12Nov

4 Big Advantages of Accounts Receivable Factoring

Posted by NCF On November 12,2020

Accounts receivable factoring is often seen as an alternative to traditional loans. However, for businesses that may be unfamiliar with how factoring works, that first statement can be a bit nebulous. Accounts receivable Factoring offers a number of advantages to business owners, from improving cash flow to enabling growth, and more.

1. Factoring is not a loan

While accounts receivable factoring is frequently placed under the heading of “lending solutions,” it is not a loan. Accounts receivable factoring does not require collateral, does not impact business credit ratings, and does not place any debt on the balance sheet. Factoring is a simple exchange of receivables for immediate working capital.

2. Accounts receivable factoring improves cash flow

The success of every business relies on having a strong cash flow. When revenue is tied up in unpaid receiva

15Oct

Getting a Head Start on Business Recovery

Posted by NCF On October 15,2020

As cities across the United States begin to come out from a state of quarantine, businesses are reopening. Due to businesses restricting or halting commerce during the COVID-19 pandemic, catching up on revenue is a top priority. However, business recovery will be challenging without a way to ensure strong cash flow and fast access to capital.

Lenders Are Tightening Requirements

As the economy contracted during the pandemic, lenders started tightening their requirements for loans. The minimums for both collateral and credit ratings increased, while the amount offered for loans decreased. This trend is expected to continue through the business recovery period, as lenders attempt to minimize their own risk and place most of the burden on the borrowers. At the same time, businesses need access to working capital to get back up and running, but taking on extra debt to accomplish is not a desired course of action.

16Sep

Taking Your Business Online? Supercharge Your Cash Flow!

Posted by NCF On September 16,2020

Businesses continue to evolve, most often spurred on by external influences. The COVID-19 pandemic forced many businesses to rethink operations, and many entrepreneurs took their companies online to reduce potential health risks to their employees and their customers. By moving operations online, businesses found they could reach a wider audience. Businesses that once relied on local clients were suddenly tapping into demand, statewide, nationally, and even globally. They also discovered the sales side of e-commerce moves at a much faster pace than traditional sales. However, faster sales do not always translate to improved cash flow. Fortunately, there is a way to bring parity to online businesses.

Old-Fashioned Methods and the Digital Age

Technology may have advanced tremendously over the past few years, but standard business practices have remained the same. Employees still get paid on a regular schedule, bank

08Sep

Debtor-in-Possession Financing: Reliable Capital for Struggling Businesses

Posted by NCF On September 08,2020
Debtor-in-Possession financing (or DIP financing) is an often overlooked solution for businesses that are facing bankruptcy or restructuring. DIP financing is an essential way to keep distressed businesses cash-fluid while they are going through the Chapter 11 process. How DIP Financing Works At its heart, DIP financing is extended credit designed to meet the working capital needs of businesses that are seeking bankruptcy protection. DIP financing provides businesses with immediate cash to sustain operations and maintain liquidity throughout their reorganization during bankruptcy. Why Access to DIP Financing is Important Debtor-in-Possession financing is nothing new, but the need for DIP financing has come to the forefront. The COVID-19 pandemic led to many businesses downsizing, and some had to put operations on hold for months. As the pandemic stretched into the second, third, and likely fourth-quarter of 2020, some businesses could not sustain themselves, e
12Aug

How to Avoid Predatory Business Lending in the Pandemic

Posted by NCF On August 12,2020

COVID-19 is an ongoing challenge facing businesses, but entrepreneurs are finding ways to adapt. Some brick-and-mortar businesses are reducing foot traffic, or moving operations completely to online platforms. Others are taking extra precautions to keep customers and employees safe. Throughout all of this, businesses still need financing, but some predatory lending practices have come to the forefront. How can businesses avoid predatory lenders during a pandemic and get the financing they need?

1. Compare lenders before applying for financing

Many lenders seem to offer similar financing programs, but there are often details that get overlooked. Interest rates, origination fees, loan amounts, and more can mean the difference between legitimate and predatory lending practices. Read reviews from other borrowers and talk to the lenders directly. Since you are looking for financing for your business, you are in contro

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