Constant Working Capital Flow: A Must For SMEs

Money is the most critical factor for a business, irrespective of the size, nature or sector. From the initial investments required to start a business to the constant working capital that is required for smooth operation in a business lifecycle, cash needs are a constant.

While established large business enterprises often do not face sudden capital flow issues, that’s definitely not the case with small and medium scale enterprises (SMEs). Sudden roadblocks are a frequent occurrence in the world of SMEs and so is the need for instant cash flow.

However, business worlds are no longer dependent on banking institutions alone. There has been a wide acceptance for nonbanking institutions like Mantis Funding, especially amongst SMEs.

The need for working capital
Cash flow problem is the most common apprehension for an SME owner. Working capital is required throughout the lifecycle of a business venture to manage daily operations along with plans for growth and expansion.

However, reasons like receipt of late payments by clients, sudden payment needs due to a rise in product prices, usage of funds for increased rent or wage payments are just some examples of the same. With a shortage of working capital, SME’s sometimes face serious business threats like closure for a short period, the decline in production or even refusing some lucrative client offers that ensures good future business.

Advantages of obtaining a merchant cash advance
Facing such sudden cash crunch scenarios creates serious losses for SMEs in the long run. And then, the possibilities of obtaining advance cash support from traditional banking setups is usually not feasible for small and medium scale ventures.

This is when capital funding companies like Mantis Funding LLC play an important role in supporting SMEs. By simply reviewing the overall revenue history of the SME, Mantis Funding cash advances are instantly released to rescue SMEs from a crisis situation.

Following are some key advantages of choosing Mantis Funding LLC for working capital advances:

1. More emphasis on revenue stream- Capital funding companies like Mantis Funding review the borrower’s revenue history rather than emphasizing on the present-day credit score. Since repayments are directly based on the credit swipe transactions, the approvals (if the revenue stream history is positive) are almost instantaneous.

2. Flexible repayment options- Repayments are always designed to be on par with the monthly sales. A percentage of monthly sales is cut at source for repayment of the cash advance. The option is hence pretty convenient for SMEs who do not have to plan financial savings for cash advance repayment. Additionally, there are no limitations of tenure for cash advance repayment which is extremely attractive for SMEs, especially those dealing in seasonal businesses.

3. Online and hassle-free application procedures- Yes, the ease of applying online along with a quick review of the documents and instant transfer of funds is one of the most attractive features of capital funding companies like Mantis Funding LLC. Saving their precious time.

Easy top-up options too
Yes, most capital funding companies offer quick top-ups on the existing cash advances if an SME faces conditions of higher need. While traditional banking institutions do not offer such facilities, Mantis Funding cash advances can be easily increased with a top-up application to the lender.

Constant working relationships with SMEs enable capital funding lenders to understand the exigencies of a business world better and hence come out with more flexible and customer-friendly solutions.

Capital Funding Companies Are The Best Support System For A Small Business

A good number of small and micro business owners are realizing the value attached to capital funding companies like Mantis Funding when it comes to meeting their urgent cash flow needs.

Not that the capital funding companies will simply pass out cash on receipt of a request. They do have their own evaluation criteria. However, when it comes to small and micro business ventures, the evaluation criteria of capital funding companies which rely on reviewing the revenue stream and business model of a company (rather than the credit score) is more practical.

Small Business Needs
The world of business is almost synonymous to a roller coaster ride. And that’s especially true for small and micro-business ventures. There can be a sudden inflow of profits streaming in or there could be a hard cash crunch that can significantly impact the daily operations of the business.

Situations like a sudden increase in product prices, increased wages, change of vendor, rent increase, business expansion plans, etc can arise without warning.

While these cannot really be avoided, availability of sufficient working capital inflow can smoothen the process and get things going in the right direction.

Traditional Funding Options
So yes, traditional cash advance options like banks are there for your consideration when small business cash advances are needed. However, banks may not always consider the borrower’s request.

They are pretty stringent on their terms and conditions and rely heavily on the current credit score of the borrower for sanctioning a cash advance. Additionally, banks do not find it profitable to find particularly small cash advances which may cause an instant rejection.

And then, there are other issues to consider. The process of applying for a cash advance, the verification of the borrower’s credentials, and the cash advance sanction is a time taking one. When merchants face a cash flow need, time is something that they don’t have on their side.

Getting instant cash inflow straight to their accounts on flexible repayment terms is the need. That’s exactly where capital funding companies come to play like those offering the merchants a quick Mantis Funding cash advance.

How Do Capital Funding Companies Work?
When you need a very small cash advance that’s just sufficient to tide over your ongoing rough patch, capital funding companies like Mantis Funding are the best possible options around. Where traditional funding options fail to support, capital funding companies help small merchants by giving them exactly what they need with minimal complications and at an instant pace.

Capital funding companies like Mantis Funding work by reviewing factors like your revenue stream, your customer base and the overall business model rather than solely relying on the credit scores. This how they determine the reliability of the borrower and once the same is established, a quick agreement on repayment terms is settled.

Repayments of Mantis Funding cash advance are usually flexible and are carried out by “split withholding” manner wherein a small percentage of the monthly credit sales of the business go as repayments. The deduction at source (and at par with the monthly sales) is often a convenient factor for small business owners who do not have to rely on keeping a fixed repayment value, as with traditional banking options.