Monthly Archives: November 2019

receivables

Rethinking Standard Business Procedures for Receivables

For the longest time, businesses of all types have been issuing invoices with staggered payment schedules. This courtesy gives clients a period of 30, 60, or even 90 days to pay for goods and services received from businesses so as not to place a strain on finances, especially for large orders. However, the business landscape has changed over the decades, and commerce takes place at a much faster rate than ever before. Apart from banking, weekends mean less and less in the business world, and our constant connection via the internet and mobile devices have us closing deals and making sales with the swipe of a finger. So why should your business still have to wait a month or longer to receive payments on aging receivables?

Unpaid Receivables Place a Strain on Businesses

While the standard business procedure of issuing invoices with staggered payment schedules works out great for customers, it can create a major strain for businesses. Waiting a month or longer for payments causes gaps in cash flow. During that time, businesses have to make payroll, cover regular overhead expenses, pay for materials and inventory to fill customer orders, maintain marketing campaigns, and more. This means that at any given time, businesses are spending more money than they are receiving, and it makes it nearly impossible to achieve successful growth.

Rethinking Receivables

Businesses need access to working capital to cover all the expenses listed above, and to take advantage of growth opportunities. For these reasons and more, businesses are taking advantage of the benefit of accounts receivable factoring. While factoring is not a new concept, it is the one form of financing that has kept pace with the business world so companies can get money quickly and efficiently. By factoring receivables, businesses can get their unpaid invoices converted to cash which is made available within 24 hours. There are no contracts or hidden fees, and businesses can choose which receivables or parts of receivables get factored. Factoring provides a fast turnaround and the flexibility that today’s business owners demand.

New Century Financial provides the most comprehensive accounts receivable factoring services and solutions. Contact our offices today and stop letting standard procedures slow down your cash flow.

The Fastest Business Financing Approvals

No one likes to wait for anything, especially in the realm of business. Customers want their goods and services delivered promptly. Businesses expect to receive payments from their clients. Yet when it comes to business financing approvals, the wait can seem like an eternity.

Traditional Financing Approvals

Traditional business financing approvals can be an ordeal from start to finish. First, there are a number of requirements from lenders, which can include a business plan, a preferred credit score, a minimum amount of collateral, and more. Then the loan application goes up the chain of command, bouncing from department to department while an in-depth credit history check is performed. Finally, if all the boxes are checked, the financing still needs an approval from the lender’s loan board, after which there is an additional processing period before funds are made available. From start to finish, the loan process can take weeks, during which time businesses can miss out on opportunities or come under financial duress because of the financing they need.

Cash Advance Approvals

Cash advances do not take as long as traditional loans. Funds can be made available over the course of one or two business weeks. While the requirements are lower for cash advances than traditional loans, the amount of financing and how quickly it’s processed depends on financial records. Cash advances are structured around your company’s sales history, so uneven cycles or long periods of low sales can raise questions. To lower the risk placed on the lender, a cash advance comes with high interest rates and fees which businesses must pay for the term of the agreement.

Invoice Factoring Approvals

Invoice factoring has the fastest business financing approvals across the board. Financing is structured around unpaid receivables which are converted to cash, and funds are made available within 24 hours. Applying for invoice factoring takes only a few minutes and there are no hidden fees or interest payments. Factoring is simple and transparent with no red tape and no strings attached.

New Century Financial provides the best invoice factoring solutions so businesses can get the fastest approvals and quick access to the capital they need for everything from smoothing over uneven revenue cycles to taking advantage of time-sensitive opportunities, building up reserves for growth, and much more. Contact our offices today to get started.

Need Fast Cash for Your Business? Not All Financing Is the Same

Our economic landscape is moving at a faster pace than ever before, which means businesses need access to capital to keep operations moving and to achieve successful growth. Yet in the realm of business financing, not all programs that offer fast cash are created equal.

Short-Term Business Loans

When businesses need working capital to smooth out finances or to take advantage of time-sensitive business opportunities, many opt for short-term business loans. After all, loans are easy to understand and have been around for centuries. However, the process for traditional loans is changing. Lenders are raising their requirements, so businesses may not receive the funding they need, even if they meet the credit and collateral qualifications. Similarly, small businesses may not have the established credit history or collateral to qualify, so short-term loan requirements end up pushing entrepreneurs to the sidelines. Because lenders have so many checks and balances in the approval process, funds may not be made available for weeks. And to top it all off, a short-term loan places debt on the books, and making those regularly scheduled payments can place a severe strain on cash flow and finances further down the line.

MCA

A merchant cash advance, or MCA, is often advertised as a way for businesses to get fast cash without debt. Digging a little deeper, while it’s true that MCAs do not place debt on the books or impact credit ratings, they still create a liability. Businesses can only access merchant cash advances if they accept credit card payments from customers at a point of sale. A small percentage of that sale is applied electronically to the balance owed. Because no collateral is required, interest rates are typically higher than with traditional loans, and there are extra fees attached for processing payments. At the end of the agreement, if the balance is not repaid in full, businesses must pay off the remainder in one lump sum. While MCAs may seem like a way to get fast cash, there are a lot of strings attached.

Invoice Factoring

Businesses across all industries use invoice factoring to get fast cash without debt, long processing times, or high requirements. There are no hidden fees, no contracts, and no liabilities. Invoice factoring is a simple process where businesses submit unpaid invoices so they can be turned into fast cash within 24 hours. This improves cash flow instead of waiting 30, 60, or 90 days to receive payment from clients. By using invoice factoring, businesses can boost cash flow and achieve rapid growth. The approval process is simple, and invoice factoring is an ideal fit in our fast-paced economy.

New Century Financial is a leader in factoring services. Contact our offices today to learn why businesses prefer our factoring services when they need fast cash.

MCA vs. Factoring: Comparing Working Capital Solutions

Business owners are always seeking reliable sources of working capital and new ways to improve cash flow. Accounts receivable factoring and merchant cash advance (MCA) programs provide working capital, but how they provide capital and how it impacts your business are completely different. We’re going to take a look at how both funding methods work from the perspective of a business owner to show the benefits and disadvantages.

Access to Capital

Access to capital is essential to every business. No one wants to wait weeks or months to get the funding they need. A merchant cash advance can take upwards of 10 business days for approval and funding. Accounts receivable factoring provides cash within 24 hours on submitted invoices.

Repayments

Most financing solutions create a balance that your business must repay within a certain timeframe. MCAs do not have fixed payments, and are instead repaid from a small percentage of sales. If there is a remaining balance, your business will owe a balloon payment to cover the principal, interest, and any remaining fees. Accounts receivable factoring does not have any payment schedules. A small amount is deducted from the total amount of the invoices submitted.

Fees and Transparency

The world of business financing is shifting and entrepreneurs are demanding more transparency. A merchant cash advance has fees tacked onto the initial funding, which means it can be very challenging to pay off the balance within the agreed upon terms. Accounts receivable factoring from New Century Financial is completely transparent. There are no hidden fees or contracts. Businesses can select which invoices or parts of invoices get factored.

Working Capital

Both MCAs and factoring services provide working capital. A merchant cash advance is an infusion of capital that creates a liability which must be repaid. Accounts receivable factoring leverages unpaid invoices and converts them to working capital immediately. There is no balance, no liabilities, and businesses can use the supercharged cash flow to position themselves for growth, as well as handle overhead expenses.

Get Started Today

At New Century Financial, we provide the most efficient, transparent, and flexible accounts receivable factoring services. If you want to improve the cash flow of your business and get access to funds quickly, contact the team at New Century Financial and learn why businesses prefer factoring services over MCAs.