No wonder we are blessed to be witnessing this generation. As things stand, we are seeing the collaboration of digitalization and globalization. Two things that are defining generation in their own terms.
Perhaps, the finance industry has witnessed the biggest impact of this collaboration. There is no hiding the fact that this industry needed some innovation, especially after the devastating recession. The effects brought by the financial havoc in 2008-10 saw the change of policies within the traditional channels. They tightened their grips on their regulations, making things tougher for small and medium business owners.
Thus, started the search for inventive funding solutions that were flexible and accessible. Hence laying the foundation stone of firms like Mantis Funding touched points like quickening the processing speed, providing easy approvals, and devising new methods to measure the businessman’s credit history.
As the case may be, this decade belonged to alt-fin firms. Firms like Mantis Funding have emerged onto the scene and are a dependable option for SME owners, who are looking for quick funds.
Despite all this, many questions still perplex a new owner about the unprecedented rise of these firms. In this article, we will cover all the possible reasons that contributed to the rise in the numbers of these firms.
Reason 1: Traditional channel’s reluctance paved way for these firms
As mentioned, the traditional channels narrowed their criteria for providing funds. In doing so, they provided a platform to alt-financers like Mantis Funding to fill the void created by them. For SME owners, these alt-lenders were no less than superheroes. Unlike traditional channels, they never demanded you to maintain high credit scores or provide substantial collateral. Instead, they dig into your past bank records, and many such things to approve your application. Intending to assist SMEs in their growth, these firms have well and truly filled the gap created by the traditional channels.
Reason 2: They understand that opportunity doesn’t knock twice
For over a while, there has been a constant complaint of SME owners about the lethargic and time-taking fund’s disbursal of the traditional channels. If an owner is lucky enough to get his application approve within time, all these channels will do it to make him wait until the opportunity withers away. And, this didn’t help the case of many growth-seeking SMEs.
This is where alt-fin firms lifted their game. They were quick to realize that opportunities don’t wait for funder’s approval. In an ever-changing market, they designed their policies in such a way that an SME owner didn’t have to wait for more than two days for the funds. And, in some urgent cases, this duration reduces to 24 hours!
Reason 3: Smart work over extensive documentation
The introduction of AI/ML in the alt-fin sector is nothing sort of a blessing. This step has helped them to edge their traditional counterparts. Further with the renewed application and reviewing process, this financing sector has seen a rise in alt-fin firm’s credibility and popularity. With the help of a system that is backed by AI/ML, firms have shortened their application time. And, many like Mantis Funding reviews the application faster because of the same reason. Thus, removing the hassle to scribble pen over multiple papers for a process which can be done in a few hours.
Besides these mentioned reasons, there are many reasons as to why these firms have gained this level of trust. The fact that these firms are upgrading their level of service and technology with the needs of the market is credible and is also one of the reasons for their success.