It is mid-year 2012, and small to medium-sized enterprises (SMEs) in the U.S. are still struggling to make ends meet. It is no secret that the U.S. economy slowed down drastically during the first half of 2012. The annual growth rate being at just 1.75 percent. What is sad for small to medium-sized businesses (SMEs) is that the economy is expected to continue to be weak during the last two quarters of 2012. Many of these SMEs have opted to service via an age old strategy known as invoice factoring.The economy in this election year has just not recovered as fast as we would all like.

Here are some of components that are driving the slowdown:

-Shrinking government spending

-Business investment and consumption of goods

-Uncertainty regarding the prospects of higher taxes and lower government spending in early 2013

-The recession in Europe

-Slowdowns internationally (Brazil, China, India, and other emerging countries) thus hurting U.S. exports and profits

-Investor confidence has been deteriorating in recent months; same with consumer and business confidence

-Profits (corporate) declined thanks to operations in the rest of the globe

There is also some positive factors support the economy such as:

-Construction and housing are recovering.

-Commodity prices and oil are much lower than in early 2012.

-Interest rates at historically low levels

Now it is unlikely that the U.S. economy will rapidly expand. The Conference Board believes that the U.S. economy will grow at around an annualized 1.5 percent for the remainder of 2012.

What's worse, waiting on payments from customers is nothing less than exasperating for most business owners. And if you are like most businesses, you may not be able to complete a contract or your will be delayed in signing on new contracts as a result of insufficient funds and delayed payments. Cash flow is required, period.

Payroll requirements demands a very steady cash flow and if a customer is late with payment, you might need another source of income to continue running the business as employees will not wait, If unexpected responsibilities arise, such as repairs or hiring additional employees, being able to quickly attain working capital is invaluable to the survival and success of a business.

Further, you probably won't get approvals, much less expedited financing, from many lending institutions. They demand to go over the business plan, financials, and credit history. This process can be time-consuming, involving a lot of paperwork. So, rather than going door to door seeking approval for financing, get involved with a company that offers invoice factoring. Invoice factoring requires minimal paperwork, making the process swift and efficient. Also known as accounts receivable factoring, it focuses more on the credit worthiness of the customers instead of the business.

Ultimately, the productivity of your business will not be compromised by last-minute changes or an alteration in customer payment performance. Even with the unpredictability of the current economy, businesses can rest assured that accounts receivable factoring will provide financial assistance as soon as it is needed.