When businesses position themselves for growth, the thought of taking out one or more loan is not far behind. For the longest time, debt-based loans have been the answer for everything from overcoming cash flow issues to expanding into new markets. However, business owners spanning all industries are rethinking the traditional growth financing model.
The Limitations of Debt-Based Financing
Growth-focused businesses want to reach their fullest potential. Loans may seem like the conventional method to attain growth capital, but they can also be very limiting. Taking on debt to achieve growth usually means businesses have to walk back a few goals in order to pay off the balance of their loans without creating a severe financial strain. Debt and impacted credit ratings add to the risk of business growth when the end result does not guarantee a proportional increase in sales to offset financial liabilities. In the end, the accumulated debt can keep businesses from hiring the workforce they need to carry out growth projects, or the inability to meet expanded overhead costs.
Achieving Growth Without Debt
Accounts receivable factoring helps businesses position themselves for growth without having to jump through hoops or take on debt via traditional loans. At its very heart, factoring is the simple process of exchanging unpaid customer invoices for cash. The simple transaction does not place any debt on the books, and it is a fast and efficient way for businesses to improve cash flow and quickly accumulate the capital necessary to act on growth opportunities. Accounts receivable factoring has come a long way, and has become a mainstay of business financing for everything from correcting minor cash flow issues to funding large projects without negatively impacting credit ratings or taking on debt. Businesses can now choose which invoices to submit for factoring, and even which parts of invoices, without any contracts, limits, or hidden fees. Accounts receivable factoring is used in every industry from niche startups to major corporations.
New Century Financial is recognized as a leader for providing comprehensive accounts receivable factoring services and tailoring solutions to meet the needs of business owners. Contact our offices today to learn how our factoring services can help your business achieve growth and long-term success.