BOCA RATON, Fla., May 13 /PRNewswire-FirstCall/ -- Anchor Funding
Services, Inc. (OTC Bulletin Board: AFNG) announced today its results for its
first quarter of 2008. The company reported 2008 finance revenues and net loss
of $211,661 and $(422,881) as compared to finance revenues and net loss of
$100,106 and $(129,907) for the comparable prior year period. The increase in
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 the balance of fiscal 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-QSB 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.
SOURCE Anchor Funding Services, Inc.
Morry F. Rubin, Chairman and C.E.O. of Anchor Funding Services, Inc.,
+1-866-950-6669 ext. 302, Mrubin@anchorfundingservices.com
