Small businesses are looking for sustainable financing. Sustainable financing is a solution that is reusable, does not impact credit ratings, and does not place debt on the books. Many people think such a thing does not exist, but the truth is that sustainable financing is very easy to find, and it is available to businesses in almost every industry.
Not All Financing is Sustainable
Business owners understand that traditional loans are not sustainable. After all, traditional loans are single-use, require collateral, lower business credit ratings, and put debt on the balance sheet. While alternative lending products exist, not all feature sustainable financing. Merchant cash advances, for example, are marketed to businesses as offering debt-free financing. While this is true, merchant cash advances also come with hidden fees and high interest rates, making them nearly impossible to repay in-full before the terms of the agreement have come to a close. This leaves businesses with large balloon payments. Other alternative lending products have similar structures, and it is wise for business owners to thoroughly research the fine print before applying for funding that can adversely affect finances.
Sustainable Financing Exists
For a sustainable financing solution, businesses use factoring services. Factoring is not a loan, therefore businesses can preserve credit ratings and avoid taking on necessary debt. Factoring is reusable. So long as there are unpaid invoices, businesses can use factoring to turn those invoices to immediate cash in as little as 24 hours. Unlike merchant cash advances, factoring has no hidden fees or high interest rates. Factoring services are used by businesses across all industries to boost cash flow and maintain a reserve of working capital. Also, by using factoring services and building capital reserves, businesses can reduce the need for other forms of financing to cover expenses and roll out plans for growth.
At New Century Financial, we provide sustainable financing solutions to businesses throughout the United States. We offer the most comprehensive factoring services with no long-term contracts or hidden fees. If you want fast access to working capital without debt, contact the team at New Century Financial today.