New Century Financial

Businesses throughout the United States have been impacted by COVID-19. From service companies to staffing agencies, manufacturers to logistics companies, all sectors have been affected. In order to weather the current condition, it is of the utmost importance that businesses maintain a strong cash flow.

How COVID-19 Impacts Cash Flow

As cities place restrictions on which businesses can remain open, limiting hours of operation, and more, business owners need a way to access revenue quickly. There is no doubt that some invoices will age out to collections. Restricting operations will restrict cash flow, but there is no reason why businesses should have to wait 30 days or longer to get paid for sales made prior to the outbreak. After all, businesses still need to pay bills, make payroll, and formulate a strategy to make it through this bout of COVID-19 so they can resume operations once this is all over. Businesses

Service companies play a very necessary but unique role in our economy. Service companies can be found in every industry, but they do not provide tangible goods, like traditional product-based businesses. The services these companies provide are invaluable, but finding adequate financing to maintain and grow their operations can be challenging.

Financing Challenges

Securing traditional loans can be difficult for any small business. Lenders set requirements for credit ratings and collateral to qualify for loans, but since service companies do not have physical goods, real estate, or other large assets, they might not meet the requirements for most loan programs. Even non-traditional lending, such as a merchant advance, requires a point-of-sale system to repay the balance. Alternative lending places the majority of the risk on the applicant, so there are usually additional fees and high interest rates, as well. Sin

March 23, 2020

To our Valued Clients,

As a follow-up to our first update from last week, sent on March 13, 2020, we want to let you know that New Century Financial has been conducting business with 100% of our staff working remote for a complete week and in prior rotations since February 28, 2020. We have serviced 100% of our clients while conducting business as usual during this COVID-19 changed environment.

In our line of business, completing a funding transaction for you is our utmost priority since we understand cash flow time sensitivity. Our team will continue to provide ongoing updates to you as more information is provided by the CDC and other credible sources. Please consult with your Account Manager if you have any specific questions on our preparation for business co

Businesses of all sizes have expenses. Payroll, supplies, equipment, bills, and more can really eat into a budget before any revenue gets to the bank account. For smaller businesses trying to manage finances, there are ways to run and grow operations without decimating your budget or taking on a ton of debt.

1. Purchasing equipment isn’t necessary

While every business uses equipment, the large cash outlay to purchase machinery, vehicles, and tools can deplete capital reserves or force business owners to take out loans. If you run a small business, or simply want to reduce expenses, try leasing equipment instead. Leasing agreements are flexible and the payments are manageable, so businesses can get the exact equipment they need. Leasing companies also handle maintenance and repairs, which also eliminates extra expenses for your small business.

2. Use Contractors or Staffing Agencies Read More