How Factoring Compares to Loans and Merchant Cash Advances

Posted by NCF On July 03,2019

There are a number of small business financing options available today. Among the most popular are loans, merchant cash advances, and factoring. Smart entrepreneurs will do research to see the pros and cons of each in order to make a careful cost analysis for both short and long-term payoffs. At New Century Financial, we took a look at loans and merchant cash advances to see how they stack up with our factoring services.

Business Loans

Business loans provide capital, typically for a specific use. In exchange for capital, loans require businesses to put up collateral, take on debt, and take a hit to their credit ratings. Loans are single-use funding products, so when the capital is used up, businesses are left with a balance that must be repaid according to a schedule outlined in the agreement, and if further funding is needed, a new loan must be taken out. Interest rates on loans are also subject to rate hikes by


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

Posted by NCF On June 26,2019

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


Reducing Debt for New and Small Businesses

Posted by NCF On June 19,2019

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


Oil and Gas Distributors: Handling Unsettled Customer Accounts

Posted by NCF On March 26,2019
Access to working capital is essential to the success of oil and natural gas distributors. However, many oil and gas distributors have a good portion of their capital tied up in unpaid receivables. Fortunately, there is a way to catch up on unsettled customer accounts, improve cash flow, and build up capital to grow into new markets.

The Relationship between Overhead Costs and Receivables

Oil and Gas distributors have a number of overhead costs to keep balanced. Employees, facilities, storage, equipment, transportation, marketing, the product itself, and more all need to be paid for to keep operations moving. In order to cover those costs, oil and gas distributors rely on regular payments from their customers. Since the standard business practice is to issue invoices with staggered payment schedules of 30 days or more, oil and gas distributors can find themselves wai

Accounts Receivable Factoring Vs. Merchant Cash Advances: How Things Stack Up

Posted by NCF On March 19,2019
  Of the most popular alternatives to traditional loans, accounts receivable factoring and merchant cash advances top the list. In order to give business owners a better idea of how the two stack up, we put together a side-by-side comparison according to the features entrepreneurs look for the most in financing solutions.
  1. Debt-Free Financing

Merchant Cash Advance: An advance in funding with no debt on the balance sheet. Accounts Receivable Factoring: Cash for receivables with no debt on the books

Advantage: Equal

  1. Interest and Fees

Merchant Cash Advance: High interest and additional fees baked into the agreement. Accounts Receivable Financing: No interest or additional fees. The amount of finan

New Century Financial

New Century Financial


Factoring Is Simple and Easy

  • No monthly minimums
  • Credit lines up to $5,000,000
  • Quick online application
  • First funding as fast as 24 hours

To Apply for a proposal within 24-hours, please click here or download the PDF Application.


Factoring Is Simple and Easy

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