Monthly Archives: January 2020

business-financing

The Market Outlook for Business Financing in 2020

Business financing has seen a number of trends over the past year, including a decrease in interest rate hikes on business loans and an uncertain situation with imported goods and materials used by almost every industry. However, there were a number of positives as well, which makes forecasting the outlook on business financing a mixed bag, depending on where you stand.

First, the Good News

Business financing has been bolstered by two major points. First, consumer confidence is still high, as shown by increased overall purchases in 2019, exceeding 2018’s fourth-quarter results. Additionally, almost every industry experienced growth, with increased production from manufacturers, more clients entering contracts with businesses for physical goods and services, and higher job availability. More businesses are trying to position themselves for growth and more entrepreneurs plan on launching businesses this year.

Uncertainty for the Business Financing Outlook

The current status with tariffs has caused some uncertainty in the retail and freight sectors. While 2018 saw freight demand reach new heights, last year things snapped back to normal, creating the perception of a drop, which caused lenders to tighten credit requirements for certain businesses. 2019 saw fewer hikes in interest rates on business loans, but the unpredictability has business owners wary about taking on new debt. Also, as we start 2020, it is an election year, which causes general speculation and uncertainty for all businesses.

The Safest Plan Moving Forward

Regardless of the positive points and the uncertainty, businesses still need access to capital to thrive and grow. While lenders are tightening credit requirements, taking on debt with business loans may not be the answer. While the market waits for speculation to give way to a clearer picture, businesses can build up capital reserves so they can expand or roll our new projects. One way to do that is through factoring. Factoring allows businesses to speed up cash flow and avoid experiencing gaps in revenue from unpaid client invoices. Factoring is fast and can be tailored to the cash flow needs of businesses so they can be in a strong financial position no matter what happens.

At New Century Financial, we offer comprehensive factoring services without any red tape, hidden fees, or long-term contracts. Factoring helps businesses reduce the need for debt-based loans by providing fast turnaround on invoices. Get an edge on business financing this year with factoring services from New Century Financial. Contact our offices today to get started.

business-capital

Building Capital Quickly and Effectively without Debt

A lot of small business owners feel like they are in a holding pattern. Building capital can seem like a challenge between expenses, payroll, and the built-in lag between client payments due to staggered invoice schedules. Fortunately, there is a fast and effective way to build capital without resorting to short-term loans or other debt-based financing programs.

Ongoing Financial Obligations

Every business has financial obligations, such as making payroll, paying utilities, installments on existing loans, and similar recurring expenses. Some expenses fluctuate, especially for businesses that rely on inventory and production, or simply client demands. Revenue from sales should exceed ongoing financial obligations, but if revenue is staggered due to the payment schedules on invoices, the amount of outgoing capital could exceed revenue during crucial cycles. Sometimes businesses feel the need to take out loans to temporarily get ahead of those financial obligations. In reality, those payment schedules can cause recurring gaps in revenue, which leads to more loans. Taking out loans places more debt on the books, which increases the amount of capital going out from your business to pay down financial obligations. This cycle can keep businesses from truly getting ahead and building up capital.

Building Capital Effectively

Wouldn’t it be nice to eliminate the gaps caused by invoice schedules and pivot away from debt-based programs to get ahead? Factoring allows business to build capital effectively without debt. Factoring converts unpaid invoices into cash within 24 hours, which eliminates gaps in revenue cycles. The fast turnaround from factoring accelerated cash flow so businesses can meet ongoing financial obligations. Even better, the faster and healthier cash flow means building capital reserves is much easier, because the rate of revenue can finally exceed capital going to cover expenses. Build capital gives your business the ability to grow and take on larger client accounts, which translates to even more revenue at a faster rate. Factoring gives businesses the ability to break out of the holding pattern.

New Century Financial is a national leader in factoring services. Our factoring solutions have no hidden fees, a 24-hour turnaround time, no contracts, and the flexibility for you to customize how and when you factor invoices. Contact New Century Financial today and start building capital for long-term success.

business-growth

Make 2020 the Year to Grow Your Business

Happy New Year! With 2019 behind us, many businesses are looking to make progress towards growth. However, to grow your business, there are a few things you need to do to ensure smooth sailing.

Start with the Simple Stuff

If you want to grow your business, you need to make sure there is nothing holding you back. That means making sure your quarterly IRS tax liabilities are in order. As it is January, businesses will be filing for the quarter of October to December of 2019. Next, it is time to take a look at your business credit report. See where your business stands and if there are any red flags that would stand out to lenders. To grow your business, you want to be in the best position possible, which means paying down outstanding balances and making sure there are no lingering marks on your credit report. Ideally, you should be checking your business credit report quarterly, at minimum. Removing those red flags will be reflected the following month. With taxes and credit history out of the way, the next move is to get a better handle on revenue.

Grow Your Business with Better Cash Flow

Many businesses are kicking off the new year by waiting on payments from invoices issued in the previous quarter. If you want to grow your business, you need access to as much working capital as possible without taking on additional debt. Unfortunately, waiting on payments from sales made a month ago or longer can pose a challenge. To accelerate the rate of capital coming in, businesses turn to accounts receivable factoring. By using accounts receivable factoring, unpaid invoices are turned into cash within a single day. This allows your business to catch up on revenue and improve cash flow. Additionally, with a greater influx of capital, you can build up reserves so you can act on opportunities to grow your business instead of putting off plans because of unpaid client invoices.

Take the Next Big Leap

By taking care of liabilities and credit, along with improving cash flow through accounts receivable factoring, you can create a sound strategy to grow your business. At New Century Financial, we provide the most comprehensive factoring services to help businesses improve cash flow and achieve rapid growth. Make this year even more successful, and grow your business with fast, flexible, and efficient factoring from New Century Financial.

ar-financing

The Difference between AR Financing and AR Factoring

While the rate at which everyone does business has increased tremendously from even a few years ago, one thing remains constant – invoices are issues with payment schedules of 30 days or longer. This forces businesses to wait up to a month or more for revenue to trickle in. When businesses want to boost cash flow and access revenue faster, they can choose between AR financing and AR factoring. While both methods may seem similar, they function in very different ways.

AR Financing at a Glance

Accounts receivable financing – or AR financing – is a form of asset-based lending. Receivables are used as collateral to create a line of credit that businesses can borrow against. Often, true AR financing involved term contracts, and the amount of financing available can go up or down depending on the number of receivables in a given review period. Some AR financing providers also impose upkeep fees on these asset-based lines of credit. Other forms of AR financing offer loans against the receivables, which could impact credit ratings.

AR Factoring at a Glance

AR factoring is a different approach to leveraging receivables for capital. AR factoring is a fast and transparent procedure that delivers money for receivables, often within a single business day. AR factoring is structured around the actual receivables and the “creditworthiness” of the clients who were issued the invoices. AR factoring provides capital for receivables, so there is no line of credit. Additionally, true AR factoring services do not charge maintenance fees or lock clients into long-term contracts. AR factoring is also versatile, allowing businesses to choose which invoices or parts of invoices get factored.

Pay Attention to the Details

AR financing and AR factoring are often conflated, so it helps to pay attention to which services you are actually getting from your provider. Do not hesitate to ask questions to make sure you are not getting into a contract when you only need funding for your receivables right then and there. Also, check to see if there are maintenance fees and other charges.

At New Century Financial, we provide true AR factoring services, so businesses can access capital for their unpaid invoices within 24 hours. There are no contracts or extra fees, and businesses are able to choose which receivables or parts of receivables get factored. When you want fast cash for your receivables without any strings attached, contact the experts at New Century Financial.