Posted by NCF On February 05,2019
For new and small businesses, covering overhead costs while trying to grow operations can be a challenge. Payroll, utilities, advertising, fuel for vehicle, materials and supplies – all of these things can place a strain on finances, especially when business owners are trying to court larger client accounts and act on growth opportunities.
Posted by NCF On December 27,2018
Cash flow issues are not that uncommon. Businesses of all sizes often find that expenses exceed the amount of revenue coming in, which can lead to business owners depleting cash reserves or taking on debt to make payroll and cover internal expenses. To sidestep the restrictions of debt-based loans and correct cash flow issues, businesses turn to invoice factoring.
Using loans to correct cash flow issues – it’s a trap!For a long time, loans were the only answer to correcting cash flow issues. However, using loans for rightsized finances can be a trap with diminishing returns on one end and exacerbated problems on the other. Taking out a small short-term loan to fix cash flow issues can seem harmless. Sure, it slightly impacts credit ratings and puts a small amount of debt on the books, but the loan will work out in the end because cash flow will be corrected. But what is the same issue occurs a second time? Or a third? Or a fifth? Suddenly, those loans stack up and lende
Posted by NCF On December 20,2018
Almost every business uses suppliers of some sort. Even if you are ordering toner for your printer and paper clips, odds are you are using a supplier. To get the best deals, a business must build strong relationships with suppliers, and that means shopping around.
Not All Suppliers Are the SameIf two suppliers offer the same products, you need to make a closer comparison. Are their prices the same? Do they offer financing options on larger orders? Do they offer lines of credit to their clients? How knowledgeable are their employees and do they understand your needs? A little research can go a long way so don’t be afraid to ask questions.
Lines of Credit from SuppliersNot all financing plans and lines of credit offered by suppliers work the same way. Some suppliers keep their accounts in-house. That is, they do not report information to a credit agency. It is of the utmost importance that your suppliers submit credit reports to an agency, because it can have an
Posted by NCF On December 13,2018
When your business uses factoring services, the advantages go well beyond fast access to capital. Factoring services can help make your business m ore financially secure, allow for rapid growth, and much more. The experts at New Century Financial have put together a list of the biggest advantages of using factoring services to give better insight into how businesses benefit in both the short and long term.
Improved Cash FlowIt’s no big secret that if you have revenue tied up in unpaid customer invoices, cash flow can seem pretty tight. Even if sales are high, waiting 30 days or longer for customers to settle accounts can threaten to flip finances upside down. Factoring converts outstanding receivables to cash in as little as 24 hours, which supercharges your cash flow.
Reducing the Need for LoansBusiness owners want to avoid debt and preserve credit ratings whenever possible. By converting receivables to cash through Read More
Posted by NCF On December 06,2018
Business owners and decision makers understand how to make the most of every dollar to run and grow operations. However, as a business grows, the demands placed on human resources and other facets increase dramatically. To ensure that money isn’t wasted and to get the biggest return to keep things running smoothly, businesses use PEO companies. What is a PEO company? A professional employment organization (PEO) handles many HR functions, such as payroll and benefits. This method of contingent staffing puts HR, payroll, benefits, and compliance responsibilities in the hands of a dedicated team, so owners and managers can focus on running their business. Additionally, PEOs can save businesses lots of money compared to those that try to handle everything in-house. Help with payroll By working with a PEO, businesses can reduce payroll processing costs along with the accompanying accounting. PEOs can handle withholdings, garnishments, W-2, and even 941 payments. In addition to