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 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