New Century Financial is a factoring service with competitive rates and no hidden fees or contract commitments for you to meet. It offers services to a variety of industries, including oil and gas, service, staffing, and transportation. It also services the technology, manufacturing, energy and distribution industries.
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New Century Financial Rates and Fees
Once New Century Financial buys your invoice, it will advance 80% to 95% of the invoice amount upfront. After it receives payments from your customers, it funds the rest of the invoice to you, minus its fees. This invoice factoring company charges a minimum of 1.25% per invoice, which is about average for this industry, though you will find companies with lower rates.
According to New Century Financial's website, it will factor your invoices valued from $25,000 to $5 million. Given the high minimum amount, small businesses may not be able to factor with New Century Financial, but larger companies shouldn't have an issue.
One of the best things about New Century Financial is that you don't need to worry about any startup fees, application fees, due diligence fees or other hidden fees. Furthermore, there are no factoring commitments, meaning that you don't have to factor a minimum dollar amount every month or use the service for a minimum amount of time. In other words, you have no obligation to keep using this company. You can factor as much as you need when you need it.
In the past, many factoring companies charged termination fees, and some still do. Fortunately, there will be no termination fee if you no longer need to factor your invoices or otherwise require New Century Financial's services.
New Century Financial works with companies across the United States and considers the creditworthiness of your customers. According to its website, it does use your FICO score as a ranking factor, though it claims a low FICO score will never be the sole reason it declines to do business with you. Still, other companies we reviewed completely ignore your credit score, which may make them a better fit if you have poor credit.
Ease of Application
You can apply for services from New Century Financial on its website. The preapproval process takes less than five minutes and is painless. Once you've filled out the preapproval form and submitted the required documents, you can be officially approved within 24 hours. To make sure the approval process runs quickly, make sure you prepare the following documents:
- A current accounts receivable aging report
- Your most recent tax return
- A sample invoice with backup documentation
After your account is set up, you can receive funding from your invoices the same day that New Century Financial buys them from you, which is faster than many other factoring services we reviewed. Most factoring services require 24 hours to advance an invoice to you.
Like all factoring services, New Century Financial offers telephone and email support. We reached out to the company as a potential customer to test its customer service. The people we spoke to were transparent and honest about fees and services. They were open about what might be best for the situation we presented, and we had a positive experience with this company overall.
New Century Financial is not as transparent online with its rates as other companies we reviewed. However, we had a positive customer service experience with the company, with representatives disclosing information such as fees, services and rates over the phone.
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