this week that the invoice funding specialists at PRN Funding wanted to share with The Factoring Blog’s readers:
First of all, PayNet Inc. collects real-time loan data from more than 200 leading capital equipment lenders, and they shared data that shows that borrowing by small businesses increased by 14 percent in January 2011, compared to January 2010. Initially, it may seem like this is an early indicator that small businesses are growing, however, it’s not as aggressive as industry experts had hoped.
For example, William Phelan, PayNet’s president and founder, thinks otherwise. He was quoted on IFG’s blog, saying: “We are calling it the long-haul recovery.” He further explained that small business borrowing will return to pre-recessions levels for at least another year, maybe two.
Moreover, economic analysts believe that even with zero-percent interest rates, small companies don’t want to borrow money and go into debt until they are certain they have customers and/or demand for their products.
NOTE FROM PRN FUNDING: Small business owners can and should consider factoring as an alternative way to finance their businesses because they don’t have to go into debt to help their cash flow.
Click here to read more of PayNet’s January stats.