New Century Financial

Access to working capital is essential to the success of oil and natural gas distributors. However, many oil and gas distributors have a good portion of their capital tied up in unpaid receivables. Fortunately, there is a way to catch up on unsettled customer accounts, improve cash flow, and build up capital to grow into new markets.

The Relationship between Overhead Costs and Receivables

Oil and Gas distributors have a number of overhead costs to keep balanced. Employees, facilities, storage, equipment, transportation, marketing, the product itself, and more all need to be paid for to keep operations moving. In order to cover those costs, oil and gas distributors rely on regular payments from their customers. Since the standard business practice is to issue invoices with staggered payment schedules of 30 days or more, oil and gas distributors can find themselves wai

  Of the most popular alternatives to traditional loans, accounts receivable factoring and merchant cash advances top the list. In order to give business owners a better idea of how the two stack up, we put together a side-by-side comparison according to the features entrepreneurs look for the most in financing solutions.

1. Debt-Free Financing

Merchant Cash Advance: An advance in funding with no debt on the balance sheet. Accounts Receivable Factoring: Cash for receivables with no debt on the books

Advantage: Equal

2. Interest and Fees

Merchant Cash Advance: High interest and additional fees baked into the agreement. Accounts Receivable Financing: No interest or additional fees. The amount of finan

Traditional loans are not the be all end all of business financing. With funding limits, debt, and arbitrary interest rate hikes, many businesses are seeking out alternative solutions to the traditional loan model. When it comes to growth capital, merchant cash advances seem like an attractive alternative to bank loans, but there are a few things you should know before you apply for that MCA.

How MCAs Impact Businesses

Merchant cash advances, or MCAs, are offered as an alternative to traditional loans. Businesses use MCAs to roll out growth projects quickly without being limited by the red tape of traditional lending methods. MCAs do not place debt on the books and do not require any collateral. As such, MCAs have much higher interest rates and additional fees to ensure the lender makes a profit from a business that is equal to or more than the cost of a traditional loan. MCAs are also advertised as having flexible payment methods. Since there are no fixed p

Many businesses use merchant cash loans or merchant cash advances as a means of sidestepping the debt and fixed payments of traditional loans. However, the devil is in the details, and a merchant cash loan can easily place a major strain on cash flow and can potentially threaten to turn business finances upside down.

How Merchant Cash Loans Really Work

Merchant cash loans are frequently advertised as an infusion of capital without debt and lots of flexibility. The balance is repaid from a percentage of sales instead of fixed payments, giving businesses more financial leeway. The reality of merchant cash loans is that, while they may not place any debt on the balance sheet, merchant cash loans have other strings attached. Because they are sold as “a debt-free cash infusion” on the front end, merchant loans come with very high interest rates as well as hidden fees. While the repayment method seems flexible, the interest and fees result in an extremely larg

Staffing agencies operate in a very fast-paced industry. They source individuals to fill roles at all types of companies, ranging from general labor to highly technical fields. In order to sustain operations and grow successfully, staffing agencies need to not only cover their own expenses, but also pay those individuals working in various roles for their clients. With clients paying invoices at varying rates, there are times when cash flow can become turbulent and place a strain on finances that makes it hard to keep things running smoothly.

Striking a Balance Between Services and Revenue

Many staffing agencies have agreements with their clients to provide qualified employees for weeks, months, years, or even for a custom duration to complete a specific project. The sourced employees are paid by the staffing agency on a weekly or bi-weekly basis. On the other side, cli