| Takeaway | Details |
|---|---|
| 🏢 What New Century Financial Is | Established in 1985 and headquartered in The Woodlands, TX, New Century Financial provides invoice factoring nationwide for B2B companies. |
| 💵 Primary Funding Product | Offers accounts receivable factoring, advancing 70–90% of invoice value with the remaining funds released after customer payment minus fees. |
| ⚙️ How Funding Works | Instead of loans, companies sell invoices for immediate cash, helping stabilize cash flow, support payroll, or fund growth. |
| 🔍 Qualification Requirements | Approval is based more on customer invoice quality and payment strength than the business’s credit score or collateral position. |
| 📞 Application Experience | Known for a straightforward process, professional guidance, supportive staff, and fast responses. |
| 📬 Post-Funding Structure | Often uses non-notification factoring, allowing businesses to maintain customer relationships while continuing to manage their own collections. |
| 👍–👎 Pros & Cons | Advantages include fast funding and accessible qualification; drawbacks include higher factoring fees than traditional loans and limited product options. |
| ⭐ UCS Rating | 4.2 out of 5 – a strong factoring provider with excellent service, but limited by offering only one type of financing. |
Small business owners often turn to alternative financing when they can’t qualify for traditional business loans. These conventional products may require high credit scores, long time-in-business requirements, and extensive financial documentation that businesses experiencing growing pains may not have. When companies need funding faster and can’t wait weeks or months for bank approvals, invoice factoring can provide a solution.
Invoice factoring allows a business to sell its unpaid customer invoices to a third-party factoring company in exchange for immediate working capital. Instead of taking on debt, the business converts accounts receivable into usable cash. Companies like New Century Financial specialize in this form of financing, helping businesses stabilize cash flow, support payroll, purchase inventory, invest in growth, or cover unexpected challenges.
However, invoice factoring terms, fees, and structures vary widely among factoring partners. Businesses need to evaluate all funding options before choosing one, especially when cash flow is tight and timing matters.
In this review, we’ll explain how New Century Financial works, including the available options, pros and cons, and application process to help you decide if it’s right for your needs. Specifically, we’ll answer these questions and more:
New Century Financial (NCF) is a factoring and financial services company headquartered in The Woodlands, Texas. The company provides invoice factoring for U.S.-based businesses that need immediate cash flow support without taking on traditional loan debt. Its financial services focus on B2B companies that issue invoices and wait for payment from customers, vendors, or government entities.
Since opening in 1985, New Century Financial has purchased over $1 billion in accounts receivable. The company serves a wide range of industries, including manufacturing, distribution, staffing, transportation, oil and energy, wholesale supply, and service-based businesses. Its services are available nationwide, and the company positions itself as a long-term strategic factoring partner for growing organizations.
Clients of New Century Financial range from small enterprises with annual sales of $250,000 to mid-sized businesses with annual revenues of $50,000,000. Whether a company is expanding, facing seasonal challenges, or looking to scale operations, NCF specializes in meeting cash flow needs by purchasing invoices rather than conventional business loans. New Century Financial is considered a valuable tool for businesses of any size to address cash flow needs and business growth.
New Century Financial offers invoice factoring, in which the company purchases outstanding invoices at a discount and provides immediate funding. Selling accounts receivable gives companies access to working capital without waiting 30, 60, 90, or more days for customers to pay. New Century Financial provides financing to businesses primarily by purchasing clients’ invoices at a discount.
While factoring terms can vary by customer, the general process includes:
Factoring rates are often expressed weekly or monthly, with pricing dependent on risk, invoice volume, customer creditworthiness, and the speed at which the business’s customers typically pay. These fees are competitive with those of many factoring companies in the industry.
New Century Financial provides immediate cash for routine working capital needs, new business opportunities, or unexpected business challenges. This can support payroll, fuel expenses, raw material purchases, inventory restocking, taxes, or growth initiatives.
Because funding is based on the credit strength of the business’s customers—not the business itself—companies with weak or limited credit histories may still qualify. New Century Financial is known for its easy application process and competitive rates.
Unlike traditional business lenders, New Century Financial focuses primarily on the quality of the business’s accounts receivable rather than its credit score, collateral base, or time in business.
Businesses are more likely to qualify if:
While specific financial minimums are not publicly listed, companies generating consistent invoiced revenue and needing month-to-month operating capital are typical candidates.
Invoice factoring works differently from business loans. A traditional business loan provides a lump sum and requires scheduled repayments of principal and interest over time. Factoring is a business-to-business financial transaction in which a company receives an advance based on its accounts receivable. Because it’s not debt, businesses do not add liabilities to their balance sheets. However, small business factoring can sometimes be more expensive than traditional lending, especially if customers pay slowly and factoring fees accumulate.
The costs of factoring vary depending on volume, customer payment reliability, contract structure, and industry type. Factoring is priced using factor rates rather than APRs, and customers can calculate costs by multiplying the factor rate by the invoice value. When invoices are paid late, fees can accumulate daily or weekly, increasing the cost of factoring. Still, many businesses view the trade-off as worthwhile because it offers the speed and flexibility of receiving cash without the traditional underwriting process.
New Century Financial reviews credit reports, typically checking the business’s credit and the credit of the companies that owe on the invoices. These are usually soft credit checks that do not affect credit scores. Because factoring is a transaction rather than a loan, it generally does not build business credit, as factoring activity is not typically reported to business credit bureaus.
It’s important not to confuse New Century Financial Inc. with the similarly named California-based mortgage company New Century Financial Corporation, which closed in 2007. Online searches may mix the two due to similar names, but the invoice factoring company is not affiliated with the defunct mortgage business in any way.
Overall, New Century Financial has a strong online reputation, with positive reviews emphasizing its communication, transparency, and customer service. New Century Financial has been described as a critical partner for small businesses seeking funding.
Many reviews highlight that Clients have noted that New Century Financial keeps them informed throughout the funding process and that they have expressed satisfaction with the ease of the application process. Several customers highly recommend NCF.
Businesses looking for a handy tool to solve cash flow problems may find this company a strong fit. Many customers report a straightforward process, with very little work required once the factoring agreement is executed and processes are in place.
New Century Financial offers a business funding affiliate program. ISOs and business loan brokers, or invoice factoring brokers, can partner with the company to refer clients to its factori
The application is designed to be streamlined and straightforward, with fast turnaround times for businesses needing support quickly.
Businesses begin by filling out the contact form on New Century Financial’s website or calling the office directly to speak with a representative.
Applicants provide basic documentation, such as invoices, customer lists, corporate information, and bank statements.
New Century Financial analyzes the receivables and presents a pricing proposal detailing advance rates, factoring fees, and terms.
Once both parties agree to the pricing, the company executes the factoring agreement to begin funding.
Approved businesses receive cash funding within as little as 24 hours, depending on invoice submission, routing, and client processing schedules.
After funding, New Century Financial operates differently from some factoring companies. Many factoring providers take over invoice collection directly and notify the business’s customers that invoices should now be paid to the factor. This is known as notification factoring.
New Century Financial often operates under non-notification factoring, meaning customers may never know a factoring relationship exists. Instead of taking over the collections process, the business usually maintains customer relationships and continues its billing and payment functions. This gives companies more control over communication, customer experience, and account relationships.
New Century Financial typically offers recourse factoring, which means the business must repurchase unpaid invoices after a specified period. This structure is common among factoring companies and usually allows lower rates than non-recourse arrangements.
Factoring proceeds are paid in two installments: an upfront advance and a reserve payment upon customer payment of the invoice. The company processes payments daily, releasing funds as accounts clear, helping businesses maintain consistent access to cash throughout the month.
New Century Financial provides fast business funding without requiring businesses to take on debt. Companies with lower credit scores, limited histories, or insufficient collateral may qualify based on the strength of their customers rather than their financials.
The non-notification factoring model allows businesses to maintain customer relationships without alerting clients that invoices are being factored. The company also has a strong reputation for attentive service and clear communication, with many customers reporting a great experience, quick response times, and professional staff.
Businesses in industries such as logistics, staffing, manufacturing, and distribution that need steady cash flow may find factoring through New Century Financial a valuable option.
While factoring may be faster and easier than pursuing bank financing, it can be more expensive, particularly for companies whose customers take longer to pay invoices. Recourse factoring also means that businesses remain financially responsible for non-paying invoices.
Additionally, New Century Financial does not offer any other small-business funding products beyond factoring, so businesses that need term loans, equipment financing, merchant cash advances, or lines of credit may need to work with additional financial partners. Finally, companies that rely heavily on extremely thin margins may find factoring charges too high to absorb.
Pros
Cons
Yes. New Century Financial is a legitimate factoring company with a registered address at 1725 Hughes Landing Blvd, The Woodlands, TX. It has been in business since 1985, has funded more than $1 billion in receivables, and maintains a strong online presence and physical business address. The company has verified customer testimonials, a favorable Trustpilot profile, and a long history of working with small and mid-sized businesses nationwide.
Overall, customer reviews for New Century Financial are highly positive. New Century Financial has a 4.9 rating on Trustpilot.
Customer reviews consistently highlight New Century Financial’s professionalism, responsiveness, and knowledgeable staff. Many clients praise the quick response times and the attentive support received throughout the onboarding and funding process. Several clients commented that the company has “great staff” full of “hard-working people,” and keeps them informed of the process daily.
The application experience is often described as very easy, requiring minimal effort once set up, with clear communication and guidance at every step. Clients frequently recommend the company for their accounts receivable factoring needs.
Negative reviews are limited, but some customers note that factoring costs can rise if invoices are paid slowly, and others express a desire for additional funding options beyond factoring.
New Century Financial may decline an application for various reasons, such as a poor business credit score or, more importantly, if your customers have bad credit. Additionally, not all businesses are eligible for invoice factoring depending on their business model and payment processes.
If declined, New Century Financial should provide written notice. Contact the company directly if you need more information or to discuss your options.
Fortunately, small business owners have many funders and lending options to consider. You can likely find other invoice financing services, as well as alternative lending options and more conventional business loans.
Working with a small business loan marketplace (like UCS) allows you to apply to a network of lenders with a single application and receive multiple offers. You can then get guided support in choosing the best option for your small business.
You may be interested in one of the following small business loan options:
New Century Financial is well-suited for small and midsize businesses that need steady, reliable cash flow and don’t want to wait 30 to 90 days for customers to pay invoices. Companies in staffing, logistics, manufacturing, distribution, and other B2B industries may find the service extremely useful. Businesses with credit challenges or cash flow limitations may also benefit, as underwriting focuses more on customer payment strength than on the company’s credit profile.
However, businesses that need traditional business term loans, revolving business lines of credit, or equipment financing may need to look elsewhere, as New Century Financial focuses exclusively on invoice factoring. Those with thin margins or slow-paying customers may also find factoring costs challenging.
Based on the available information, we rate New Century Financial 4.2 out of 5. It’s a solid choice for invoice factoring with stellar reviews, but its lack of other financing options is its only drawback.
Disclaimer: The New Century Financial trademark is owned by New Century Financial, Inc., and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from New Century Financial, Inc.
