BOCA RATON, Fla.--(Business Wire)--
Anchor Funding Services, Inc. (OTCBB:AFNG) announced today its
results for 2007. The company reported 2007 finance revenues and net
loss of $423,024 and $(1,046,680) as compared to finance revenues and
net income of $558,816 and $141,885 for the comparable prior year
period. The net loss is attributable to the company's investments in
launching various sales initiatives, hiring marketing and operations
personnel, an increase in general and administrative costs and
compliance costs as a public reporting company.
Morry F. Rubin, CEO stated that, "Since having completed our
private placement on April 5, 2007 we have begun to make investments
to capitalize on the growth opportunity in the U.S. factoring
industry. While ramping up our organic growth initiatives we are also
exploring acquisition opportunities of other U.S. factoring firms
which would enhance our ability to increase revenues and profits, add
additional factoring services and increase our geography and clients."
Factoring is the purchase of a company's accounts receivable,
which provides businesses with critical working capital so they can
meet their operational costs and obligations while waiting to receive
payment from their customers. This is particularly important for small
businesses experiencing rejections and delays from banks which are
increasingly tightening their credit requirements.
Anchor may provide funding to businesses where the performance of
a service or the delivery of a product can be verified. We have the
ability to check a company's credit and evaluate its ability to pay
across most industries. Typically, small businesses do not have
adequate resources to manage the credit and A/R collection functions
internally and cannot afford to provide their customers extended
credit terms.
Factoring as it functions today has been in existence for nearly
200 years. Its historical focus has been in the textile, furniture and
apparel industries, which provides products to major retailers. The
factoring industry has expanded beyond the textile and apparel
industries into other mainstream businesses. According to the
Commercial Finance Association, the factoring Industry achieved U.S.
revenues of $127 billion in 2006.
Mr. Rubin also stated that, "Within our industry we are targeting
specific sectors which demonstrate high demand for factoring services
such as, transportation, and recently launched a dedicated
transportation finance division, TruckerFunds.com. TruckerFunds.com
purchases freight bills from small fleets and owner/operators across
the U.S. We are excited about our future expansion opportunities for
2008 and beyond in the factoring industry which is highly fragmented
and not dominated by any single firm(s). We will continue to
communicate important developments as they occur."
About Anchor
Anchor provides innovative accounts receivable funding to small
U.S businesses. Our funding facility, which is based upon
creditworthiness of accounts receivable, provides rapid and flexible
financing to support small businesses' daily capital needs.
Additional Information
For additional information, a copy of Anchor's Form 10-KSB can be
obtained on the Internet by going to www.sec.gov, clicking "Search for
Company filings," then clicking "Companies & Other Filers," typing in
our company name and clicking "find Companies."
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995.
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the company to be materially different from any future
results, performances or achievements express or implied by such
forward-looking statements. The forward-looking statements are subject
to risks and uncertainties including, without limitation, changes in
levels of competition, possible loss of customers, and the company's
ability to attract and retain key personnel.
Anchor Funding Services, Inc., Boca Raton
Morry F. Rubin, Chairman and CEO, 866-950-6669 Ext. 302
Mrubin@anchorfundingservices.com
Copyright Business Wire 2008
