Financing is a primary concern for businesses throughout the United States. While stimulus and relief packages have come and gone in the ongoing COVID-19 pandemic, businesses are looking for something more permanent, but with more flexibility than traditional loans. Fortunately, there is a financing solution that is a perfect fit for a wide range of businesses.
Business Financing and Loans
Loans were once the “go-to” financing plan for businesses in all industries. Over the years – and especially now – that attitude has changed. Paycheck Protection Program (PPP) loans were suspended last August, and many businesses that received them may not be able to take advantage of the loan forgiveness part of PPP loans. So with PPP loans up in the air, some businesses are looking to secure other traditional loans, only to be met with more obstacles. PPP loans were a mad rush because it wasn’t the banks’ money on the lines, it was part of a relief package from the government. Banks are tightening their loan requirements, making it more difficult for businesses to qualify for the financing they need.
The Burden of Loans
In our current economic climate, loans may not be the best course of action to finance your business. Debt and lowered credit ratings negatively impact your business, especially in a time of economic uncertainty. Loan payments, plus interest, take a large portion of revenue away from businesses and can create a strain on cash flow. At the same time, interest rates on traditional loans are subject to hikes that come down from the Federal Reserve. Usually, these increases in interest rates are done to offset inflation, but they make loans more of a gamble than anything else.
Reliable Business Financing
To get their businesses financed, entrepreneurs are finding solutions without taking on debt and high interest rates. Accounts receivable factoring is a great fit for business financing because there is no debt involved, no ongoing payments, and businesses are able to preserve their credit ratings. At its heart, accounts receivable factoring is a form of asset-based financing in which unpaid invoices are converted to cash. By using factoring services, businesses can build up internal capital reserves to maintain and grow operations without relying on debt-based financing, such as loans. New Century Financial offers accounts receivable factoring to businesses nationwide. We are able to convert invoices to cash within 24 hours. Our factoring services have no hidden fees, and we offer the flexibility that businesses demand in today’s economy. Contact New Century Financial today and start financing your business from within.