For new and small businesses, covering overhead costs while trying to grow operations can be a challenge. Payroll, utilities, advertising, fuel for vehicle, materials and supplies – all of these things can place a strain on finances, especially when business owners are trying to court larger client accounts and act on growth opportunities.
Understanding Costs and Growth
Every business has overhead costs. Sometimes those costs are only limited to paying employees and purchasing supplies to fill customer requests as needed. When businesses are trying to position themselves for growth, the costs can increase for marketing campaigns, spots at trade shows and expositions, and rolling out new products and services. These costs can eat into revenue and stretch finances to the limit.
The Importance of a Healthy Cash Flow
In order for businesses to grow, a healthy cash flow is needed to not only cover costs, but to accumulate capital reserves as well. Many businesses do not receive immediate payment with each sale or customer order. Most adhere to staggered payment schedules of 30 days or more, depending on the type of business. The waiting period can place an even greater strain on finances, and force businesses to put off growth projects and deviate from their projected plans. Maintaining a healthy cash flow allows businesses to grow without having to resort to debt-based loans, which further impact revenue.
A Solution for Overhead and Growth
Accounts receivable factoring allows businesses to convert invoices to cash without waiting on long payment schedules. By using accounts receivable factoring, businesses can cover overhead expenses, while also positioning themselves for growth without the burden of debt. Factoring services are fast, efficient, and reduce financial strains for businesses. Payroll, supplies, marketing, travel, and more can easily be covered without having to wait a month or longer to receive payments. Factoring services are the key to a healthy cash flow and rapid business growth.
New Century Financial specializes in accounts receivable factoring for businesses throughout the United States. Contact our offices today to put your business on the fast track for growth and long-term success.