New Century Financial

Our economic landscape is moving at a faster pace than ever before, which means businesses need access to capital to keep operations moving and to achieve successful growth. Yet in the realm of business financing, not all programs that offer fast cash are created equal.

Short-Term Business Loans

When businesses need working capital to smooth out finances or to take advantage of time-sensitive business opportunities, many opt for short-term business loans. After all, loans are easy to understand and have been around for centuries. However, the process for traditional loans is changing. Lenders are raising their requirements, so businesses may not receive the funding they need, even if they meet the credit and collateral qualifications. Similarly, small businesses may not have the established credit history or collateral to qualify, so short-term loan requirements end up pushing entrepreneurs to the sidelines. Beca

Business owners are always seeking reliable sources of working capital and new ways to improve cash flow. Accounts receivable factoring and merchant cash advance (MCA) programs provide working capital, but how they provide capital and how it impacts your business are completely different. We’re going to take a look at how both funding methods work from the perspective of a business owner to show the benefits and disadvantages.

Access to Capital

Access to capital is essential to every business. No one wants to wait weeks or months to get the funding they need. A merchant cash advance can take upwards of 10 business days for approval and funding. Accounts receivable factoring provides cash within 24 hours on submitted invoices.

Repayments

Most financing solutions create a balance that your business must repay within a certain timeframe. MCAs do not hav

No one likes to owe anyone anything. Business owners sometimes owe debt to banks, which can eat into revenue and impact credit ratings, but that can easily be solved with factoring services. However, when a business has a liability owed to the IRS, the repercussions can be more severe, which is why it is important to get out in front of IRS liabilities.

IRS Liabilities

At the core, a business gains IRS liabilities when taxes aren’t paid. These taxes could range from filing yearly taxes for the business owner or company to the quarterly 941 taxes which take into account unemployment taxes and more. The first step is to send a notification to the business of liabilities. The second step is to move the liabilities to IRS collections, which can result in tax liens against the business, garnishment of revenue, extra fees, and more.

The First Step Is Recognizing that Liabilities Exist Read More