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Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2013 shares
Document and Entity Information [Abstract]
Entity Registrant Name	Anchor Funding Services, Inc.
Entity Central Index Key	0001397047
Trading Symbol	afng
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	18,634,369
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2013	Dec. 31, 2012
CURRENT ASSETS:
Cash	$ 697,269	$ 610,439
Retained interest in purchased accounts receivable, net	7,517,934	7,019,463
Due from client	372,149
Earned but uncollected fee income	174,112	168,805
Prepaid expenses and other	96,056	100,998
Total current assets	8,857,520	7,899,705
PROPERTY AND EQUIPMENT, net	23,517	14,257
SECURITY DEPOSITS	6,023	6,023
Total Assets	8,887,060	7,919,985
CURRENT LIABILITIES:
Due to financial institution	5,966,448	4,977,763
Accounts payable	46,259	86,772
Accrued payroll and related taxes	55,458	69,338
Accrued expenses	33,882	59,252
Collected but unearned fee income	29,737	28,642
Total current liabilities	6,131,784	5,221,767
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
PREFERRED STOCK, net of issuance costs of $1,209,383	671,409	671,409
COMMON STOCK	1,863	1,863
ADDITIONAL PAID IN CAPITAL	7,500,835	7,496,693
ACCUMULATED DEFICIT	(5,418,831)	(5,471,747)
Total Stockholders' Equity	2,755,276	2,698,218
Total Liabilities and Stockholder's Equity	$ 8,887,060	$ 7,919,985

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Mar. 31, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Issuance cost of convertible preferred stock (in dollars)	$ 1,209,383	$ 1,209,383

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Income Statement [Abstract]
FINANCE REVENUES	$ 602,607	$ 542,496
INTEREST EXPENSE - financial institution	(102,381)	(90,323)
NET FINANCE REVENUES	500,226	452,173
(PROVISION) BENEFIT FOR CREDIT LOSSES
FINANCE REVENUES, NET OF INTEREST EXPENSE AND CREDIT LOSSES	500,226	452,173
OPERATING EXPENSES	447,310	415,404
INCOME BEFORE INCOME TAXES	52,916	36,769
INCOME TAXES
NET INCOME	$ 52,916	$ 36,769
NET INCOME PER SHARE:
Basic (in dollars per share)
Dilutive (in dollars per share)
WEIGHTED AVERAGE SHARES:
Basic (in shares)	18,634,369	18,634,369
Dilutive (in shares)	20,691,517	20,516,132

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2013 - USD ($)	Preferred Stock	Common Stock	Additional Paid in Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2012	$ 671,409	$ 1,863	$ 7,496,693	$ (5,471,747)	$ 2,698,218
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Provision for compensation expense related to issued stock options			2,226		2,226
Provision for compensation expense related to issued warrants			1,916		1,916
Net income				52,916	52,916
Balance (unaudited) at Mar. 31, 2013	$ 671,409	$ 1,863	$ 7,500,835	$ (5,418,831)	$ 2,755,276

- Definition

Increase in additional paid in capital due to warrants issued during the period. Includes also the proceeds of debt securities issued with detachable stock purchase warrants that are allocable to the warrants. These warrants qualify for equity classification and provide the holder with a right to purchase stock from the entity.

+ References

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 52,916	$ 36,769
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	4,163	5,041
Compensation expense related to issuance of stock options	2,226	1,302
Compensation expense related to issuance of warrants	1,916	3,834
(Increase) in retained interest in purchased accounts receivable	(498,471)	(857,153)
(Increase) in due from client	(372,149)
(Increase) decrease in earned but uncollected	(5,307)	21,186
Decrease (increase) in prepaid expenses and other	4,942	(1,522)
(Decrease) increase in accounts payable	(40,513)	27,635
(Decrease) in accrued payroll and related taxes	(13,880)	(2,792)
Increase (decrease) in collected but not earned	1,095	(4,768)
(Decrease) increase in accrued expenses	(25,370)	3,525
Net cash used in operating activities	(888,432)	(766,943)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(13,423)	(2,349)
Net cash used in investing activities	(13,423)	(2,349)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from financial institution, net	988,685	986,391
Net cash provided by financing activities	988,685	986,391
INCREASE IN CASH	86,830	217,099
CASH, beginning of period	610,439	306,571
CASH, end of period	$ 697,269	$ 523,670

BACKGROUND AND DESCRIPTION OF BUSINESS	3 Months Ended
BACKGROUND AND DESCRIPTION OF BUSINESS	Mar. 31, 2013
Business Description and Basis Of Presentation [Abstract]
BACKGROUND AND DESCRIPTION OF BUSINESS	1. BACKGROUND AND DESCRIPTION OF BUSINESS: The consolidated financial statements include the accounts of Anchor Funding Services, Inc. (formerly BTHC XI, Inc.) and its wholly owned subsidiary, Anchor Funding Services, LLC (“Anchor”). Anchor Funding Services, Inc. is a Delaware corporation. Anchor Funding Services, Inc. has no operations; substantially all operations of the Company are the responsibility of Anchor Funding Services, LLC. Anchor Funding Services, LLC is a North Carolina limited liability company. Anchor Funding Services, LLC was formed for the purpose of providing factoring and back office services to businesses located throughout the United States of America.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Principles of Consolidation - The accompanying consolidated financial statements include the accounts of Anchor Funding Services, Inc. and, its wholly owned subsidiary, Anchor Funding Services, LLC.

Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition – The Company charges fees to its customers in one of two ways as follows:

1)	Fixed Transaction Fee. Fixed transaction fees are a fixed percentage of the purchased invoice and purchase order advance. This percentage does not change from the date the purchased invoice is funded until the date the purchased invoice is collected.

Variable Transaction Fee. Variable transaction fees are variable based on the length of time the purchased invoice and purchase order advance is outstanding. As specified in its contract with the client, the Company charges variable increasing percentages of the purchased invoice or purchase order advance as time elapses from the purchase date to the collection date.

For both Fixed and Variable Transaction fees, the Company recognizes revenue by using one of two methods depending on the type of customer. For new customers the Company recognizes revenue using the cost recovery method. For established customers the Company recognizes revenue using the accrual method.

Under the cost recovery method, all revenue is recognized upon collection of the entire amount of purchased accounts receivable.

The Company considers new customers to be accounts whose initial funding has been within the last three months or less. Management believes it needs three months of history to reasonably estimate a customer’s collection period and accrued revenues. If three months of history has a limited number of transactions, the cost recovery method will continue to be used until a reasonable revenue estimate can be made based on additional history. Once the Company obtains sufficient historical experience, it will begin using the accrual method to recognize revenue.

For established customers the Company uses the accrual method of accounting. The Company applies this method by multiplying the historical yield, for each customer, times the amount advanced on each purchased invoice outstanding for that customer, times the portion of a year that the advance is outstanding. The customers’ historical yield is based on the Company’s last six months of experience with the customer along with the Company’s experience in the customer’s industry, if applicable.

The amounts recorded as revenue under the accrual method described above are estimates. As purchased invoices and purchase order advances are collected, the Company records the appropriate adjustments to record the actual revenue earned on each purchased invoice and purchase order advance. Adjustments from the estimated revenue to the actual revenue have not been material.

Retained Interest in Purchased Accounts Receivable – Retained interest in purchased accounts receivable represents the gross amount of invoices purchased and advances on purchase orders from clients less amounts maintained in a reserve account. For factoring transactions, the Company purchases a customer’s accounts receivable and advances them a percentage of the invoice total. The difference between the purchase price and amount advanced is maintained in a reserve account. The reserve account is used to offset any potential losses the Company may have related to the purchased accounts receivable. For purchase order transactions the company advances and pays for 100% of the product’s cost.

The Company’s factoring and security agreements with their customers include various recourse provisions requiring the customers to repurchase accounts receivable if certain conditions, as defined in the factoring and security agreement, are met.

Senior management reviews the status of uncollected purchased accounts receivable and purchase order advances monthly to determine if any are uncollectible. The Company has a security interest in the accounts receivable and inventory purchased and, on a case-by-case basis, may have additional collateral. The Company files security interests in the property securing their advances. Access to this collateral is dependent upon the laws and regulations in each state where the security interest is filed. Additionally, the Company has varying types of personal guarantees from their customers relating to the purchased accounts receivable and purchase order advances.

Management considered approximately $80,449 of their March 31, 2013 and December 31, 2012 retained interest in purchased accounts receivable to be uncollectible.

Management believes the fair value of the retained interest in purchased accounts receivable approximates its recorded value because of the relatively short-term nature of the purchased receivable and the fact that the majority of these invoices have been subsequently collected. As of March 31, 2013, accounts receivable purchased over 90 days old and still accruing fees totaled approximately $307,300.

Advertising Costs – The Company charges advertising costs to expense as incurred. Total advertising costs were approximately $66,000 and $68,000 for the quarters ended March 31, 2013 and 2012, respectively.

Earnings per Share (“EPS”) – Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Dilutive earnings per share include the potential impact of dilutive securities, such as convertible preferred stock, stock options and stock warrants. The dilutive effect of stock options and warrants is computed using the treasury stock method, which assumes the repurchase of common shares at the average market price.

Under the treasury stock method, options and warrants will have a dilutive effect when the average price of common stock during the period exceeds the exercise price of options or warrants.

The following tables present a reconciliation of the components used to derive basic and diluted EPS for the periods indicated:
	2013						2012
			(Denominator)						(Denominator)
			Weighted-		Per				Weighted-		Per
	(Numerator)		Average		Share		(Numerator)		Average		Share
	Net Income		Shares		Amount		Net Income		Shares		Amount
Three Months Ended March 31,
Basic EPS	$	52,916		18,634,369	$	-	$	36,769		18,634,369	$	-
Effect of Dilutive Securities – Options and
Convertible Preferred Stock		-		2,057,148		-		-		1,881,763		-
Diluted EPS	$	52,916		20,691,517	$	-	$	36,769		20,516,132	$	-

Stock Based Compensation - The fair value of transactions in which the Company exchanges its equity instruments for employee services (share-based payment transactions) is recognized as an expense in the financial statements as services are performed.

Compensation expense is determined by reference to the fair value of an award on the date of grant and is amortized on a straight-line basis over the vesting period. We have elected to use the Black-Scholes-Merton (BSM) pricing model to determine the fair value of all stock option awards.

See Note 8 for the impact on the operating results for the three months ended March 31, 2013 and 2012.

Fair Value of Financial Instruments – The carrying value of cash equivalents, retained interest in purchased accounts receivable, due to financial institution, accounts payable and accrued liabilities approximates their fair value.

Cash and Cash Equivalents – Cash and cash equivalents consist primarily of highly liquid cash investment funds with original maturities of three months or less when acquired.

Income Taxes – Effective January 31, 2007, the Company became a “C” corporation for income tax purposes. In a “C” corporation income taxes are provided for the tax effects of transactions reported in the consolidated financial statements plus deferred income taxes related to the differences between financial statement and taxable income.

The primary differences between financial statement and taxable income for the Company are as follows:

· Expenses related to the issuance of equity instruments

· Use of the reserve method of accounting for bad debts

· Net operating loss carryforwards.

The deferred tax asset represents the future tax return consequences of utilizing these items. Deferred tax assets are reduced by a valuation reserve, when management is uncertain if the net deferred tax assets will ever be realized.

The Company applied the provisions of ASC 740-10-50, “Accounting For Uncertainty In Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. The Company applied this guidance to all its tax positions, including tax positions taken and those expected to be taken, under the transition provision of the interpretation. For the three months ended March 31, 2013 and 2012, the Company concluded that it had no material uncertain tax positions.

The Company classifies interest accrued on unrecognized tax benefits with interest expense. Penalties accrued on unrecognized tax benefits are classified with operating expenses.

Recent Accounting Pronouncements –

The FASB amended the Comprehensive Income topic of the ASC in February 2013. The amendment addresses reporting of amounts reclassified out of accumulated other comprehensive income. Specifically, the amendment does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendment does require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, in certain circumstances an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendment will be effective for the Company on a prospective basis for reporting periods beginning after December 15, 2012. Early adoption is permitted. The Company adopted this guidance effective January 1, 2013, as required, and this adoption did not have a significant impact to our consolidated financial statements.

In October 2012, the FASB issued Accounting Standards Update ("ASU") 2012-04, "Technical Corrections and Improvements," portions of which were effective upon issuance and the remaining portion was effective for fiscal periods beginning after December 15, 2012. The amendments in this ASU cover a wide range of topics in the FASB ASC and are categorized in two sections, "Technical Corrections and Improvements", and "Conforming Amendments Related to Fair Value Measurements." The first section created source literature amendments, clarified guidance and corrected references, and relocated guidance throughout the ASC. The second section conformed terminology and clarified guidance in various topics of the ASC to fully reflect the fair value measurement and disclosure requirements of ASC Topic 820. No new fair value measurements were introduced and the application of the requirements of A5C Topic 820 is not anticipated to change. The Company adopted this guidance as required and the adoption did not have a significant impact to our consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact in the Company’s financial position, results of operations or cash flows.

RETAINED INTEREST IN PURCHASED ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2013

Loans, Notes, Trade and Other Receivables Disclosure [Abstract]

RETAINED INTEREST IN PURCHASED ACCOUNTS RECEIVABLE

3. RETAINED INTEREST IN PURCHASED ACCOUNTS RECEIVABLE:

Retained interest in purchased accounts receivable consists of the following:

	March 31, 2013			December 31, 2012
Purchased invoices	$	9,076,705		$	8,921,203
Purchase order advances		90,000			21,156
Reserve account		(1,568,322	)		(1,842,447	)
Allowance for uncollectible invoices		(80,449	)		(80,449	)
	$	7,517,934		$	7,019,463

Retained interest in purchased accounts receivable consists, excluding the allowance for uncollectible invoices, of United States companies in the following industries:

	March 31, 2013		December 31, 2012
Staffing	$	280,684	$	185,557
Transportation		1,685,042		1,773,290
Service		4,385,993		4,528,668
Manufacturing		832,183		612,397
Apparel		414,481		-
	$	7,598,383	$	7,099,912

Adjustments to the allowance for uncollectible invoices were as follows:

	For the quarters ended March 31,
	2013		2012
Balance - beginning of quarter	$	80,449	$	17,500
Provision for credit losses		-		-
Write-offs		-		-
Balance - end of quarter	$	80,449	$	17,500

Total purchased invoices and purchase order advances were as follows:

	For the quarters ended March 31,
	2013		2012
Purchased invoices	$	23,538,188	$	20,245,117
Purchase order advances		90,000		96,730
	$	23,628,188	$	20,341,847

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

DUE FROM CLIENT	3 Months Ended
DUE FROM CLIENT	Mar. 31, 2013
Due From Client [Abstract]
DUE FROM CLIENT	4. DUE FROM CLIENT In March 2013, the Company advanced a client $372,149 in excess of its accounts receivable. This amount was included in a subsequent invoice for completed services that were purchased by the Company.

PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

5. PROPERTY AND EQUIPMENT:

Property and equipment consist of the following:

	Estimated
	Useful Lives	March 31, 2013			December 31, 2012
Furniture and fixtures	2-5 years	$	46,818		$	46,818
Computers and software	3-7 years		200,928			187,505
			247,746			234,323
Less: accumulated depreciation			(224,229	)		(220,066	)
		$	23,517		$	14,257

Depreciation expense was $4,163 and $5,041 for the quarters ended March 31, 2013 and 2012, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

DUE TO FINANCIAL INSTITUTION	3 Months Ended
DUE TO FINANCIAL INSTITUTION	Mar. 31, 2013
Debt Disclosure [Abstract]
DUE TO FINANCIAL INSTITUTION	6. DUE TO FINANCIAL INSTITUTION: On November 8, 2011, Anchor entered into a Rediscount Credit Facility with a Commercial Bank that was effective November 30, 2011 and replaced its prior credit facility. The maximum amount that can be borrowed under the facility is $10 million and the Bank will advance up to 80% of Anchor's advances to its clients. Anchor pays interest on advances monthly at the 90 Day Libor Rate plus 6.25% and various other monthly fees as defined in the agreement. The agreement requires that Anchor maintain at all times a ratio of debt to tangible net worth of not more than four to one (4:1). As of March 31, 2013, the Company was in compliance. The agreement contains customary representations and warranties, events of default and limitations, among other provisions. The agreement is collateralized by a first lien on all Anchors' assets. The agreement’s anniversary date is November 30, 2013 and automatically renews each year for an additional year provided that the Company has not provided 60 days’ notice to the Bank in advance of the anniversary date. This facility contains certain standard covenants, representations and warranties for loans of this type. In the event that we fail to comply with the covenant(s) and the lender does not waive such non-compliance, we could be in default of our credit facility, which could subject us to penalty rates of interest and accelerate the maturity of the outstanding balances in addition to other legal remedies, including foreclosure on collateral. The Company’s President and CEO have provided validity guarantees to the Bank. Anchor owed this financial institution $5,966,448 as of March 31, 2013 and $4,977,763 as of December 31, 2012.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

CAPITAL STRUCTURE

3 Months Ended

Mar. 31, 2013

Stockholders Equity Note [Abstract]

CAPITAL STRUCTURE

7. CAPITAL STRUCTURE:

The Company’s capital structure consists of preferred and common stock as described below:

Preferred Stock – The Company is authorized to issue 10,000,000 shares of $.001 par value preferred stock. The Company’s Board of Directors determines the rights and preferences of its preferred stock.

On January 31, 2007, the Company filed a Certificate of Designation with the Secretary of State of Delaware. Effective with this filing, 2,000,000 preferred shares became Series 1 Convertible Preferred Stock. Series 1 Convertible Preferred Stock will rank senior to Common Stock.

Series 1 Convertible Preferred Stock is convertible into 5.1 shares of the Company’s Common Stock. The holder of the Series 1 Convertible Preferred Stock has the option to convert the shares to Common Stock at any time. Upon conversion all accumulated and unpaid dividends will be paid as additional shares of Common Stock.

The dividend rate on Series 1 Convertible Preferred Stock is 8%. Dividends are paid annually on December 31st in the form of additional Series 1 Convertible Preferred Stock unless the Board of Directors approves a cash dividend. Dividends on Series 1 Convertible Preferred Stock shall cease to accrue on the earlier of December 31, 2009, or on the date they are converted to Common Shares. Thereafter, the holders of Series 1 Convertible Preferred Stock have the same dividend rights as holders of Common Stock, as if the Series 1 Convertible Preferred Stock had been converted to Common Stock.

Common Stock – The Company is authorized to issue 65,000,000 shares of $.0001 par value Common Stock. Each share of Common Stock entitles the holder to one vote at all stockholder meetings. Dividends on Common Stock will be determined annually by the Company’s Board of Directors.

The changes in Series 1 Convertible Preferred Stock and Common Stock shares for the quarter ended March 31, 2013 is summarized as follows:

	Series 1 Convertible		Common
	Preferred Stock		Stock
Balance, December 31, 2012		376,387		18,634,369
Preferred Stock Conversions		-		-
Common Stock Issuances		-		-
Balance March 31, 2013		376,387		18,634,369

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

RELATED PARTY TRANSACTION

3 Months Ended

Mar. 31, 2013

RELATED PARTY TRANSACTION

8. RELATED PARTY TRANSACTION:

Promissory notes payable

On June 5, 2012, upon approval of the Board, Anchor entered into two Promissory Notes totaling $400,000, one with Morry Rubin and the other with a major shareholder of the company. Each Promissory Note was for $200,000, had a 90 day term, and earned interest (payable monthly) at 15% per annum. The Promissory Notes were to assist Anchor in providing factoring and purchase order funding facilities to some of its clients. The Promissory Notes were subordinate to and supplemented Anchor's $10 Million Rediscount Credit Facility with a Commercial Bank. Both promissory notes were paid on September 5, 2012. Anchor paid $0 of interest on these notes for quarters ended March 31, 2013 and 2012.

Options granted to officers and directors.

On March 20, 2012, M. Rubin and B. Bernstein were each granted 10 year options to purchase 250,000 shares of common stock each for a total of 500,000 shares, with the options vesting over a period of 10 years. Due to the anti-dilution provisions of our Series 1 Convertible Preferred Stock, this grant caused an adjustment of our preferred stock into common stock. Each share of Series 1 Preferred Stock is now convertible into 5.1 shares of the Company’s Common Stock. The holders of the Series 1 Convertible Preferred Stock have the option to convert the shares to Common Stock at any time. See Note 9.

In June 2012, Paul Healy was granted 10-year non-statutory stock options to purchase 180,000 shares of Anchor’s common stock exercisable at $.25 per share. The options vest one-third immediately and one-third on each of the successive anniversary dates from Mr. Healy joining the board until fully vested.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
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+ Details

EMPLOYMENT AND STOCK OPTION AGREEMENTS

3 Months Ended

Mar. 31, 2013

Employment and Stock Option Agreements [Abstract]

EMPLOYMENT AND STOCK OPTION AGREEMENTS

9. EMPLOYMENT AND STOCK OPTION AGREEMENTS:

On January 31, 2007, the Board adopted our 2007 Omnibus Equity Compensation Plan (the “Plan”), with 2,100,000 common shares authorized for issuance under the Plan. In October 2009 the Company's stockholders approved an increase in the number of shares covered by the Plan to 4,200,000 shares.

The general purpose of the plan is to provide an incentive to the Company’s employees, directors and consultants by enabling them to share in the future growth of the business.

At closing of the exchange transaction described above, M. Rubin and Brad Bernstein (“B. Bernstein”), the President of the Company, entered into employment contracts and stock option agreements. Additionally, at closing two non-employee directors entered into stock option agreements.

The following summarizes M. Rubin’s employment agreement and stock options:

·	The employment agreement with M. Rubin currently retains his services as Co-chairman and Chief Executive Officer through January 31, 2014.

An annual salary of $1 until, the first day of the first month following such time as the Company, shall have, within any period beginning on January 1 and ending not more than 12 months thereafter, earned pre-tax net income exceeding $1,000,000, M. Rubin’s base salary shall be adjusted to an amount, to be mutually agreed upon between M. Rubin and the Company, reflecting the fair value of the services provided, and to be provided, by M. Rubin taking into account (i) his position, responsibilities and performance, (ii) the Company’s industry, size and performance, and (iii) other relevant factors. M. Rubin is eligible to receive annual bonuses as determined by the Company’s compensation committee. M. Rubin shall be entitled to a monthly automobile allowance of $1,500.

·	10-year options to purchase 650,000 shares exercisable at $1.25 per share, pursuant to the Plan. All of the aforementioned options are fully vested.

The following summarizes B. Bernstein’s employment agreement and stock options:

·	The employment agreement with B. Bernstein currently retains his services as President through January 31, 2014.

An annual salary of $240,000. The Board may periodically review B. Bernstein’s base salary and may determine to increase (but not decrease) the base salary in accordance with such policies as the Company may hereafter adopt from time to time. The Board approved an annual bonus program for Mr. Bernstein commencing with the 2012 fiscal year and ending with the 2014 fiscal year. The annual bonus is equal to 5% of annual net income provided net income is equal to or greater than $200,000. The bonus is calculated on the Company’s audited GAAP financial statements. B. Bernstein shall be entitled to a monthly automobile allowance of $1,000.

·	10-year options to purchase 950,000 shares exercisable at $1.25 per share, pursuant to the Plan. All of the aforementioned options are fully vested.

The following table summarizes information about stock options as of March 31, 2013:

Exercise		Number		Remaining	Number
Price		Outstanding		Contractual Life	Exercisable

$	1.25		1,605,000	4 years		1,605,000
$	1.00		45,000	6 years		33,750
$	0.62		500,000	6 years		500,000
$	0.17		500,000	9 years		50,000
$	0.25		180,000	10 years		60,000
			2,830,000			2,248,750

The Company measured the fair value of each option award on the date of grant using the Black Scholes option pricing model with the following assumptions:

Exercise price				$.17 to $1.25
Term				10 years
Volatility				.41 to 2.50
Dividends				0%
Discount rate				0.08% to 4.75%

The fair value amounts recorded for these options in the statement of operations was $2,226 and $1,302 for the quarters ended March 31, 2013 and 2012, respectively.

WARRANTS

3 Months Ended

Mar. 31, 2013

Warrants [Abstract]

WARRANTS

10. WARRANTS:

In March, 2007, the placement agent was issued warrants to purchase 1,342,500 shares of the Company’s common stock. These warrants were due to expire on January 31, 2012, but were extended by the Company through January 31, 2013 at the same exercise price of $1.10 per share and were again extended by the Company through January 31, 2014 on the condition that each warrant holder accept a new exercise price of $1.35 per share. The following information was input into BSM to compute a per warrant price of $.023:

Exercise price	$	1.35
Term	7 years
Volatility		40%
Dividends		0	%
Discount rate		.05	%

For the quarters ended March 31, 2013 and 2012 the Company recorded compensation expense of $1,916 and $3,884 respectively, related to the issuance of these warrants.

On December 7, 2009, the Company received gross proceeds of $500,002 from the sale of 500,002 shares of common stock and ten year warrants to purchase 2,000,004 shares of common stock exercisable at $1.00 per share. The Black Scholes option pricing model was used to compute the fair value of the warrants.

The following table summarizes information about stock warrants as of March 31, 2013:

				Weighted Average
Exercise		Number		Remaining	Number
Price		Outstanding		Contractual Life	Exercisable

$	1.10		1,342,500	10 Months		1,342,500
$	1.00		2,000,004	7 years		2,000,004

CONCENTRATIONS

3 Months Ended

Mar. 31, 2013

Risks and Uncertainties [Abstract]

CONCENTRATIONS

11. CONCENTRATIONS:

Revenues – The Company recorded revenues from United States companies in the following industries as follows:

	For the quarters ended March 31,
Industry	2013			2012
Staffing	$	16,697	$	27,670
Transportation		161,874		156,279
Service		353,862		351,016
Other		70,174		7,081
	$	602,607	$	542,496

Major Customers – For the three months ended March 31, 2013, the Company’s largest customer by revenues was an IT Consulting Company which accounted for approximately 10.0% of its revenues. In May 2013, this customer sold its business and paid all of its obligations to Anchor including a $75,000 early termination fee. For the three months ended March 31, 2012, the Company’s largest customer by revenues was a food service Company which accounted for approximately 10.2% of its revenues.

Client Accounts - As of March 31, 2013, we have three clients that account for an aggregate of approximately 34.6% of our accounts receivable portfolio and approximately 25.6% of our revenues for the three months ended March 31, 2013. The transactions and balances with these clients as of and for the three months ended March 31, 2013 are summarized below:

	Percentage of Accounts Receivable			Percentage of Revenues for
	Portfolio As of			the Three Months Ended
Entity	March 31, 2013			March 31, 2013

Food Service Company in Missouri (1)		15.3	%		8.4	%
Paperboard Company in Michigan		10.2	%		7.2	%
IT Consultant in Maryland		9.1	%		10.0	%
		34.6	%		25.6	%

(1)	Percentage calculation includes $372,149 which is classified as “due from client” for this entity.

If these clients’ balances did not collect, the Company’s total potential loss would be $3,309,762; however, the majority of these balances were subsequently collected and the Company deems them all collectible.

Cash – The Company places its cash and cash equivalents on deposit with financial institutions in the United States. The Federal Deposit Insurance Corporation (FDIC) provides coverage up to $250,000 per depositor at FDIC-insured depository institutions. During the three months ended March 31, 2013, the Company from time to time may have had amounts on deposit in excess of the insured limits.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

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-Name Statement of Position (SOP)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

SUPPLEMENTAL DISCLOSURES OF CASH FLOW	3 Months Ended
SUPPLEMENTAL DISCLOSURES OF CASH FLOW	Mar. 31, 2013
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL DISCLOSURES OF CASH FLOW	12. SUPPLEMENTAL DISCLOSURES OF CASH FLOW: Cash paid for interest to a financial institution was $102,288 and $90,323 for the quarters ended March 31, 2013 and 2012, respectively. Non-cash financing and investing activities consisted of the following: For the three months ending March 31, 2013 None For the three months ending March 31, 2012 None

INCOME TAXES	3 Months Ended
INCOME TAXES	Mar. 31, 2013
Income Tax Disclosure [Abstract]
INCOME TAXES	13. INCOME TAXES: As of December 31, 2012, the Company had approximately $3.6 million of net operating loss carryforwards (“NOL”) for income tax purposes. The NOL’s expire in various years from 2022 through 2025. The Company’s use of operating loss carryforwards is subject to limitations imposed by the Internal Revenue Code. Management believes that the deferred tax assets as of March 31, 2013 do not satisfy the realization criteria and has recorded a valuation allowance for the entire net tax asset. By recording a valuation allowance for the entire amount of future tax benefits, the Company has not recognized a deferred tax benefit for income taxes in its statements of operations.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	14. COMMITMENTS AND CONTINGENCIES: Lease Commitments The Company has lease agreements for office space in Charlotte, NC, Boca Raton, FL and Medley, Florida. All lease agreements are with unrelated parties. The Company has two Charlotte leases for adjoining space that expire May 31, 2013 and the company plans to renew for another year. The monthly rent for the combined space is approximately $2,340. Beginning November 1, 2009, the company entered into a 24 month lease for office space in Boca Raton, FL, and on November 1, 2011 renewed for another two years. The monthly rental is approximately $1,413. Beginning November 12, 2012, the company entered into a six month lease for office space in Medley, FL, with an option to renew for twelve month terms. The monthly rental is $800. The rental expense for the three months ended March 31, 2013 and 2012 was approximately $14,341 and $11,200, respectively. Contingencies We are not a party to any pending material legal proceedings except as described below. To our knowledge, no governmental authority is contemplating commencing a legal proceeding in which we would be named as a party. On October 22, 2010, the Company filed a complaint in the Superior Court of Stamford/Norwalk, Connecticut against the Administrators of the Estate of David Harvey (“Harvey”) to recoup a credit loss incurred by the Company’s former subsidiary, Brookridge Funding Services, LLC. Harvey was the owner of a Company that caused the credit loss and the Company is pursuing its rights under the personal guarantee that Harvey provided. The Complaint is demanding principal of approximately $485,000 plus interest and damages.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation - The accompanying consolidated financial statements include the accounts of Anchor Funding Services, Inc. and, its wholly owned subsidiary, Anchor Funding Services, LLC.

Estimates

Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition – The Company charges fees to its customers in one of two ways as follows:

1)	Fixed Transaction Fee. Fixed transaction fees are a fixed percentage of the purchased invoice and purchase order advance. This percentage does not change from the date the purchased invoice is funded until the date the purchased invoice is collected.

Under the cost recovery method, all revenue is recognized upon collection of the entire amount of purchased accounts receivable.

Retained Interest in Purchased Accounts Receivable

Management considered approximately $80,449 of their March 31, 2013 and December 31, 2012 retained interest in purchased accounts receivable to be uncollectible.

Advertising Costs

Advertising Costs – The Company charges advertising costs to expense as incurred. Total advertising costs were approximately $66,000 and $68,000 for the quarters ended March 31, 2013 and 2012, respectively.

Earnings per Share ("EPS")

Under the treasury stock method, options and warrants will have a dilutive effect when the average price of common stock during the period exceeds the exercise price of options or warrants.

The following tables present a reconciliation of the components used to derive basic and diluted EPS for the periods indicated:
	2013						2012
			(Denominator)						(Denominator)
			Weighted-		Per				Weighted-		Per
	(Numerator)		Average		Share		(Numerator)		Average		Share
	Net Income		Shares		Amount		Net Income		Shares		Amount
Three Months Ended March 31,
Basic EPS	$	52,916		18,634,369	$	-	$	36,769		18,634,369	$	-
Effect of Dilutive Securities – Options and
Convertible Preferred Stock		-		2,057,148		-		-		1,881,763		-
Diluted EPS	$	52,916		20,691,517	$	-	$	36,769		20,516,132	$	-

Stock Based Compensation

See Note 8 for the impact on the operating results for the three months ended March 31, 2013 and 2012.

Fair Value of Financial Instruments

Fair Value of Financial Instruments – The carrying value of cash equivalents, retained interest in purchased accounts receivable, due to financial institution, accounts payable and accrued liabilities approximates their fair value.

Cash and Cash Equivalents

Cash and Cash Equivalents – Cash and cash equivalents consist primarily of highly liquid cash investment funds with original maturities of three months or less when acquired.

Income Taxes

The primary differences between financial statement and taxable income for the Company are as follows:

· Expenses related to the issuance of equity instruments

· Use of the reserve method of accounting for bad debts

· Net operating loss carryforwards.

The Company classifies interest accrued on unrecognized tax benefits with interest expense. Penalties accrued on unrecognized tax benefits are classified with operating expenses.

Recent Accounting Pronouncements

Recent Accounting Pronouncements –

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Schedule of reconciliation of the components used to derive basic and diluted EPS

	2013						2012
			(Denominator)						(Denominator)
			Weighted-		Per				Weighted-		Per
	(Numerator)		Average		Share		(Numerator)		Average		Share
	Net Income		Shares		Amount		Net Income		Shares		Amount
Three Months Ended March 31,
Basic EPS	$	52,916		18,634,369	$	-	$	36,769		18,634,369	$	-
Effect of Dilutive Securities – Options and
Convertible Preferred Stock		-		2,057,148		-		-		1,881,763		-
Diluted EPS	$	52,916		20,691,517	$	-	$	36,769		20,516,132	$	-

RETAINED INTEREST IN PURCHASED ACCOUNTS RECEIVABLE (Tables)

3 Months Ended

Mar. 31, 2013

Loans, Notes, Trade and Other Receivables Disclosure [Abstract]

Schedule of retained interest in purchased accounts receivable

	March 31, 2013			December 31, 2012
Purchased invoices	$	9,076,705		$	8,921,203
Purchase order advances		90,000			21,156
Reserve account		(1,568,322	)		(1,842,447	)
Allowance for uncollectible invoices		(80,449	)		(80,449	)
	$	7,517,934		$	7,019,463

Schedule of retained interest in purchased accounts receivable excluding allowance for uncollectible invoices

	March 31, 2013		December 31, 2012
Staffing	$	280,684	$	185,557
Transportation		1,685,042		1,773,290
Service		4,385,993		4,528,668
Manufacturing		832,183		612,397
Apparel		414,481		-
	$	7,598,383	$	7,099,912

Schedule of adjustments to allowance for uncollectible invoices

	For the quarters ended March 31,
	2013		2012
Balance - beginning of quarter	$	80,449	$	17,500
Provision for credit losses		-		-
Write-offs		-		-
Balance - end of quarter	$	80,449	$	17,500

Schedule of purchased invoices and purchase order advances

	For the quarters ended March 31,
	2013		2012
Purchased invoices	$	23,538,188	$	20,245,117
Purchase order advances		90,000		96,730
	$	23,628,188	$	20,341,847

PROPERTY AND EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	Estimated
	Useful Lives	March 31, 2013			December 31, 2012
Furniture and fixtures	2-5 years	$	46,818		$	46,818
Computers and software	3-7 years		200,928			187,505
			247,746			234,323
Less: accumulated depreciation			(224,229	)		(220,066	)
		$	23,517		$	14,257

CAPITAL STRUCTURE (Tables)

3 Months Ended

Mar. 31, 2013

Stockholders Equity Note [Abstract]

Schedule of conversions of convertible preferred stock and common stock

	Series 1 Convertible		Common
	Preferred Stock		Stock
Balance, December 31, 2012		376,387		18,634,369
Preferred Stock Conversions		-		-
Common Stock Issuances		-		-
Balance March 31, 2013		376,387		18,634,369

EMPLOYMENT AND STOCK OPTION AGREEMENTS (Tables)

3 Months Ended

Mar. 31, 2013

Employment and Stock Option Agreements [Abstract]

Schedule of information about stock options

Exercise		Number		Remaining	Number
Price		Outstanding		Contractual Life	Exercisable

$	1.25		1,605,000	4 years		1,605,000
$	1.00		45,000	6 years		33,750
$	0.62		500,000	6 years		500,000
$	0.17		500,000	9 years		50,000
$	0.25		180,000	10 years		60,000
			2,830,000			2,248,750

Schedule of option input into a Black Scholes option pricing model

Exercise price				$.17 to $1.25
Term				10 years
Volatility				.41 to 2.50
Dividends				0%
Discount rate				0.08% to 4.75%

WARRANTS (Tables)

3 Months Ended

Mar. 31, 2013

Warrants [Abstract]

Schedule of warrants, valuation assumptions

Exercise price	$	1.35
Term	7 years
Volatility		40%
Dividends		0	%
Discount rate		.05	%

Schedule of stock warrants

				Weighted Average
Exercise		Number		Remaining	Number
Price		Outstanding		Contractual Life	Exercisable

$	1.10		1,342,500	10 Months		1,342,500
$	1.00		2,000,004	7 years		2,000,004

CONCENTRATIONS (Tables)

3 Months Ended

Mar. 31, 2013

Risks and Uncertainties [Abstract]

Schedule of revenue from different industries

	For the quarters ended March 31,
Industry	2013			2012
Staffing	$	16,697	$	27,670
Transportation		161,874		156,279
Service		353,862		351,016
Other		70,174		7,081
	$	602,607	$	542,496

Schedule of revenue from different client

	Percentage of Accounts Receivable			Percentage of Revenues for
	Portfolio As of			the Three Months Ended
Entity	March 31, 2013			March 31, 2013

Food Service Company in Missouri (1)		15.3	%		8.4	%
Paperboard Company in Michigan		10.2	%		7.2	%
IT Consultant in Maryland		9.1	%		10.0	%
		34.6	%		25.6	%

(1)	Percentage calculation includes $372,149 which is classified as “due from client” for this entity.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of components used to derive basic and diluted EPS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Accounting Policies [Abstract]
(Numerator) Net Income, Basic EPS	$ 52,916	$ 36,769
(Numerator) Net Income, Effect of Dilutive Securities - Options and Convertible Preferred Stock
(Numerator) Net Income, Diluted EPS	$ 52,916	$ 36,769
(Denominator) Weighted- Average Shares, Basic EPS	18,634,369	18,634,369
(Denominator) Weighted- Average Shares, Effect of Dilutive Securities - Options and Convertible Preferred Stock	2,057,148	1,881,763
(Denominator) Weighted- Average Shares, Diluted EPS	20,691,517	20,516,132
Per Share Amount, Basic EPS
Per Share Amount, Effect of Dilutive Securities - Options and Convertible Preferred Stock
Per Share Amount, Diluted EPS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012	Dec. 31, 2011
Accounting Policies [Abstract]
Maximum percentage of advances on purchase order	100.00%
Uncollectible retained interest in purchased accounts receivable	$ 80,449	$ 17,500	$ 80,449	$ 17,500
Accounts receivable purchased over 90 days old	307,300
Total advertising costs	$ 66,000	$ 68,000

RETAINED INTEREST IN PURCHASED ACCOUNTS RECEIVABLE - Retained interest in purchased accounts receivable (Details) - USD ($)	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Loans, Notes, Trade and Other Receivables Disclosure [Abstract]
Purchased invoices	$ 9,076,705	$ 8,921,203
Purchase order advances	90,000	21,156
Reserve account	(1,568,322)	(1,842,447)
Allowance for uncollectible invoices	(80,449)	(80,449)	$ (17,500)	$ (17,500)
Retained interest in purchased accounts receivable, net	$ 7,517,934	$ 7,019,463

RETAINED INTEREST IN PURCHASED ACCOUNTS RECEIVABLE - Retained interest in purchased accounts receivable excluding allowance for uncollectible invoices (Details 1) - USD ($)	Mar. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Retained interest in purchased accounts receivable	$ 7,598,383	$ 7,099,912
Staffing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Retained interest in purchased accounts receivable	280,684	185,557
Transportation
Accounts, Notes, Loans and Financing Receivable [Line Items]
Retained interest in purchased accounts receivable	1,685,042	1,773,290
Service
Accounts, Notes, Loans and Financing Receivable [Line Items]
Retained interest in purchased accounts receivable	4,385,993	4,528,668
Manufacturing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Retained interest in purchased accounts receivable	832,183	612,397
Apparel
Accounts, Notes, Loans and Financing Receivable [Line Items]
Retained interest in purchased accounts receivable	$ 414,481

RETAINED INTEREST IN PURCHASED ACCOUNTS RECEIVABLE - Summary of Adjustments to allowance for uncollectible invoices (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Loans, Notes, Trade and Other Receivables Disclosure [Abstract]
Balance - beginning of quarter	$ 80,449	$ 17,500
Provision for credit losses
Write-offs
Balance - end of quarter	$ 80,449	$ 17,500

RETAINED INTEREST IN PURCHASED ACCOUNTS RECEIVABLE - Summary of purchased invoices and purchase order advances (Details 3) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Loans, Notes, Trade and Other Receivables Disclosure [Abstract]
Purchased invoices	$ 23,538,188	$ 20,245,117
Purchase order advances	90,000	96,730
Purchased invoices and purchase order advances, Total	$ 23,628,188	$ 20,341,847

DUE FROM CLIENT (Detail Textuals)	Mar. 31, 2013 USD ($)
Due From Client [Abstract]
Due from client	$ 372,149

PROPERTY AND EQUIPMENT - Summary of property and equipment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 247,746	$ 234,323
Less: accumulated depreciation	(224,229)	(220,066)
Property and equipment, net	23,517	14,257
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 46,818	46,818
Furniture and Fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Furniture and Fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Computers and Software
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 200,928	$ 187,505
Computers and Software \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Computers and Software \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($)	3 Months Ended
PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($)	Mar. 31, 2013	Mar. 31, 2012
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 4,163	$ 5,041

DUE TO FINANCIAL INSTITUTION (Detail Textuals) - USD ($)	1 Months Ended
	Nov. 30, 2011	Mar. 31, 2013	Dec. 31, 2012
Line of Credit Facility [Line Items]
Due to financial institution		$ 5,966,448	$ 4,977,763
Commercial Bank \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowed credit facility	$ 10,000,000
Percentage of advance under borrowed facility	80.00%
Description of variable rate basis	90 Day Libor Rate plus 6.25%
Spread on variable rate	6.25%
Ratio of debt to tangible net worth	not more than four to one (4:1)
Notice period to bank	60 days

CAPITAL STRUCTURE - Summary of changes in series 1 convertible preferred stock and common stock shares (Details) - shares	1 Months Ended	3 Months Ended
	Jan. 31, 2007	Mar. 31, 2013
Series 1 Convertible Preferred Stock
Balance, beginning (in shares)		376,387
Preferred stock conversions (in shares)	2,000,000
Common stock issuances (in shares)
Balance, ending (in shares)		376,387
Common Stock
Balance, beginning (in shares)		18,634,369
Preferred stock conversions (in shares)
Common stock issuances (in shares)
Balance, ending (in shares)		18,634,369

CAPITAL STRUCTURE (Detail Textuals) - $ / shares	1 Months Ended		3 Months Ended
CAPITAL STRUCTURE (Detail Textuals) - $ / shares	Mar. 20, 2012	Jan. 31, 2007	Mar. 31, 2013
Preferred stock, par value (in dollars per share)			$ 0.001
Preferred stock, shares authorized (in shares)			10,000,000
Preferred stock conversion ratio	5.1 shares
Common stock, shares authorized (in shares)			65,000,000
Common stock, par value (in dollars per share)			$ 0.0001
Series 1 Convertible Preferred Stock
Preferred stock conversion into Series 1 Convertible Preferred Stock (in shares)		2,000,000
Preferred stock conversion ratio			5.1 shares
Dividend rate on Series 1 Convertible Preferred Stock			8.00%

RELATED PARTY TRANSACTION (Detail Textuals)		3 Months Ended
RELATED PARTY TRANSACTION (Detail Textuals)	Jun. 05, 2012 USD ($)	Mar. 31, 2013 USD ($) Promissory_Note	Mar. 31, 2012 USD ($)
Related Party Transaction [Line Items]
Number of promissory notes \| Promissory_Note		2
Line Of Credit Promissory Note
Related Party Transaction [Line Items]
Interest paid		$ 0	$ 0
Morry Rubin \| Line Of Credit Promissory Note
Related Party Transaction [Line Items]
Promissory notes, face amount	$ 200,000
Major Shareholder \| Line Of Credit Promissory Note
Related Party Transaction [Line Items]
Promissory notes, face amount	200,000
Morry Rubin and Major Shareholders \| Line Of Credit Promissory Note
Related Party Transaction [Line Items]
Promissory notes, face amount	$ 400,000
Term of promissory note	90 days
Interest rate of promissory note	15.00%
Rediscount credit facility with a commercial bank	$ 10,000,000

RELATED PARTY TRANSACTION (Detail Textuals 1) - $ / shares	1 Months Ended
	Jun. 30, 2012	Mar. 20, 2012
Related Party Transaction [Line Items]
Preferred stock conversion ratio		5.1 shares
Morry Rubin \| Stock Options
Related Party Transaction [Line Items]
Term of options		10 years
Number of option granted		250,000
Vesting period of option		10 years
B Bernstein \| Stock Options
Related Party Transaction [Line Items]
Term of options		10 years
Number of option granted		250,000
Vesting period of option		10 years
Officers and Directors \| Stock Options
Related Party Transaction [Line Items]
Term of options		10 years
Number of option granted		500,000
Paul Healy \| Stock Options
Related Party Transaction [Line Items]
Term of options	10 years
Number of option granted	180,000
Shares exercisable (in dollars per share)	$ 0.25

EMPLOYMENT AND STOCK OPTION AGREEMENTS - Summary of stock option (Details)	3 Months Ended
	Mar. 31, 2013 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding	2,830,000
Number Exercisable	2,248,750
Stock Options \| Exercise Price $ 1.25
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share) \| $ / shares	$ 1.25
Number Outstanding	1,605,000
Remaining Contractual Life	4 years
Number Exercisable	1,605,000
Stock Options \| Exercise Price $ 1.00
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share) \| $ / shares	$ 1.00
Number Outstanding	45,000
Remaining Contractual Life	6 years
Number Exercisable	33,750
Stock Options \| Exercise Price $ 0.62
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share) \| $ / shares	$ 0.62
Number Outstanding	500,000
Remaining Contractual Life	6 years
Number Exercisable	500,000
Stock Options \| Exercise Price $ 0.17
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share) \| $ / shares	$ 0.17
Number Outstanding	500,000
Remaining Contractual Life	9 years
Number Exercisable	50,000
Stock Options \| Exercise Price $ 0.25
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share) \| $ / shares	$ 0.25
Number Outstanding	180,000
Remaining Contractual Life	10 years
Number Exercisable	60,000

EMPLOYMENT AND STOCK OPTION AGREEMENTS - Summary of fair value option award on date of grant (Details 1) - Stock Options	3 Months Ended
	Mar. 31, 2013 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term	10 years
Dividends	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)	$ 0.17
Volatility	0.41%
Discount rate	0.08%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)	$ 1.25
Volatility	2.50%
Discount rate	4.75%

EMPLOYMENT AND STOCK OPTION AGREEMENTS (Detail Textuals) - shares	Oct. 31, 2009	Jan. 31, 2007
2007 Omnibus Equity Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares authorized for issuance (in shares)	4,200,000	2,100,000

EMPLOYMENT AND STOCK OPTION AGREEMENTS (Detail Textuals 1) - 2007 Omnibus Equity Compensation Plan - M Rubins Employment Agreement - Stock Options	3 Months Ended
	Mar. 31, 2013 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Officers' annual salary	$ 1
Net income before tax threshold limit for salary revision	1,000,000
Monthly automobile allowance	$ 1,500
Term of options	10 years
Option to purchase common stock \| shares	650,000
Shares exercisable (in dollars per share) \| $ / shares	$ 1.25

EMPLOYMENT AND STOCK OPTION AGREEMENTS (Detail Textuals 2) - 2007 Omnibus Equity Compensation Plan - B Bernstein Employment Agreement - Stock Options	3 Months Ended
	Mar. 31, 2013 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Officers' annual salary	$ 240,000
Bonus equivalent to annual net income percentage	5.00%
Net income before tax threshold limit for salary revision	$ 200,000
Monthly automobile allowance	$ 1,000
Term of options	10 years
Option to purchase common stock \| shares	950,000
Shares exercisable (in dollars per share) \| $ / shares	$ 1.25
Option award method used	Black Scholes option pricing model

EMPLOYMENT AND STOCK OPTION AGREEMENTS (Detail Textuals 3) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Employment and Stock Option Agreements [Abstract]
Fair value amounts recorded for option	$ 2,226	$ 1,302

WARRANTS - Summary of warrants (Details) - Warrant	3 Months Ended
WARRANTS - Summary of warrants (Details) - Warrant	Mar. 31, 2013 $ / shares
Derivative [Line Items]
Exercise price (in dollars per share)	$ 1.35
Term	7 years
Volatility	40.00%
Dividends	0.00%
Discount rate	0.05%

WARRANTS - Summary of information about stock warrants (Details 1)	3 Months Ended
	Mar. 31, 2013 $ / warrant shares	Dec. 07, 2009 $ / warrant
Derivative [Line Items]
Exercise price (in dollars per share) \| $ / warrant		1.00
Warrant
Derivative [Line Items]
Exercise price (in dollars per share) \| $ / warrant	0.023
Warrant \| Exercise Price $ 1.10
Derivative [Line Items]
Exercise price (in dollars per share) \| $ / warrant	1.10
Number Outstanding \| shares	1,342,500
Weighted Average Remaining Contractual Life	10 months
Number Exercisable \| shares	1,342,500
Warrant \| Exercise Price $ 1.00
Derivative [Line Items]
Exercise price (in dollars per share) \| $ / warrant	1.00
Number Outstanding \| shares	2,000,004
Weighted Average Remaining Contractual Life	7 years
Number Exercisable \| shares	2,000,004

WARRANTS (Detail Textuals)	3 Months Ended
WARRANTS (Detail Textuals)	Mar. 31, 2013 USD ($) $ / warrant	Mar. 31, 2012 USD ($)	Dec. 07, 2009 $ / warrant shares	Mar. 31, 2007 $ / warrant shares
Derivative [Line Items]
Number of common stock shares to purchase warrant \| shares			2,000,004
Exercise price (in dollars per share)			1.00
Warrant
Derivative [Line Items]
Number of common stock shares to purchase warrant \| shares				1,342,500
Exercise price (in dollars per share)	0.023
Compensation expenses for issuance of warrants \| $	$ 1,916	$ 3,884
Warrant \| Warrants Extended By 31 January 2013
Derivative [Line Items]
Exercise price (in dollars per share)				1.10
Warrant \| Warrants Extended By 31 January 2014
Derivative [Line Items]
Exercise price (in dollars per share)				1.35

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

WARRANTS (Detail Textuals 1)	Dec. 07, 2009 USD ($) $ / warrant shares
Warrants [Abstract]
Proceeds from sale of common stock shares \| $	$ 500,002
Number of common stock shares sold	500,002
Term of warrant	10 years
Number of warrants purchased	2,000,004
Exercise price (in dollars per share) \| $ / warrant	1.00

CONCENTRATIONS -Summary of revenue from different industries (Details) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Revenue By Different Industries [Line Items]
Revenues by industries	$ 602,607	$ 542,496
Staffing
Revenue By Different Industries [Line Items]
Revenues by industries	16,697	27,670
Transportation
Revenue By Different Industries [Line Items]
Revenues by industries	161,874	156,279
Service
Revenue By Different Industries [Line Items]
Revenues by industries	353,862	351,016
Other
Revenue By Different Industries [Line Items]
Revenues by industries	$ 70,174	$ 7,081

CONCENTRATIONS- Summary of client accounts (Details 1) - Customer Concentration Risk

3 Months Ended

Mar. 31, 2013

Mar. 31, 2012

Accounts Receivable

Concentration Risk [Line Items]

Percentage of revenue from major customer

34.60%

Accounts Receivable | Food Service Company | Missouri

Concentration Risk [Line Items]

Percentage of revenue from major customer

^[1]

15.30%

Accounts Receivable | Paperboard Company | Michigan

Concentration Risk [Line Items]

Percentage of revenue from major customer

10.20%

Accounts Receivable | IT Consultant | Maryland

Concentration Risk [Line Items]

Percentage of revenue from major customer

9.10%

Revenue

Concentration Risk [Line Items]

Percentage of revenue from major customer

25.60%

Revenue | Food Service Company | Missouri

Concentration Risk [Line Items]

Percentage of revenue from major customer

8.40%

^[1]

10.20%

Revenue | Paperboard Company | Michigan

Concentration Risk [Line Items]

Percentage of revenue from major customer

7.20%

Revenue | IT Consultant | Maryland

Concentration Risk [Line Items]

Percentage of revenue from major customer

10.00%

[1]	Percentage calculation includes $372,149 which is classified as "due from client" for this entity.

CONCENTRATIONS (Detail Textuals) - USD ($)

3 Months Ended

Mar. 31, 2013

Mar. 31, 2012

Concentration Risk [Line Items]

Early termination fees

$ 75,000

Customer Concentration Risk | Revenue

Concentration Risk [Line Items]

Percentage of revenue from major customer

25.60%

Customer Concentration Risk | Revenue | IT Consultant | Maryland

Concentration Risk [Line Items]

Percentage of revenue from major customer

10.00%

Customer Concentration Risk | Revenue | Food Service Company | Missouri

Concentration Risk [Line Items]

Percentage of revenue from major customer

8.40%

^[1]

10.20%

[1]	Percentage calculation includes $372,149 which is classified as "due from client" for this entity.

CONCENTRATIONS (Detail Textuals 1) - Customer Concentration Risk	3 Months Ended
	Mar. 31, 2013 Client
Concentration Risk [Line Items]
Number of clients	3
Accounts Receivable
Concentration Risk [Line Items]
Percentage of revenue from major customer	34.60%
Revenue
Concentration Risk [Line Items]
Percentage of revenue from major customer	25.60%

CONCENTRATIONS (Detail Textuals 2)	3 Months Ended
CONCENTRATIONS (Detail Textuals 2)	Mar. 31, 2013 USD ($)
Risks and Uncertainties [Abstract]
Due from client	$ 372,149
Potential loss from client	3,309,762
Depository account maximum amount covered by FDIC	$ 250,000

SUPPLEMENTAL DISCLOSURES OF CASH FLOW (Detail Textuals) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Supplemental Cash Flow Elements [Abstract]
Cash paid for interest to a financial institution	$ 102,288	$ 90,323

INCOME TAXES (Detail Textuals) $ in Millions	Dec. 31, 2012 USD ($)
Income Tax Disclosure [Abstract]
Operating loss carryforwards	$ 3.6

COMMITMENTS AND CONTINGENCIES (Detail Textuals)	1 Months Ended			3 Months Ended		5 Months Ended
COMMITMENTS AND CONTINGENCIES (Detail Textuals)	Nov. 30, 2011 USD ($)	Oct. 22, 2010 USD ($)	Nov. 30, 2009	Mar. 31, 2013 USD ($) Lease	Mar. 31, 2012 USD ($)	Mar. 31, 2013 USD ($)
Property Subject to or Available for Operating Lease [Line Items]
Rental expense				$ 14,341	$ 11,200
Principal amount, sought value		$ 485,000
Charlotte
Property Subject to or Available for Operating Lease [Line Items]
Number of leases \| Lease				2
Monthly rent				$ 2,340
Boca Raton
Property Subject to or Available for Operating Lease [Line Items]
Monthly rent	$ 1,413
Term of lease			24 months
Additional lease renewal term	2 years
Medley
Property Subject to or Available for Operating Lease [Line Items]
Monthly rent						$ 800
Term of lease						6 months
Additional lease renewal term						12 months