How Merchant Cash Advance Service Is Helping In SME’s Business Growth?

The procedure of paying a lump sum amount of money in advance against an invoice is called a merchant cash advance service. Merchant cash advance service comes very handily, especially when a small or medium cap businessman requires some fast cash. This service offers quick pay-outs, thus reducing the waiting time, which is a common experience among the businessmen in a traditional funding environment.

Apart from all this, the biggest and the most significant benefit that you, as a businessman, can experience with Mantis Funding cash advance services is that it lets you receive cash against your future earnings. In this way, you will get the money in your hand whenever and wherever your business requires it the most.

What are the benefits of opting for cash advance services?

● Designed to suit and boost your business services.
● No strict requirements.
● High chances of approval.
● Less paperwork, faster service.
● Business owners can expect cash within 24 hours of approval.
● No need for staking assets as collaterals.

Working of merchant cash advance service:
Growth and cash are two basic things for any business. Many would also agree that they are co-related. How? When there is regular cash flow, there is growth and vice versa. However, in the long run of the venture, a businessman will face situations where cash flow may not be regular.

This is where you need fast cash. It is like an energy bar that gives an extra boost to halted operations. Be it a sudden need to purchase equipment or investing in some future location, Mantis Funding cash advance services have got you covered. The intriguing thing about Cash advances is the fact that you will get cash within 24-72 hours! That is, you don’t have to wait for a long time to do what’s best for your business.

How to repay the advance cash?
Merchant cash providers have designed an easy and smooth system for repayment. Firms like Mantis Funding with cash advance services provide you with the option of repaying them by a certain percent of your credit card’s daily deposit.

How do I know that I qualify for this service?
Qualifying for this type of funding is easier and faster than any other kind of traditional funding. The pre-requisites are relaxed, and the process of getting approval is super easy. Most of the funders don’t need paperwork for this process!

However, you need to maintain the past few ‘months’ bank statements so that your approval of the application is done quickly.

How to get the rate that suits my business?
This requires you to do your homework. To get the best rate, you need to have your options open and find a deal that resonates well with your business.

But before that you need to familiarize yourself with two terms:

Factor fee: Similar to the interest rate. This ranges between 1.4 and 1.8.

Holdback: In this, a certain portion of your daily credit or debit card sale is deducted from your bank to the merchant cash provider. This happens until the fund taken is repaid. The percentage lies between 10-20 percent.

As stated, cash is vital for growth. So, one should not compromise with this aspect and consult funding companies like Mantis Funding for their services. However, before coming to any decisions, the businessman should go through pages like Mantis Funding Complaints to understand what the company is all about.

Why Do Restaurant Business Owners Love Alternative Financing Deals?

The alternative financing sector is uniquely designed to serve the needs of the small business community. One can easily chalk up the rise of the whole alt-fin industry to the fact that it caters specifically to the under-financed SMEs of America.

The reason for the mutually beneficial partnership between alternative lenders and SMEs is not hard to fathom. Even though small businesses form over 99% of the American economy, they have been literally frozen out of the credit sector due to stringent guidelines and unhelpful business models of the traditional financial sector. In this barren economic landscape, alternative lenders have become founts of easy liquidity – helping many small businesses operate smoothly and expand effortlessly.

Restaurant and café owners find stable funding partners in the alternative financing sector

One of the industries that have really leveraged the various advantages of alt-finance is food and catering. According to the New York based financing company, Mantis Funding, Restaurant and café owners form the biggest group of clients approaching alt-lenders every year. Let’s understand why –

Manage Seasonality
Most businesses have well defined times of high demand, followed by troughs of lean times. Restaurants and cafes are no different. Along with seasonal demand, their revenues are also heavily dependent on location, time of the day or week, and new competitors popping up in the neighborhood.

For small business owners, an extended period of low demand can become difficult to manage – alternative lenders can be extremely helpful in these scenarios. Lenders such as Mantis Funding offer easy and quick funding deals such as merchant cash advances (MCAs) that can help restaurant and café owners to keep up with required payments while waiting for the business to pick up. They usually use MCAs for expenses such as paying salaries, utility bills, rent, insurance premiums, etc.

Expansion
If a café or a restaurant is successful, then most owners think of expansion. This could be adding more space to the existing place or moving to a new location or opening a second restaurant altogether.

Of course, any type of expansion plan must be backed by substantial investment, and as getting funding approval from banks is well neigh impossible, most restaurateurs and café owners turn to alternative lenders. Unlike the traditional banking sector, alt-lenders like Mantis Funding reviews applications based on the strength of the revenues brought in by the business.

They don’t base their entire approval process just on FICO scores; instead, they have a more robust system that uses a variety of data touchpoints (such as social media, revenue flow for the last year or quarter, pending invoices or expense tracking) for determining the creditworthiness of their clients.

Advertising And Marketing Expenses
Restaurants and cafés are heavily dependant on online reviews; almost everyone checks guest reviews and ratings before they pick a place to eat. This dominance of online reputation demands that business owners take a more proactive role in improving their position online. A sophisticated digital marketing effort costs money to set up and run, and using MCAs from alt-lenders is an excellent way to project the right online image.

The Bottom Line
Most small businesses don’t have significant liquidity needs, but they do need a leg up from time-to-time. With their easy and fast funding processes, alternative lenders are perfect credit partners for Restaurant and café owners. Whether you need a quick $2000 to pay utilities or a $200,000 to open a new restaurant – alt-lenders like Mantis Funding review applications quickly and wire money even faster.

Do get in touch with a trusted online alternative funding company to understand all your options.

Reimagining 2020 SME Economy with Fintech and Alternative Lending

It is no secret that 2020 will be the onset of a decade where the economy will primarily center around the SMEs. And this SME economy, in turn, will be heavily influenced by the alternative lending sector, which itself sees a prosperous growth through Fintech developments. In short, Fintech led alternative lending shall bring about a colossal hope for all SMEs that need accessible cash flow for refueling and business growth. Let’s delve further into this.

Understanding Key Areas

Before discussing automation, let us first understand the key operational areas for all types of lending. These include credit risk evaluation, underwriting, approval decision making, collection, servicing, documentation, etc.

These credit process elements will witness a high level of automation over the next decade. Thus, impacting the cash flow positively. Alternative lenders like Mantis Funding are already facilitating easily accessible cash flow through faster credit disbursals for small businesses.

Fintech Led Automation

Here’s how the lending process elements will see automation in 2020 and fuel the growth of the alternative lending sector.

1 – Online application system
This is already in place. By the next decade, almost every alternative lender will have an online financing application system to allow users to submit a funding request. Application forms would be customized to specific products detailing the essential documents to be uploaded. The entire process would be automated to the maximum extent possible.

2 – Risk evaluation
Traditionally, credit scores are used to evaluate the risks. But more and more alternative lenders like Mantis Funding reviews each application without weighing in credit scores. This element would witness advanced automation through artificial intelligence-led machine learning. Deep neural networks would be heavily used to collect data on applicants through non-traditional sources like accessing networks, social standing, utility bills, etc.

3 – Underwriting and decision making
The major objective of underwriting is to reduce, evaluate, and mitigate risk. With high automation, alternative lenders will be able to rely on a robust credit scoring model outside of the traditional credit scores. The seeds have already been sown. Alternative lenders like Mantis Funding review every application on the basis of their own scoring system without needing any collateral or traditional high credit scores. The system would also help loan officers make faster decisions by providing them detailed analytics and insights.

4 – Communication
The traditional method for an applicant to get in touch regarding the status of their application is to either call/email the credit officer or walk into their office. But with high automation, applicants would be able to log in to the customizable online credit processing portal and get a real-time update on the status of their application. Presently, alternative lenders like Mantis Funding are well known for their fast disbursals and active client support.

Payment alerts, credit servicing, credit updates, and digital statements are some more key areas that would get automated. With the high demand put upon the alternative lending sector, enhanced automation is undoubtedly the only way for the industry to keep growing and provide continuous customer satisfaction.