12Mar

Debt-Free Growth Capital? A Better Alternative to MCAs

Posted by NCF On March 12,2019
Traditional loans are not the be all end all of business financing. With funding limits, debt, and arbitrary interest rate hikes, many businesses are seeking out alternative solutions to the traditional loan model. When it comes to growth capital, merchant cash advances seem like an attractive alternative to bank loans, but there are a few things you should know before you apply for that MCA.

How MCAs Impact Businesses

Merchant cash advances, or MCAs, are offered as an alternative to traditional loans. Businesses use MCAs to roll out growth projects quickly without being limited by the red tape of traditional lending methods. MCAs do not place debt on the books and do not require any collateral. As such, MCAs have much higher interest rates and additional fees to ensure the lender makes a profit from a business that is equal to or more than the cost of a traditional loan. MCAs are also advertised as having flexible payment methods. Since there are no fixed p
cash-advance-new-century-financial
05Mar

Merchant Cash Loans: Short-Term Solutions with Long-Term Headaches

Posted by NCF On March 05,2019
Many businesses use merchant cash loans or merchant cash advances as a means of sidestepping the debt and fixed payments of traditional loans. However, the devil is in the details, and a merchant cash loan can easily place a major strain on cash flow and can potentially threaten to turn business finances upside down.

How Merchant Cash Loans Really Work

Merchant cash loans are frequently advertised as an infusion of capital without debt and lots of flexibility. The balance is repaid from a percentage of sales instead of fixed payments, giving businesses more financial leeway. The reality of merchant cash loans is that, while they may not place any debt on the balance sheet, merchant cash loans have other strings attached. Because they are sold as “a debt-free cash infusion” on the front end, merchant loans come with very high interest rates as well as hidden fees. While the repayment method seems flexible, the interest and fees result in an extremely larg
employees-teamwork-staffing-new-century-financial
26Feb

Helping Staffing Agencies Take on New Clients

Posted by NCF On February 26,2019
Staffing agencies operate in a very fast-paced industry. They source individuals to fill roles at all types of companies, ranging from general labor to highly technical fields. In order to sustain operations and grow successfully, staffing agencies need to not only cover their own expenses, but also pay those individuals working in various roles for their clients. With clients paying invoices at varying rates, there are times when cash flow can become turbulent and place a strain on finances that makes it hard to keep things running smoothly.

Striking a Balance Between Services and Revenue

Many staffing agencies have agreements with their clients to provide qualified employees for weeks, months, years, or even for a custom duration to complete a specific project. The sourced employees are paid by the staffing agency on a weekly or bi-weekly basis. On the other side, cli
financial-growth-new-century-financial
19Feb

Rethinking the Traditional Growth Financing Model

Posted by NCF On February 19,2019
When businesses position themselves for growth, the thought of taking out one or more loan is not far behind. For the longest time, debt-based loans have been the answer for everything from overcoming cash flow issues to expanding into new markets. However, business owners spanning all industries are rethinking the traditional growth financing model.

The Limitations of Debt-Based Financing

Growth-focused businesses want to reach their fullest potential. Loans may seem like the conventional method to attain growth capital, but they can also be very limiting. Taking on debt to achieve growth usually means businesses have to walk back a few goals in order to pay off the balance of their loans without creating a severe financial strain. Debt and impacted credit ratings add to the risk of business growth when the end result does not guarantee a proportional increase in sales to offset financial liabilities. In the end, the accumulated debt can keep businesses fro
manufacturing-new-century-financial
12Feb

How Manufacturers Balance Cash Flow and Materials

Posted by NCF On February 12,2019
Manufacturers of all types are facing increased demands from their clients. Whether it is ductwork for HVAC installations, specialized electronics, widgets, or finished products for general consumer use, production expenses are on the rise. Manufacturers need a robust cash flow to purchase raw materials, acquire or maintain equipment, and hire employees to ensure operations run smoothly. When clients are settling accounts at intervals of 30 days or longer, this can disrupt the normal workflow for manufacturers. Fortunately, there is a simple solution.

Filling Customer Orders

Many manufacturers receive orders at a faster rate than they are paid by their customers. On the surface, this is not bad. Making a lot of sales or taking on long-term clients is very good, and can potentially position a manufacturing company for growth very quickly. The issue arises with the rate at which revenue comes into the company. The standard business practice is to issue invoice
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