The Federal Reserve is Fighting for Business

March 30, 2009 - PRLog -- The Federal Reserve is not kidding when they say that they are going to do everything within their power to help the economy recover and stabilize pricing.

As stated in the Wednesday March 18, 2009 edition of the NY Times:

WASHINGTON " Saying that the recession continues to deepen, the Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the mortgage market and longer-term Treasury securities in order to revive the economy.

If the Federal Reserve keeps up its attach on the recession the days until we start to see a recovery will come sooner than many economists predicted.

It has only been 6 months since the Central Bank was sitting with $900 billion on its balance sheet, now with nearly $2 trillion, the world knows that the Federal Reserve is serious about its convictions to get the US economy back on track.

In todays NY Times it also stated:

Fed officials have said they hope to expand the program next month, possibly to include the huge market for commercial mortgages, and both the Fed and Treasury hope the program will eventually provide up to $1 trillion in total financing.

So what does all this mean?  Well for starters, it is expected that the Financial Institutions will be able to write more loans for people to buy more products to put more people to work so they can buy more and get more loans.and so on.

The biggest question is how will the process get started?  We all know that companies are not going to hire with the expectation of future orders, and consumers are not going to start buying until they know they have jobs to cover the bills they createbut someone has to go first.  Any volunteers?

The US and Canadian Governments need to start buying more since they are the ones with the money.  One they get the orders in then the suppliers will start hiring and the people that are hired will start buying  so the suppliers will start hiring and so on

I am certain this will be on its way shortly as there is much planning now in both the United States and Canada to do just that, and it will not happen a day to soon either.

So the next hurdle will be for companies to get the financing they need to accept these orders.  Even with the abundance of funds for companies, many companies will not qualify for bank loans due to their financials over the last couple of year.

This is the time to speak to a Professional Commercial Finance Broker as they will have far more products available to them than the banks have so you can actually accept the orders and get them out the door.

My prediction is that Accounts Receivable Factoring and Purchase Order Finance will play a huge role in our immediate economy so it will not be a bad idea to get set up for it so you are not scrambling to find a funder.

Wade Henderson is a recognized Expert in the Business Finance World with over 14 years Experience in the Commercial Lending Field and a strong reputation for getting the deal done. Visit his Business Finance Website to put his experience to work for you.
Discount Factoring * Purchase Order Finance * Equipment  Leasing * Commercial Property Loans

# # #

IMM Financial Solutions Inc. we are the Source for your total Business Financing. From Accounts Receivable, Purchase Order and Inventory Funding, Commercial Equipment and Commercial Real Estate Financing…we cover it all.