All You Need To Know About Franchisee Financing With Alternative Lenders

Running a business under the protection of a well-known brand is a great way to make good profits. With a franchisee, you have the backing of an established marketing ecosystem, a recognized product, and a readymade customer base.

But along with all the advantages of working with a franchisor, you also have to manage many challenges. The biggest of these challenges is financial in nature. Purchasing a franchise is a substantial cost, but it is not the only one. Let’s delve further.

You need to put a lot of upfront investment on the table – While you might be able to make changes to cut costs with your own business, in a franchisee, you have to stick to certain minimum requirements. From the store décor to manufacturing or operating procedures to staff training, there is a fixed way of doing things with a franchisee. All of this can become quite costly in the long run.

Cash flow problems – Discounts, prepayments, and excess inventory can lead to cash flow problems. In order to attract new customers, many new franchisee owners offer additional discounts and deals – these obviously dent their own profits and can lead to such severe cash flow issues that meeting even the most urgent operating costs can become tough. In some cases, they also tend to overstock on good deals. While this is a good idea, in the long run, it does put current finances under stress.

Additional advertising and similar business costs – Many franchisee owners also have to invest out of their pockets on enhanced advertising, especially in the local area. This becomes critical for drumming up business, particularly for new franchisees or ones in very competitive localities. Extensive marketing efforts also require funds, which must come out from the profits of the owner.

How Do Franchise Owners Manage These Financial Challenges?

Most banks require an exhaustive amount of paperwork with the application and take a long time to share their approval decisions. And the truth is that first time and single-unit franchise owners are highly unlikely to qualify for a traditional banking offer even when their paperwork and FICO score are perfect. All this has turned franchise owners away from banks and towards alt-lenders such as Mantis Funding, which deliver super-fast funding at highly competitive costs.

How Alternative Finance Companies Help Franchise Owners?

Alternative lenders do away with all the bottlenecks that crop up while dealing with the traditional banking sector.

Fast approval and processing times – The waiting is reduced to just a few days! Where earlier a franchise owner might have had to wait for a few weeks just to know the status of their application, now they can get the money in their bank in less than 2 business days! Some lenders like Mantis Funding review and approve applications for smaller amounts in less than 24 hours!

Easy approvals – Another big advantage of alt-lenders is the fact that they have delinked their approval process from FICO scores. Credit scores still form a part of their risk assessment process but are not a deal-breaker, as is usually the case with traditional lenders. This means that franchise owners can get funded despite having a less-than-perfect credit score; the transactional and revenue data of the business matters more.

Customized offers – Along with the other vital points, such as speed and ease of funding, alternative lenders are also very popular because they offer a lot of scope for personalization. For example, Mantis Funding provides cash advances to tide over off-season cash flow problems as well as amounts over $200,000 in the form of a business line of credit. The business owner can choose the amount, negotiate better terms, and opt for the type of service that suits their needs best.

Are you operating a franchisee? Do write to us about your experience with cash flow problems and the solutions that worked for you.

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 to understand what the company is all about.

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.

How to Raise Capital for Business Amplification?

Finding funds to expand a business venture is an arduous task for any entrepreneur. Funds play a very crucial part in the growth of any business and a pre-requisite for any business to sustain and grow while acing ahead of competition..

With the increasing resistance from banks to offer credit, there are countless more funding options like Mantis Funding available in the market, which was not the case in the past. Nevertheless, with the plethora of financial opportunities available to small businessmen, it becomes quite challenging to decide which option works well for the needs of the businessmen.

Raising Money By Yourself

Many entrepreneurs are quite headstrong and are ready to finance their business all by themselves. They will breeze past banks, sell their possessions, save money from their day job, and invest in various sectors; by doing all this, they can gather the required amount for diversification. Moreover, doing it all alone, one can gain complete control and be unburdened of the interest and strain from other avenues.

Seeking Venture Capital

This is also a good way of fetching capital for a start-up business. Searching for a venture capitalist, who believes in your ability to turn an idea into a profitable venture, is a good way of raising cash. However, this idea only works when you have a business model that is fine-tuned and is up to the scale of the investor. Moreover, the biggest problem in gaining this fund is that the capitalist is constantly looking for the next big thing in the market; hence, an entrepreneur might have issues matching the scale-ability of their enterprise.

Look For Micro-Financing Firms

Small scale businessmen ditch banks and other options so that they can get quick access to capital with the help of micro-financing firms like Mantis Funding. This is a wise option for the people who seek immediate financing solutions and have to take quick decisions for reaping maximum benefits from growing their enterprise.

These firms promote financial inclusion and cater to the financial needs of entrepreneurs with pressing needs. Taking a cash advance from companies like Mantis Funding not only helps in gaining money but also ensures that as an entrepreneur, you are getting valuable guidance and mentorship on how you should regulate the flow of cash in your company.

Family And Friends

Asking your family and friends to raise money for your venture can also be a good idea. One can solicit funds for short and long term from friends and family might lead to a little dispute down the line, but the advantage of this is that you don’t have to pay interest to them for the fund. This is a faster process and an easier one as well; further, it comes with flexible payback options. The drawback though, is that there is no clear understanding of the venture’s plan and its execution while the give and take of funds.

Before choosing an option, one should educate them about what they are opting for. When going for microbusiness firms, one should always have proper knowledge of their guidelines and look for reviews like that of Mantis Funding Reviews for their clear understanding.

How To Manage Your Small Business’ Working Capital With A Quick Cash Advance

Whenever a small or medium-scale businessmen find out that traditional sources of financing are no more helpful, it is none other than alternative financing that comes up as a savior. Renowned alternative lending companies like Mantis Funding offer lucrative funding deals keeping the requirements of small business owners in their minds.

All you need to do is simply apply for the required funds through online mode and give answers to some general questions about your business. If qualified, the funds will be transferred to your business account against your overall sales. So basically, you just have to ensure that the volume of sales is adequate enough to pay back the debt.

The best part of alternative or non-bank funding is that as soon as your application for funds is approved, you get the money in a lump sum in as quick as 24 hours and are free to spend it as you like for your business expansion! The period of such cash advance is generally short termed the repayment can be started right from the next week or month depending on your sales.

Advantages of Merchant Cash Advance

While traditional lending institutions like banks take ages to go through the application, crosscheck business models, verify financial statements, alternative lenders like Mantis Funding aim at making the application to fund transfer as fast as possible. In fact, unlike banks, alt-financing companies do not care about your credit history or credit score for approving your applications.

Rather they take into consideration other vital factors such as your business model, the revenue stream of your business, expenditure patterns, social media behavior, etc. to judge your creditworthiness. SME owners also prefer these companies over traditional lenders as companies like Mantis Funding Review each application with a broader perspective and offer customized deals and flexible cost structures that suit the nature of their business.

This is one of the most convenient and speedy ways to get access to cash for the growth and expansion of your business.

Finding the best alt-lending company

With a high level of competition even in the alternative lending industry, it might become tricky to choose one trustworthy and honest company. Since there is a lack of regulations and intervention by the government, there might be chances that you get cheated or get charged excessively without your consent through complex contracts.

Thus, the best way to find the most suitable company for your funding requirements is by looking up for reviews. For example, if you check out the Mantis Funding Reviews you will get to know how customer-centric the entire team of professionals is. You will also get to know about the experiences that previous customers have had with the company and how long did the representatives take to resolve any issue.

All these factors help you decide which alternative lending company can be best for you. After all, no businessman would ever like to get trapped in a contract that might be impossible to get out of.

How To Find Business Funding At The Best Rates?

For small businesses, every dollar counts! This is why all entrepreneurs are so careful about signing up on financing deals – a good rate can result in substantial savings, whereas a bad one can impact the long-term health of the company.

While banks might offer stable and competitive financing deals, they are virtually inaccessible for small businesses, especially if the business has a poor credit rating or a shaky financial history. Their business model and risk-averse corporate mindset make them favor larger and more stable companies, leaving small businesses frozen out of the credit market.

But, the last decade has seen the alternative financing industry ride to the rescue of the small business community – offering flexible, fair, and fast funding to SMEs across America.

However, the alternative lending industry in the US is HUGE – the total transaction value in the sector amounts to US$32,539.0m in 2019 – spread over 1,687 thousand customers. The industry is split across thousands of companies offering a vast range of financing deals. To find the best deal amongst the various alt-lenders, you must keep some things in mind –

Starting point – the search begins with you! You must first arrive at a clear idea of your requirements before you start approaching alt-lender.

Find the most reputable lender – ask around in the market to find trustworthy, long-standing companies in the alt-lending ecosystem. You want a lender who offers not only the cheapest terms but also someone who will support you through the process, provide excellent customer services and can be counted on to help in times of stress. A good example of this is the New York-based Mantis Funding, which has excellent online Mantis Funding reviews and word-of-mouth reputation.

Find funding options that suit your situation – different lenders have different offers, which means, for example, that the terms of a merchant cash advance with one lender could be different from another. The only way to find a suitable offer is to check with the reputable companies on your list. You must also remember to check the terms and rates attached to each offer.

Finding the right-fit offer ensures you only stay in debt for a minimum period of time – thus reducing the financial burden of repayment costs on your business.

Find out what is needed to complete the formalities – do you need to provide collateral, do you need a specific minimum credit score or transaction history? Which documents are mandatory? All these questions are vital to get the complete picture. A lender might advertise a smaller APR, but this might not apply to the type of funding you need, or it might have some particular condition attached to it.

Understanding ALL the details will ensure you don’t waste time applying to lenders whose final offering ends up being more expensive than what you originally planned for.

Check for predatory practices – do read the fine print to weed out malicious players. Some of these would try to trick you with undeclared fees, use balloon payments to make loan rates look smaller, or ask for extra charges at the last moment.

Look for signs in online reviews as these are a good judge of a company’s reputation. For example, Mantis Funding reviews paint a fair picture of the company’s reputation across all online forums. This is impossible to fake!

Negotiate – Always negotiate hard! Many alt-lenders, once they have approved you, will want to bring in a reputable new client. And many are willing to offer more comfortable terms to keep your business.

Even a little bit of relaxation in repayment costs or timelines can make a big difference for a small business. So, do give it a shot!

The Bottom Line: The fact is that even in the alternate financing sector, better credit history and strong financials will result in a better rate. BUT, lower rates are still possible without good FICO scores or collaterals. You just have to look harder and bargain smarter.

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 deals 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.

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!

A Business Dilemma

Let us consider a small business, say a daycare and the potential financial risks that might arise in the ordinary course of business. The owner markets the business in the village’s community center and within no time the business had the maximum number of children it can take. The business also involves taking all the children on little trips like to the zoo or a children’s museum.

The business has a car that can handle the number of children involved, and also have the required car seats for the children to make it easier for the parents. All of this is included in the fees charged. But then the state authority decided that different car seats were required for younger children. Now the business is in a dilemma. This is where companies offering Mantis funding cash advances and equipped with a platform to address Mantis funding complaints play a significant role.

Who Is To Pay The Required Costs?

When these parents signed up with the business, the deal was that the required car seats would be supplied by the business so as to make things easier for the parents and give them one less thing to worry about. But this new regulation would increase the costs and the business would have to get the new car seats quickly in order to comply.

The business cannot pass the cost on to the parents as it is a one-time expense that was included in the fee. The problem, however, is that owner is now in need of immediate access to cash so as to purchase the number of seats needed, and the business has to have additional seats for new clients. In this situation, it is difficult for one to find the funds for this one-time expense and this is exactly where a company providing Mantis funding cash advance can help.

The Solution To Quick Cash Crunches

What a business needs, is a small cash advance and a company offering Mantis funding cash advance would give just that. The company providing Mantis funding cash advance reviews the revenue stream, business model, customer pool and other factors and uses that information to determine how much capital advance they could offer the business at flexible cost structures.

If both parties agree to those terms, then a flexible repayment plan is worked out. Once the contracts are signed, within hours the Mantis funding cash advance is transferred to the borrower’s account and the dilemma is solved.

Platform For Addressing Grievances

If the client wants to know what type of customer service a company offers prior to signing the contract, it is advisable that they make sure to look up the Mantis funding complaints prior to reaching out to a capital funding company.

Mantis funding the customer department helps the client solve any issue regarding the advancing of the required funds. Thus, every company providing such advances should have a provision for it just like Mantis funding complaints on its website or in the offices.