Monthly Archives: June 2019

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Your Business Has Excellent Sales! So Where Is the Revenue?

Your business has excellent sales and a growing customer base, but when you look at the books, you see more money going to cover expenses and payroll than you see coming in. The realization that cash flow is reversed can be very stressful. This situation is more common than you think, and there is a simple solution to rightsize your cash flow for good.

Why Is Revenue So Low If Sales Are High?

High sales figures are great for businesses of any size. At the same time, invoices are issued with payment periods of 30, 60, or 90 days. The disparity between the sale and time it takes to receive payments from clients results in a reverse cash flow. More money is going out than coming in. While the payment periods on invoices are a standard business procedure, small businesses end up getting hit the hardest, even if they are making lots of sales. When revenue is tied up in unpaid receivables, short-term capital issues can turn into major headaches.

Improving the Parity between Sales and Revenue

To maintain a positive cash flow and achieve better parity between sales and revenue, businesses use accounts receivable factoring. Factoring services have a fast turnaround on invoices, so instead of waiting 30, 60, or even 90 days to access cash, businesses can see capital from invoices in as little as 24 hours. Factoring eliminates the lag that causes cash flow issues. Because factoring does not place any debt on the books, businesses can preserve their credit ratings and position themselves for growth quickly, instead of taking out a series of short-term loans to rightsize problems with cash flow.

Supercharge Your Cash Flow

New Century Financial provides the most comprehensive accounts receivable factoring services so you do not have to wait on customer payments or deal with cash flow issues. Our factoring services allow you to choose which invoices, or parts of invoices, are factored and you will get access to cash within 24 hours. Our team will work with you to create a factoring strategy to help correct cash flow issues and help you reach your goals without relying on debt-based loans. Contact New Century Financial today to get started.

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Reducing Debt for New and Small Businesses

One of the biggest hurdles for new and small businesses to overcome is debt. Launching, maintaining, and growing a business requires capital, and the typical “go to” solution is to take out loans. However, relying on loans leaves new and small businesses struggling with debt which keeps them from growing successfully.

How the Debt Cycle Hinders Small Businesses

New and small businesses use loans for a variety of purposes, such as for working capital, equipment, supplies, and materials. Loans place debt on the books and impact credit ratings, which keep businesses from getting larger funding amounts to grow. Businesses then need to put aside a good portion of their revenue to repay the debt, so they can start the borrowing cycle all over again. If unexpected circumstances arise, such as sudden expenses or uneven revenue cycles that do not cover overhead expenses and payroll, businesses may take out short-term loans to correct these issues. The debt, low credit ratings, and the strain placed on cash flow from loan payments prevent new and small businesses from thriving and growing.

Reducing Debt and Boosting Cash Flow

New and small businesses can follow a two-step process to reduce and eliminate debt, while improving cash flow at the same time. The first step is to employ debt consolidation. Juggling multiple loans at varying interest rates costs money, time, and resources. By consolidating debt into one loan with manageable monthly payments, businesses can start to build their credit ratings and streamline accounting. The second step is to boost cash flow with invoice factoring. Instead of waiting a month or longer for clients to pay on outstanding receivables, factoring converts invoices to cash within 24 hours. This gives businesses faster access to revenue and ensures overhead costs are covered. Because factoring does not place any debt on the books, businesses can preserve their credit ratings and accumulate the capital necessary for rapid growth.

Put Your Business on the Fast Track to Success

New Century Financial is a national leader in invoice factoring services. We help new and small businesses supercharge their cash flow with fast turnaround on receivables. We also put more control in your hands by letting you choose which invoices and parts of invoices are factored, so you can grow your business quickly and maintain a competitive edge.