6 Must-Know Facts About The Alternative Lending Industry

Despite what the pundits predicted a few years ago, alternative lending is here to stay. In fact, it has become a mainstay of small and mid-sized businesses looking for funding AND is slowly eating into the client base of the traditional banking sector.

The SMEs first started noticing alternative online lenders a decade ago when they faced a tightening credit situation in the wake of the 2008 market meltdown. When the capital from traditional sources dried up, alt-lenders saved many small businesses by offering flexible and quick funding.

Over the years, their commitment to the small business community of America and their fantastic funding offers have made them more and more attractive to business owners across the country.

For SME owners who haven’t yet partnered with alternative online lenders, here are a few important facts about the industry.

  • Alt-financing offers are flexible

    There is an unprecedented amount of flexibility available in the alt-fi sector. Most lenders, such as the leading New York-based Mantis Funding, offer deals between $2000 to $250,000. This means that SME owners don’t have to choose from 2-3 fixed amount slabs that banks offer – they can apply for precisely what they need and avoid getting locked into long term deals. Mantis Funding reviews also point to another feature of alt-lending – extreme personalization. Along with with the amount, almost all terms, fees, etc. are negotiable.

  • Expect a fast-moving process

    One of the most critical benefits of alt-lending is the speed of the process. Where banks usually take weeks, online business lenders approve and transfer funds within days. For smaller amounts – one can actually get the money in the bank in less than 24 hours.

  • The process is all online

    The alternative financing sector has managed better processing speed, higher customer satisfaction, and more accurate risk assessment by leveraging the latest fintech. With most alt-lenders, the process is almost entirely online. For example, Mantis Funding reviews the client applications, documents, and all transaction records online.

Digital technology – some of it AI-enabled – is also used to prepare risk assessment reports based on several data points. However, all this digital technology is led by a fund manager who talks to every client to understand their motives.

  • Approvals are based on a holistic look at the credit worthiness

    Unlike the banking sector, credit scores don’t hold a dominant position in the approval process. They are just one of the many data points used to decide the ability of the business and the owner to repay the funds. This makes alt-lending especially attractive to business owners with poor credit ratings.

  • Collaterals are not mandatory

    Almost all alternative lenders process secured as well as unsecured funding deals. Even if an owner is applying for a significant amount, it is entirely possible to pick an unsecured funding option.

  • The industry is loosely regulated
    Much of the flexibility and speed of alt-lending institutions stem from the fact that the capital is provided by individual investors and not by banking institutions. This reduces the amount of regulation on the industry, making it easier for lending companies such as Mantis Funding to balance their business between high-risk and low-risk companies.

The benefits of alternative financing are beyond doubt – the system has been tested for more than a decade and has proven to be effective for small businesses as well as for investors. Business owners have seen and experienced these advantages first hand and are now loyal alt-fin clients who automatically equate financing with alt-fin – not the banks!

The Right Kind Of Funding To Realize Your Business Goals

Mantis funding in New York states that small businesses need external funding to hire staff, as working capital, to expand, to buy machinery or even to refinance old existing debt. Read on to discover more in-depth as to the reasons funding is required.

Working Capital

Sometimes having sufficient working capital to get going and keep operations active is essential. Working capital will have a positive effect on your company’s financial health. Many entrepreneurs choose to take extra funding to expand their business or fulfill their growth goals. Mantis funding can provide the necessary finances to take care of short term requirements, help in acquiring something new or even bridge the gap between payments and customer orders.

Companies can also take advantage of the extra cash to act as a cushion for rainy days or lean days. Day to day expenses, a sudden surge in demand and low periods of productivity can benefit from this cushioning. A better-structured cash advance can also help to make monthly payments easier, shorter and lesser.

Restructuring an already existing debt is a great way to free up cash that should be spent on the business and expansion. Additional money can consolidate all the amounts borrowed and makes the cash advance more manageable and easy to track too.

Purchasing Assets

In order to grow and expand, you may be required to purchase new machinery that could really give your company’s production a positive boost. Purchasing new assets can be expensive and most often than not, cannot be bought with the cash that is already available. Mantis funding complaints deal with financial funding that is required to be paid at fixed monthly repayments with flexible cost and term.

Asset funding gives you the freedom to buy and invest in what is needed to make your vision come true. Companies use this money to buy their first vehicle, or specialized equipment or new innovative machinery that could help in better, quicker and more efficient production. Taking your business to the next level, means you need to work on increasing sales, introduce more products and services, expand the workforce, relocate and even add new geographical locations.

This is only possible if your existing business is able to take care of the day to day running operations. The additional funds can be used to expand and grow larger.

Seed Money

Seed money or startup funds can be acquired to get your business off the ground. It’s not always possible to save enough money to self- fund your business. Mantis funding customer service assists in providing small business owners with the funding they need much more easily than a traditional financial institution.

There are other ways to source external funding, from family, friends, crowdfunding, angel investors and grants. This type of funding requires a detailed business plan and the financial growth expectation before it is approved.

Funding is necessary for small businesses and obtaining it depends on the type of business, the financial projections and how well you sell your company’s’ growth potential.

Use Cash Advance to Follow an Ambitious Business Growth Plan

So you’ve done the groundwork and established a reasonably successful small business. Now you want to grow but working capital funding is a problem. Here’s how a merchant cash advance from Mantis Funding can help you in your small business growth plans.

If you’ve ever tried approaching a bank for a small funding, you know how hard it is to get approval. Banks hesitate to sanction funds for small businesses, especially those that only want a small amount. They have stringent eligibility criteria.

Your application may get rejected if you have a poor credit score, even though your business revenues are reasonably healthy. Moreover, the process of approval is time-consuming and could take weeks to months. But what do you do if you have to pay the deposit for a new storefront immediately?

How Is A Cash Advance Different?

A cash advance from Mantis Funding could be the solution to overcome the above-mentioned challenges. The company has a quick and easy process for approvals. If found to be eligible, you could get funding within a matter of days, not weeks. The company does not consider the credit score as eligibility criteria.

Instead, it looks into whether your business has been generating steady business revenues in the past and current times. As long as you can have documentation to prove this and can provide basic business information, you have a very strong chance of getting approval. The company accepts financing requests for small as well as large amounts.

How Do You Pay Back?

Once Mantis Funding reviews your application and finds that you qualify for a cash advance, it matches you with an appropriate lending option and puts forward a funding proposal. In the cash advance model, you repay from future receivables. A certain percentage is deducted from future sales.

The process continues until the entire lump sum, as well as applicable fees, are paid off. For a reasonably successful small business with strong sales figures, repayments should not be a problem. Another advantage of this model is that payments can be designed to complement revenue flow. You pay more when you have more sales or pay less when you have fewer sales.

Potential Uses of Working Capital Infusion

There are many interesting ways to use a cash advance for business growth. You can open a new storefront at a strategic location. You may use the money to implement a low-cost digital marketing campaign or a social media marketing campaign and connect with local community members.

You can also use funds to hire additional staff or buy additional inventory for the holiday season. Not only will this help you increase sales but also help you provide superior customer service. With superior customer service, you have an opportunity to convert first-time shoppers into loyal customers.

Taking cash advance from an unreliable company can lead to a can of worms. To avoid potential risks, check Mantis Funding reviews online and then fill out the application form. Once financing is approved, you can get started on the path to business growth!

How Cash Advances Can Help Solve Small Businesses Financing Challenges

While juggling multiple tasks, small business owners also need to ensure smooth cash flow and an adequate amount of working capital. Obtaining finance from traditional money lenders such as banks is not easy. Whether you need business financing at present or not, identifying alternative funding sources such as Mantis Funding and solutions such as cash advances can save you from worry and stress during an unexpected emergency.

Swift and Hassle-Free Approvals Process

Cash advances have emerged as popular solutions for small business financing challenges. Companies like Mantis Funding facilitate quick and easy cash advances for small business owners and support them when conventional money lenders simply won’t.

While banks are reluctant to sanction funds for small business owners with low credit scores, companies that offer cash advance solutions do not consider this as a critical criterion. A company like Mantis Funding considers consistent business revenue as the main factor for approving funds.

Accommodate Requests for Small and Large Amounts

Sometimes, small businesses just need a small amount to tide over an immediate cash flow crisis. Small businesses typically do not have large cash reserves and unexpected expenses can throw their accounts out of gear. Banks do not find it profitable to advance small funding and may reject the application.

Cash advances have high approval rates and there is a restriction on how much financing can be requested. Moreover, banks take a long time to process and if you need financing immediately, they’re not a good option. For cash advances, if you have the necessary documentation and agree to the terms of the contract, funds can be transferred to your bank account in just a few days.

Offer Flexible Terms of Repayment

Not only does a company like Mantis Funding review applications quickly, but it also offers flexible repayment solutions. If you apply to a bank, you will have to pay a fixed amount in installments every month. The cash advance model works differently. Here, repayments are done through a percentage of future receivables.

The percentage is usually fixed but the actual amount paid can vary, depending on future sales. This is a good solution for small seasonal businesses because their revenues oscillate in peak season and lean season. The cash advance solutions allow for adjustments until the entire advanced amount and applicable fees are paid off.

Tips to Find Reliable Service Provider

Not all companies that offer cash advances are the same. It’s important to shop around to find a reliable service provider. If you look at Mantis Funding reviews online, you’ll find that, by and large, there is positive customer feedback. The company is regarded as a trusted business financing lender offering the best solutions to small and micro-businesses.

In case of complaints, the company works with clients to find an effective resolution. With this company, you can rest assured that once your application gets approved, the funds will be transferred quickly and you can use the fresh capital infusion for any business-related purpose, whether it is maintaining payroll, buying new equipment, or adding inventory.

Save this information in your memory – you never know when you may need an alternative source of working capital funding!

Cash Advance Financing and Future Receivables to Overcome the Handicap of Poor Credit Score

Are you a small business owner with a bad credit score that needs access to working capital funding right away? Instead of wasting time on applying to a bank, consider your eligibility for a cash advance. Companies such as Mantis Funding do not consider credit score for approving business financing. Read on to learn more about this alternative working capital solution.

Cash Advance Financing Mechanism

A cash advance is a business financing solution that’s quite different from conventional business funding. In the cash advance model, you’ll receive a lump sum that’s directly credited into your business bank account. In return, you’ll commit to repaying over a period of time with a certain percentage of future receivables.

The business owner’s personal credit score is not taken into account for cash advance approval. Instead, the ability to pay back is evaluated on the basis of past and current sales. If your business is in reasonably good health and you’re witnessing a steady flow of sales and revenues, you may be eligible for a cash advance.

Quick and Easy Approvals Process

Mantis Funding is an experienced company that acts as a facilitator of cash advances. The company has contacts with cash advance lenders and reviews key business information and business documentation provided by a client. If the eligibility criteria are satisfied, the company matches the client with an appropriate cash advance funding source.

It puts forth the funding proposal to the client. The client has complete freedom to accept or reject the proposal. If the client agrees to the proposal, the cash advance is quickly transferred to their business bank account. The entire process can be completed in a few days with minimum fuss and hassle.

Fewer Restrictions and Roadblocks

Mantis Funding reviews each application on merit and does not present the roadblocks that conventional money lending sources do. For example, small business owners are free to request funding for small or large amounts of money as long as they can provide proof that they will be able to pay back with future receivables.

Banks and other traditional money lenders are not very keen about lending to small business owners and may not approve a lending for very small amounts. With the cash advance model, business owners are free to use the money for any business activity such as payroll, buying new inventory, repairing/buying new equipment, renovations, expansions, etc.

Greater Degree of Flexibility

Another advantage of cash advance funding to small business owners is the flexibility of repayment. Most cash advance funding sources accommodate flexible percentage rates and allow customers to pay a larger amount for an installment or pay a smaller amount for an installment based on sales performance. On the other hand, banks usually require repayments in fixed installments.

A small, seasonal business may struggle to fulfill this obligation during the lean season. Many business owners appreciate the cash advance solution because there is no fixed repayment schedule.

If you look at Mantis Funding reviews online, you’ll find that there are only a negligible number of complaints and the company works closely with clients to resolve them. To access cash advance funding quickly, fill out the application form provided on their website!