These days it seems like alternative financing methods are popping up all over the place. While many are making wild claims, we are going to take a look at how they stack up against accounts receivable factoring.
Tried and True vs. Fly by Night
Factoring has been around since there have been invoices, and it has been around longer than modern banking. Alternative financing seems to come and go in waves, popping up when the economic outlook is uncertain, and then disappearing quickly when things have stabilized.
Debt vs. No Debt
Alternative financing, such as merchant cash advances, are often advertised as being “debt free.” However, if you look a little closer, you will find that there is a balance that needs to be repaid, and there is often a large balloon payment at the end of the agreement. Accounts receivable factoring, on the other hand, is a simple transaction that does not place debt on the books, and there is no outstanding balance.
Fees
Because alternative financing is not provided by banks, business borrowers assume most of the risk in the form of higher interest rates and fees. In short, alternative financing can wind up being a very expensive choice. Accounts receivable factoring from New Century Financial is completely transparent with no hidden fees or restrictive long-term contracts.
Reusability
Alternative financing is mostly a single-use option. Once the funds have been spent, the application process needs to start from scratch, and usually at higher interest rates. Accounts receivable factoring can be used so long as a business issues invoices. Whether a business needs factoring to correct cash flow issues, or as an ongoing service to ensure healthy capital reserves, there are no limits on the number of invoices that can be submitted.
Experience the Difference Today
At New Century Financial, we offer comprehensive accounts receivable factoring services to businesses nationwide. We offer transparent factoring with no hidden fees, no long-term contracts, and no upper limits. Forget fly-by-night alternative financing and partner with the team that has been recognized for providing excellent service to all of our clients. Contact New Century Financial today.