Category Archives: Blog

The Market Outlook for Business Financing in 2020

Business financing has seen a number of trends over the past year, including a decrease in interest rate hikes on business loans and an uncertain situation with imported goods and materials used by almost every industry. However, there were a number of positives as well, which makes forecasting the outlook on business financing a mixed bag, depending on where you stand.

First, the Good News

Business financing has been bolstered by two major points. First, consumer confidence is still high, as shown by increased overall purchases in 2019, exceeding 2018’s fourth-quarter results. Additionally, almost every industry experienced growth, with increased production from manufacturers, more clients entering contracts with businesses for physical goods and services, and higher job availability. More businesses are trying to position themselves for growth and more entrepreneurs plan on launching businesses this year.

Uncertainty for the Business Financing Outlook

The current status with tariffs has caused some uncertainty in the retail and freight sectors. While 2018 saw freight demand reach new heights, last year things snapped back to normal, creating the perception of a drop, which caused lenders to tighten credit requirements for certain businesses. 2019 saw fewer hikes in interest rates on business loans, but the unpredictability has business owners wary about taking on new debt. Also, as we start 2020, it is an election year, which causes general speculation and uncertainty for all businesses.

The Safest Plan Moving Forward

Regardless of the positive points and the uncertainty, businesses still need access to capital to thrive and grow. While lenders are tightening credit requirements, taking on debt with business loans may not be the answer. While the market waits for speculation to give way to a clearer picture, businesses can build up capital reserves so they can expand or roll our new projects. One way to do that is through factoring. Factoring allows businesses to speed up cash flow and avoid experiencing gaps in revenue from unpaid client invoices. Factoring is fast and can be tailored to the cash flow needs of businesses so they can be in a strong financial position no matter what happens.

At New Century Financial, we offer comprehensive factoring services without any red tape, hidden fees, or long-term contracts. Factoring helps businesses reduce the need for debt-based loans by providing fast turnaround on invoices. Get an edge on business financing this year with factoring services from New Century Financial. Contact our offices today to get started.

Building Capital Quickly and Effectively without Debt

A lot of small business owners feel like they are in a holding pattern. Building capital can seem like a challenge between expenses, payroll, and the built-in lag between client payments due to staggered invoice schedules. Fortunately, there is a fast and effective way to build capital without resorting to short-term loans or other debt-based financing programs.

Ongoing Financial Obligations

Every business has financial obligations, such as making payroll, paying utilities, installments on existing loans, and similar recurring expenses. Some expenses fluctuate, especially for businesses that rely on inventory and production, or simply client demands. Revenue from sales should exceed ongoing financial obligations, but if revenue is staggered due to the payment schedules on invoices, the amount of outgoing capital could exceed revenue during crucial cycles. Sometimes businesses feel the need to take out loans to temporarily get ahead of those financial obligations. In reality, those payment schedules can cause recurring gaps in revenue, which leads to more loans. Taking out loans places more debt on the books, which increases the amount of capital going out from your business to pay down financial obligations. This cycle can keep businesses from truly getting ahead and building up capital.

Building Capital Effectively

Wouldn’t it be nice to eliminate the gaps caused by invoice schedules and pivot away from debt-based programs to get ahead? Factoring allows business to build capital effectively without debt. Factoring converts unpaid invoices into cash within 24 hours, which eliminates gaps in revenue cycles. The fast turnaround from factoring accelerated cash flow so businesses can meet ongoing financial obligations. Even better, the faster and healthier cash flow means building capital reserves is much easier, because the rate of revenue can finally exceed capital going to cover expenses. Build capital gives your business the ability to grow and take on larger client accounts, which translates to even more revenue at a faster rate. Factoring gives businesses the ability to break out of the holding pattern.

New Century Financial is a national leader in factoring services. Our factoring solutions have no hidden fees, a 24-hour turnaround time, no contracts, and the flexibility for you to customize how and when you factor invoices. Contact New Century Financial today and start building capital for long-term success.

Make 2020 the Year to Grow Your Business

Happy New Year! With 2019 behind us, many businesses are looking to make progress towards growth. However, to grow your business, there are a few things you need to do to ensure smooth sailing.

Start with the Simple Stuff

If you want to grow your business, you need to make sure there is nothing holding you back. That means making sure your quarterly IRS tax liabilities are in order. As it is January, businesses will be filing for the quarter of October to December of 2019. Next, it is time to take a look at your business credit report. See where your business stands and if there are any red flags that would stand out to lenders. To grow your business, you want to be in the best position possible, which means paying down outstanding balances and making sure there are no lingering marks on your credit report. Ideally, you should be checking your business credit report quarterly, at minimum. Removing those red flags will be reflected the following month. With taxes and credit history out of the way, the next move is to get a better handle on revenue.

Grow Your Business with Better Cash Flow

Many businesses are kicking off the new year by waiting on payments from invoices issued in the previous quarter. If you want to grow your business, you need access to as much working capital as possible without taking on additional debt. Unfortunately, waiting on payments from sales made a month ago or longer can pose a challenge. To accelerate the rate of capital coming in, businesses turn to accounts receivable factoring. By using accounts receivable factoring, unpaid invoices are turned into cash within a single day. This allows your business to catch up on revenue and improve cash flow. Additionally, with a greater influx of capital, you can build up reserves so you can act on opportunities to grow your business instead of putting off plans because of unpaid client invoices.

Take the Next Big Leap

By taking care of liabilities and credit, along with improving cash flow through accounts receivable factoring, you can create a sound strategy to grow your business. At New Century Financial, we provide the most comprehensive factoring services to help businesses improve cash flow and achieve rapid growth. Make this year even more successful, and grow your business with fast, flexible, and efficient factoring from New Century Financial.

The Difference between AR Financing and AR Factoring

While the rate at which everyone does business has increased tremendously from even a few years ago, one thing remains constant – invoices are issues with payment schedules of 30 days or longer. This forces businesses to wait up to a month or more for revenue to trickle in. When businesses want to boost cash flow and access revenue faster, they can choose between AR financing and AR factoring. While both methods may seem similar, they function in very different ways.

AR Financing at a Glance

Accounts receivable financing – or AR financing – is a form of asset-based lending. Receivables are used as collateral to create a line of credit that businesses can borrow against. Often, true AR financing involved term contracts, and the amount of financing available can go up or down depending on the number of receivables in a given review period. Some AR financing providers also impose upkeep fees on these asset-based lines of credit. Other forms of AR financing offer loans against the receivables, which could impact credit ratings.

AR Factoring at a Glance

AR factoring is a different approach to leveraging receivables for capital. AR factoring is a fast and transparent procedure that delivers money for receivables, often within a single business day. AR factoring is structured around the actual receivables and the “creditworthiness” of the clients who were issued the invoices. AR factoring provides capital for receivables, so there is no line of credit. Additionally, true AR factoring services do not charge maintenance fees or lock clients into long-term contracts. AR factoring is also versatile, allowing businesses to choose which invoices or parts of invoices get factored.

Pay Attention to the Details

AR financing and AR factoring are often conflated, so it helps to pay attention to which services you are actually getting from your provider. Do not hesitate to ask questions to make sure you are not getting into a contract when you only need funding for your receivables right then and there. Also, check to see if there are maintenance fees and other charges.

At New Century Financial, we provide true AR factoring services, so businesses can access capital for their unpaid invoices within 24 hours. There are no contracts or extra fees, and businesses are able to choose which receivables or parts of receivables get factored. When you want fast cash for your receivables without any strings attached, contact the experts at New Century Financial.

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Creditworthiness: What You Need to Know About Your Clients

Creditworthiness is a term often used by financial institutions to gauge their ability to secure loans or other types of financing. It would stand to reason that business owners are concerned about their own creditworthiness, which is why many are focused on building credit ratings for their organizations. But should you be concerned about the creditworthiness of your clients?

Credit Worthiness and Cash Flow

The creditworthiness can give you insight into your clients. You can take a quick glance and see if they are relatively new, have a robust and established track record, or if they are going through a rough patch. Additionally, the creditworthiness of your clients can be an indicator of how quickly you will be paid for the invoices your issue after sales are made. A client with a high credit record is likely to provide timely payments on goods and services. A client with a lower score may take longer, or even ask for an extension. Others may be more troublesome, and receivables could age out of the payment schedule and end up going to collections – a situation no business owners wants to deal with.

Accounts Receivable Factoring and Creditworthiness

Businesses use accounts receivable factoring to get access to revenue faster than waiting on staggered payment schedules. Receivables are converted to cash within 24 hours, resulting in a stronger cash flow and the ability to build up reserves for growth. New Century Financial goes a step further, and provides business owners with the ability to check on the creditworthiness of their clients. Having this insight gives business owners an idea of which clients might become a risk with payments in the future, or which ones are in good standing and might be worth perusing for long-term accounts and larger sales.

New Century Financial is a national leader in accounts receivable factoring services. Our process is fast, transparent, and we allow business owners to decide which receivables or parts of receivables get factored. There are no long-term contracts, and we provide the tools necessary to check up on the creditworthiness of your clients and plan for long-term success. Contact New Century Financial today to get started.

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Getting a Head Start on Your 2020 Business Taxes

Business taxes may seem like the best thing to look forward to in 2020, but taking time to get organized and sorted now can save business owners a lot of headaches in the new year.

Assess Your Business Liabilities

The deadline for 2019’s quarterly tax year is on January 15, 2020. Businesses must pay 100 percent of the previous year’s liabilities and 90 percent of the current year’s income taxes to avoid heavy penalties from the IRS. Business taxes in the form of IRS liabilities are different, depending on the size and type of organization you run. Businesses making fourth-quarter tax payments in January need to calculate taxes separately, especially if capital gains benefits are involved.

Estimated Business Taxes

Making four estimated business tax payments is often easier than making one large payment. Estimated business taxes are calculated by figuring out taxable income, deductions, credits, adjusted gross income, and other items. Paying estimated business taxes can help to make things easier throughout the year, especially if your business has started handling taxes for new employees.

Keep Track of Expenses

Recent tax reforms now hold that businesses can only claim 50 percent deductions for meal and entertainment expenses. Previously, businesses could claim 100 percent deductions, so be aware of this when filing in 2020. When filing business taxes, keeping track of your deductible expenses such as meals, travel, equipment, and more makes the process much easier.

Pass-Through Status

There are a number of new deductions for business owners who pass through a sole proprietorship. Qualifying business owners will be able to deduct up to 20 percent of their qualifying business income. The pass-through status does not apply to doctors, attorneys, athletes, or dentists.

Talk with Your CPA

If you enlist the services of a CPA, they will be able to keep you apprised of the latest reforms for business taxes, and how they will impact your quarterly or yearly payments. Talking with your CPA can help you streamline the tax filing process so you can focus on running and growing your business without staying up late with a headache and a calculator.

2020

Make “Reducing Business Debt” One of Your New Year’s Resolutions

Many businesses are closing out 2019 with debt and other liabilities on the books. Reducing business debt is a great and realistic resolution that entrepreneurs can set for themselves in 2020. Reducing business debt helps to improve credit ratings, widen financing options, and removes strains on cash flow. Creating a plan for reducing business debt is not as insurmountable as it may initially seem.

Step 1: Reducing Debt through Consolidation

Some new and small business owners are entering 2020 with debt and liabilities centered around loans. In many cases, those small business owners are balancing payments on multiple loans, each with it’s own installment amount and interest rate. Debt consolidation is a way to combine those loans into one singular loan with manageable installments and interest rates. By having business debt under one loan, entrepreneurs can pay off multiple creditors quickly and efficiently.

Step 2: Stay on Top of IRS Liabilities

It is of the utmost importance to stay on top of IRS liabilities, such as 941 payments. Letting IRS liabilities to slip can impact business credit ratings, lead to tax liens, revenue garnishment, and more. Owing the IRS money is not something to be taken lightly, and paying attention to those quarterly 941 payments will help your business stay in good standing with the IRS. If you cannot make IRS tax payments on time, let them know. The IRS has forms for delays or to work out a resolution on owed taxes.

Step 3: CPA Services

Many small business owners find themselves wearing multiple hats, including the one for in-house accountant. Hiring a CPA or even accounting software can reduce the headaches caused by balancing the books. CPA services can help guide entrepreneurs who are focused on reducing debt and create budgeting strategies.

Step 4: Improving Cash Flow

Boosting cash flow is a great way to ensure there is capital on hand to cover overhead, liabilities, and reduce debt. Accounts receivable factoring is a debt-free method of converting unpaid invoices to capital. Since many small businesses issue invoices with staggered schedules, waiting on payments can cause lag in revenue, which can lead to liabilities and debt. Factoring gives businesses faster access to revenue and the ability to build up capital reserves, which can correct strains on finances.

New Century Financial is a national leader in accounts receivable factoring services for businesses of all sizes. If you are focused on reducing business debt, accounts receivable factoring is a fast and efficient way to build up the capital you need to make payments on loans and IRS liabilities. Contact New Century Financial today to get started.

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Improve Cash Flow and Achieve Growth for the New Year

As 2019 winds to a close, many businesses are trying to position themselves for a robust start to the new year. Some want to improve cash flow to reduce gaps in revenue from customer payments. Others want to achieve growth and reach their projected goals without relying on debt-based loans. All of these are attainable, and there’s no better time like the present to start.

Improve Cash Flow for 2020

Many businesses that make sales at the end of 2019 will not see revenue from their customers until 2020. Invoices with staggered payment schedules of 30, 60, or even 90 days could find themselves waiting until January, February, or March to see revenue for their sales. This could force businesses to put plans on hold or enter the new year in a financial position that is less than ideal. The best way to improve cash flow is to use invoice factoring. Invoice factoring converts unpaid receivables to cash within 24 hours, so businesses can stop waiting on staggered payment schedules and greatly increase the amount of revenue coming into their accounts.

Achieve Growth

When your clients are making payments on invoices according to staggered payment schedules, accumulating the capital necessary to roll out growth projects can be challenging. Businesses are forced to move internal goal posts, stalling what would otherwise be rapid expansion. As shown above, invoice factoring can improve cash flow, but it can also help businesses achieve growth. As the rate of cash flow improves, businesses can build up capital reserves to take advantage of growth opportunities without relying on debt-based loans to reach the next big milestone.

Make 2020 a Lucrative New Year

Invoice factoring can help your business start off 2020 with a big advantage. At New Century Financial, we specialize in invoice factoring solutions to help businesses improve cash flow and achieve growth. Our comprehensive invoice factoring services are fast and transparent, with no contracts or hidden fees. We also place control in your hands, so you can choose which invoices or parts of invoices get factored. Contact New Century Financial today and make the upcoming year a prosperous one.

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Rethinking Standard Business Procedures for Receivables

For the longest time, businesses of all types have been issuing invoices with staggered payment schedules. This courtesy gives clients a period of 30, 60, or even 90 days to pay for goods and services received from businesses so as not to place a strain on finances, especially for large orders. However, the business landscape has changed over the decades, and commerce takes place at a much faster rate than ever before. Apart from banking, weekends mean less and less in the business world, and our constant connection via the internet and mobile devices have us closing deals and making sales with the swipe of a finger. So why should your business still have to wait a month or longer to receive payments on aging receivables?

Unpaid Receivables Place a Strain on Businesses

While the standard business procedure of issuing invoices with staggered payment schedules works out great for customers, it can create a major strain for businesses. Waiting a month or longer for payments causes gaps in cash flow. During that time, businesses have to make payroll, cover regular overhead expenses, pay for materials and inventory to fill customer orders, maintain marketing campaigns, and more. This means that at any given time, businesses are spending more money than they are receiving, and it makes it nearly impossible to achieve successful growth.

Rethinking Receivables

Businesses need access to working capital to cover all the expenses listed above, and to take advantage of growth opportunities. For these reasons and more, businesses are taking advantage of the benefit of accounts receivable factoring. While factoring is not a new concept, it is the one form of financing that has kept pace with the business world so companies can get money quickly and efficiently. By factoring receivables, businesses can get their unpaid invoices converted to cash which is made available within 24 hours. There are no contracts or hidden fees, and businesses can choose which receivables or parts of receivables get factored. Factoring provides a fast turnaround and the flexibility that today’s business owners demand.

New Century Financial provides the most comprehensive accounts receivable factoring services and solutions. Contact our offices today and stop letting standard procedures slow down your cash flow.

Need Fast Cash for Your Business? Not All Financing Is the Same

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. Because lenders have so many checks and balances in the approval process, funds may not be made available for weeks. And to top it all off, a short-term loan places debt on the books, and making those regularly scheduled payments can place a severe strain on cash flow and finances further down the line.

MCA

A merchant cash advance, or MCA, is often advertised as a way for businesses to get fast cash without debt. Digging a little deeper, while it’s true that MCAs do not place debt on the books or impact credit ratings, they still create a liability. Businesses can only access merchant cash advances if they accept credit card payments from customers at a point of sale. A small percentage of that sale is applied electronically to the balance owed. Because no collateral is required, interest rates are typically higher than with traditional loans, and there are extra fees attached for processing payments. At the end of the agreement, if the balance is not repaid in full, businesses must pay off the remainder in one lump sum. While MCAs may seem like a way to get fast cash, there are a lot of strings attached.

Invoice Factoring

Businesses across all industries use invoice factoring to get fast cash without debt, long processing times, or high requirements. There are no hidden fees, no contracts, and no liabilities. Invoice factoring is a simple process where businesses submit unpaid invoices so they can be turned into fast cash within 24 hours. This improves cash flow instead of waiting 30, 60, or 90 days to receive payment from clients. By using invoice factoring, businesses can boost cash flow and achieve rapid growth. The approval process is simple, and invoice factoring is an ideal fit in our fast-paced economy.

New Century Financial is a leader in factoring services. Contact our offices today to learn why businesses prefer our factoring services when they need fast cash.