Businesses throughout the United States have been impacted by COVID-19. From service companies to staffing agencies, manufacturers to logistics companies, all sectors have been affected. In order to weather the current condition, it is of the utmost importance that businesses maintain a strong cash flow.
How COVID-19 Impacts Cash Flow
As cities place restrictions on which businesses can remain open, limiting hours of operation, and more, business owners need a way to access revenue quickly. There is no doubt that some invoices will age out to collections. Restricting operations will restrict cash flow, but there is no reason why businesses should have to wait 30 days or longer to get paid for sales made prior to the outbreak. After all, businesses still need to pay bills, make payroll, and formulate a strategy to make it through this bout of COVID-19 so they can resume operations once this is all over. Businesses that can speed up cash flow now can build up working capital to offset the disruption caused by COVID-19 and the measures being taken to limit its impact.
Fast Access to Revenue
In order to unlock the capital tied up in unpaid invoices, businesses are turning to accounts receivable factoring. Factoring converts all unpaid receivables to cash, which is made available within 24 hours. This allows businesses to get immediate access to capital in order to cover expenses, make payroll, and make plans so they can successfully come out of the COVID-19 epidemic and continue operations in the future. Unlike business loans, accounts receivable factoring does not place any debt on the books, so businesses get to preserve their credit ratings and collateral, without worrying about interest rate fluctuations from the Federal Reserve. Almost any business that issues invoices with payment schedules of 30, 60, or even 90s days can access factoring services.
At New Century Financial we provide comprehensive accounts receivable factoring services nationwide. If you want fast access to money from outstanding invoices so your business can make it through the restrictions imposed by COVID-19, contact the experts at New Century Financial today.