New Century Financial

If you are launching a new business or changing your structure, you are probably wondering if an LLC or an S-Corporation offers more benefits to you as a business owner. Let’s take a look at the similarities and differences LLCs and S-Corporations offer, to put things in better perspective.

LLC and S-Corp Similarities

LLCs and corporations have a number of similarities. Both offer debt and liability protection to business owners. The LLC or the S-Corp are considered legal entities which are separate from the business owner. Both an LLC and an S-Corp are considered pass-through tax entities. That is, no income taxes are paid at a business level, so any profits or losses are passed to the business owner’s tax returns. All taxes are paid at a personal level, though an LLC has the ability to opt out of pass-through status. LLCs and S-Corporations must follow the tax laws and registration requirements in the state

Of all the certificates and awards that businesses can seek and show off to the world at large, a Certificate of Good standing is the one that is commonly overlooked. If a business is in good standing, that certificate proves that the organization is in compliance with taxes and state laws. However, a Certificate of Good Standing has offers many other benefits to businesses of all sizes and in all industries.

How Does a Business Get a Certificate of Good Standing?

A Certificate of Good Standing may also be called a Certificate of Status, a Certificate of Existence, or simply Tax Compliance. These certificates are issued in the state where your business exists. In many cases, businesses can obtain a Certificate of Good Standing by filling out a form and paying a small fee. While the guidelines may vary from state to state, the information businesses need to submit includes:

• Read More

The rate at which the world does business is much faster than it was only a few years ago. However, we still operate on receivables with staggered payment schedules of 30, 60, and even 90 days. While the standard practice of staggered payment schedules is not going to disappear anytime soon, there is a way to speed up cash flow and get faster access to revenue.

Cash Flow Issues

One of the biggest hang-ups with the traditional model is that businesses regularly experience cash flow issues. When invoices are on staggered payment schedules, businesses have more money going out from their accounts than coming in, at any given point. An unbalances cash flow can lead to uneven revenue cycles, trouble making payroll, the inability to purchase supplies and materials, and much more. Waiting while revenue is tied up in unpaid receivables can create a negative cash flow for businesses, which can lead to even worse problems.

There are a number of small business financing options available today. Among the most popular are loans, merchant cash advances, and factoring. Smart entrepreneurs will do research to see the pros and cons of each in order to make a careful cost analysis for both short and long-term payoffs. At New Century Financial, we took a look at loans and merchant cash advances to see how they stack up with our factoring services.

Business Loans

Business loans provide capital, typically for a specific use. In exchange for capital, loans require businesses to put up collateral, take on debt, and take a hit to their credit ratings. Loans are single-use funding products, so when the capital is used up, businesses are left with a balance that must be repaid according to a schedule outlined in the agreement, and if further funding is needed, a new loan must be taken out. Interest rates on loans are also subject to rate hikes by

Your business has excellent sales and a growing customer base, but when you look at the books, you see more money going to cover expenses and payroll than you see coming in. The realization that cash flow is reversed can be very stressful. This situation is more common than you think, and there is a simple solution to rightsize your cash flow for good.

Why Is Revenue So Low If Sales Are High?

High sales figures are great for businesses of any size. At the same time, invoices are issued with payment periods of 30, 60, or 90 days. The disparity between the sale and time it takes to receive payments from clients results in a reverse cash flow. More money is going out than coming in. While the payment periods on invoices are a standard business procedure, small businesses end up getting hit the hardest, even if they are making lots of sales. When revenue is tied up in unpaid receivables, short-term capital issues can