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Anchor Funding Services, Inc. (AFNG) Reports Sharp Revenue Increases

|Includes: Anchor Funding Svcs (AFNG)

Anchor Funding Services, Inc. announced at Monday’s closing bell strong revenue gains over the comparable period a year ago. The company seems to be capitalizing on traditional banks’ unwillingness to make loans to companies who lack gold-ball credit.

The Boca Raton company said its Q2 finance revenues grew to $731,848, an increase of 12.9% or $83,618 over the comparable period of 2010. Six-month 2011 finance revenues came in at $1,319,140, representing a gain of 19.7% or $217,558 over the comparable period of 2010.

A company statement attributed its finance revenue gains to “the company’s investments in its sales initiatives and growth among certain Anchor portfolio clients.”

Anchor declared a net income of $173,494 for Q2 as compared to a net loss of $(563,246) for Q2 2010. Zooming out for the lookback, Anchor’s net income for this year through the end of Q2 shows $190,531, contrasted against a net loss of $654,857 for the same period of 2010.

“Our improved net income for the second quarter and first six months of 2011 is due to increased finance revenues, a 6% reduction in operating expenses and a 13% decrease in interest expense,” said the company press release.

The company noted that “meeting the stringent lending criteria of commercial banks remains difficult for small businesses seeking working capital… we are implementing various ways to obtain business opportunities from bank rejections. Anchor is often able to provide working capital to small businesses when banks cannot.”

CEO Morry F. Rubin went on to say, “We are excited about our fourth consecutive quarter of profitable results from continuing operations. Since having completed our private placement of convertible preferred securities in April 2007, we have organically grown the portfolio from less than a dozen clients in a few states to servicing more than 130 companies in more than 30 states so far in 2011. We are focused on adding additional credit worthy clients to our national portfolio and seeking acquisition opportunities while remaining vigilant in securing opportunities to reduce our internal cost of funds.”

Anchor aggressively pursues the areas of accounts receivable financing, purchase order funding, and other aspects of finance for small and mid-size businesses in the U.S.

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