Posted by NCF On October 26,2018
The technology industry covers a wide range of businesses, from hardware companies to software development, independent consultants, and everything in between. Yet whether your business sells large hardware configurations, consulting services on long-term projects, or subscription-based services, working capital keeps the lights on, allows people to find solutions, and meet time-sensitive deadlines.
Posted by NCF On October 18,2018
While business forecasts and projections can point to ballpark goals, revenue cycles themselves become rather uneven when analyzed on a more granular level. Sale figures fluctuate. For businesses that issue invoices with payment schedules of 30 days or longer, smoothing out uneven revenue cycles can go a long way towards growth and overall success.
What Causes Uneven Revenue Cycles?There is no one main reason that causes revenue cycles to rise and fall. The overall strength of the economy certainly plays a big part. In some cases, customers purchase conservatively in one period and then buy aggressively in the next. For service-based companies, customers may allow contracts to lapse or fail to renew service subscriptions. In all of the above scenarios, having revenue tied up in receivables can place a strain on finances. While big businesses might feel a slight impact from cash flow turbulence, new and smaller businesses are affected more severely. Uneven revenue cycles can
Posted by NCF On October 11,2018
The transportation industry serves every single business in the United States. From the food we buy at the grocery store to consumer electronics, raw construction materials, and everything in between, our economy thrives due to efficient supply chains and logistics. Yet even in the current economic climate, the transportation industry is facing growth challenges to meet rising demands from every industry.
Favorable Economic ConditionsThe reports about our strong economy have not been exaggerated. Manufacturers are producing more goods. Consumers have extra capital and are purchasing more. The demand for capacity trucks has increased, giving transportation companies the leverage they need when entering into contracts. Even load matching apps are being used by larger clients, providing even more revenue options for independent owner-operators. Everything is lining up to favor the transportation industry, so why is it so challenging to meet the increased demand for goods to be
Posted by NCF On October 04,2018
There is a lot of misinformation out there regarding accounts receivable factoring. For new business owners, these myths can be very misleading, and can often engineer decision makers to get locked into debt-based agreements. New Century Financial would like to take some time to dispel some of the myths surrounding accounts receivable factoring to provide business owners with a clearer picture of how the process works and what to expect.
Myth 1: Accounts receivable factoring is only for struggling companiesThis is one of the biggest factoring myths we see on a daily basis. Accounts receivable factoring is designed so businesses can access revenue faster and build up capital reserves. Factoring corrects cash flow issues for some businesses and prevents them from occurring for others.
Myth 2: Factoring is risky, or else banks would offer itAccounts receivable factoring is one of the most stable forms of financing in existence because it is structured around tangib
Posted by ncfwebadmin On September 27,2018
Managing receivables is vital to the success of any business. When there is a constant stream of revenue, businesses can make payroll, meet overhead expenses, and even make plans to expand their operations. Mounting unpaid receivables can cause cash flow to flip upside down, and suddenly those liabilities on the balance sheet threaten to overshadow your revenue. Fortunately, there are a few ways to handle receivables to ensure constant revenue.