2009-04-25 07:05:15 - April 24, 2009. Bethesda, MD. In another sign that the housing market is starting to gain impetus, IFG Network announced that its accounts receivable financing, or invoice factoring, grew 40% in the fourth quarter of 2008. Figures for the first quarter 2009 will be disclosed next week, but preliminary figures indicate the growth trend is increasing.

IFG Network is one of the few companies in the factoring industry that offer construction invoice factoring. “Contractors have special risks, costs and billing challenges and many factoring companies do not have programs for these industries,” said Jan Cunningham, vice president, Interface Financial Group, Inc. “IFG specializes in single invoice factoring and benefits firms that do not get paid for 30, 60 or 90 days by advancing up to 90 percent against invoices.”

Invoice factoring is when a business sells its accounts receivable invoices at a discount. Factoring is different from a bank loan in several ways. Banks base their decisions on a company’s credit worthiness, whereas factoring is based on the value of the receivables. Factoring is not a loan

– it is the purchase of a financial asset, or the receivable. Bank loans involve two parties, while factoring involves three parties.

“IFG’s service has been great. We are finding the services and the process IFG offers has been everything and more,” said Crystina Bass, vice president, BAT Construction Group, LLC.

IFG was founded in 1972 to provide short-term working capital to help small to medium sized businesses grow. The IFG organization operates on a local level, providing clients with local knowledge and experience and business expertise in numerous diverse areas including accounting, finance, law, marketing and b