| By :
Kristin Gabriel
The news is thatn the credit market remains bleak, according to a Wall Street Journal report ($) today, stating that bank lending in the U.S. saw its sharpest drop since 1942. Increasing bank lending is key to the Obama administration's goal to help small businesses and to create more jobs. Small to medium-sized businesses are seeking alternative funding sources like factoring accounts receivables so they can survive and grow. The actual definition of a mid-sized business includes the fact that it typically has under 500 employees in the US, about 250 in the European Union, and fewer than 200 in the country of Australia. Of course there are other factors used including annual sales, the value of a company's assets and net profits, and in the European Union, turnover, balance sheet totals and headcount are used. Following are 2010 trends: There will be ongoing downsizing of companies; More consolidation through mergers or acquisitions; continued growth in outsourcing; Supply chain logistics services; Hiring temps; Offshore globalization; Senior citizens are a big commodity; and baby boomers are retiring. There is another trend for mid-sized businesses this year is factoring invoices. After the economic challenges over the last year, there are a number of small to medium-sized businesses that are finding that they can leverage their customer's invoices to kee p their company running smoothly and avoid bankrupsy. Factoring accounts receivables provides the freedom to grow. While many Americans are out of work, they have started small businesses t survive. Many have scrambled to borrow money from their savings accounts, family or friends. And now these hard working folks are working to keep their new businesses afloat. Business entrepreneurs don't realize is how effective the strategy of factoring accounts receivables can be to maintain solid growth. In order not to run into the problem of a cash flow crisis, factoring invoices has become a popular strategic maneuver. Never take funds from an angel investor if you don't know you can multiply it. What's more, raising funds from investors is often faster after you have revenues because they like the idea of investing in a business that's already generating revenue. The latest report on lending from the Federal Deposit Insurance Corp.,(FDIC) shows the banking industry is still struggling even though the economy shows signs rebounding from the recession. FDIC statistics also said 702 banks are in danger of failing, a 16-year high; more than 5 percent of loans are past due, the worst performance since officials began tracking data 26 years ago. Last year there were 140 bank failures. It's expected to exceed that number this year.
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