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 LLC, 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.

Getting Funding for a New Supplier Is Not Always Easy

Every business, large or small, that sells a product must have a supplier for that product. When you contract with the supplier you agree on the terms. It could be regular deliveries of a specific amount of product or it could be an on-demand situation where you order the product as you need it.

Regardless of the arrangement, you have made you need your supplier. One of the worst things that can happen, particularly for a new small business, is for their supplier to close its doors.

If it is a common product sold by many vendors your problem is simply finding the one that can give you the best terms. If you have a specialty shop finding a new supplier is more challenging. Regardless of which type of vendor you need one thing is for sure, the terms will be different, probably priced higher, and you will need them fast.

You may also need a small loan to replenish your inventory quickly before you had intended to because you have to ensure the new supplier is as reliable as the previous one was. But where do you get the funds?

Can You Go to the Bank?
Banks loan money. That is a part of their business model. But banks don’t loan money to just anyone and they have strict requirements for loan approval. They also may not wish to loan the small number of funds you need and may question why you hadn’t set aside funds for this type of situation. In other words, you may not meet their requirements and you may simply be turned down for the loan.

Your problem is that you don’t have the time to apply, get reviewed then get turned down. This is where capital funding companies like Mantis Funding come in. They deal only with micro or small businesses and understand the challenges that these businesses face. When you contact them for a Mantis Funding cash advance, they get to work immediately.

What Do They Do a Bank Doesn’t?
Mantis Funding reviews your business, not your credit score. They look at your revenue stream, your product, and your customer base. They do not exist to simply pass out cash, they have to ensure that your business model is viable and that you handle the revenue from it responsibly.

Once they decide that you are a good risk they work with you to determine payment terms that you can meet. They also offer flexible repayment plans that can be handled in different ways.

Once you agree on repayment terms and sign the contracts, within hours the funds you need are in your bank. The rest is up to you. Just take the time to research any capital funding company you consider so you know you will get the type of money you need with a company you like. For example, by looking up Mantis Funding complaints, you can see how they have worked with people in the past when a problem arose.

How New Regulations Can Lead Small Businesses to Need a Capital Funding Company

When you decided to open a home daycare business, you did it because you understand how difficult it is for parents to find reliable and decent people to watch their children. Now that yours are out of the house, you decided this would be the perfect business for you.

Your home is already set up for children and you raised your own. They turned out fine and you love kids. You also realized that you can charge a rate that families can afford.

You marketed your business in places like your church and your village’s community center and within no time you had the maximum number of children you would take. You want to be sure they could all get the attention they need and that you could handle.

You also like to take the children on little trips like to the zoo or a children’s museum, with parental consent of course.

You have a car that can handle the number of children you watch, and you also have the required car seats for the children to make it easier on the parents. All of this is included in the fees you charge. But then your state decided that different car seats were required for younger children. Now you have a dilemma.

Pass the Cost On or Cover It Yourself?
When these parents signed up with you part of the deal was that you supplied the car seats. It makes it easier for the parents and also for you because you can leave them set up in your car. But this new regulation would increase your costs and you have to get the new car seats quickly in order to comply.

If you pass the cost on to the parents, it would be difficult to do because it is a one-time expense and it was included in your fee. The problem is you don’t have sufficient cash on hand to purchase the number of seats you need, and you have to have additional seats for new clients as the children age and no longer need your services.

How can you find the funds for this one-time expense? Here is where a company similar to Mantis Funding can help.

Capital Funding Companies.
What you need is a small loan and a Mantis Funding cash advance would give you just that. Mantis Funding reviews your revenue stream and other factors and uses that information to determine how much they could offer you and at what interest rate. If you both agree on those terms, they will then work out a flexible repayment plan.

Once the contracts are signed, within hours the funds can be in your account and your dilemma is solved. If you want to know what type of customer service a company offers prior to signing your contract, make sure you look up something like Mantis Funding complaints prior to reaching out to a capital funding company.

My Worries Are Over Because I Found Small Business Funding

Many small businesses are now turning to capital funding companies when they need small loans to get through a rough time. It used to be the case that if you need a loan you could only go to a bank.

If you were a small or micro business that hadn’t been established for a long period of time, the loan application was turned down. In those days, small businesses turned to family or friends for help. Sometimes they could, but many times they couldn’t.

This frequently led to the demise of the business. Sometimes the owner would save up their money and start again, but many would not. Their dream had ended.

These days, small businesses don’t have to depend on banks. Capital funding companies can save the day. Capital funding companies like Mantis Funding specialize in helping micro and small businesses. Unlike banks, they are willing to fund businesses that haven’t been in business for years, may not have perfect credit and don’t look at other requirements a bank demands.

This is what allows Mantis Funding cash advances go through. But make no mistake, no capital funding company just passes out cash.

What Kind of Requirements Can There Be?
Capital funding companies look at all of the aspects of your business. You must have a product that is in demand. If all you do is sell Christmas trees and only at Christmas, you probably won’t have a revenue stream that will support the loan repayment, depending on when and why you need the loan.

For example, Mantis Funding reviews your business model. What are you offering? Is it sustainable? Can it be expanded or can similar services or products be offered in the future, which would allow the business to grow?

How is your revenue stream – static, fluctuating, growing? What do you do with the money you make? Businesses that have a strong or growing customer base and offer a product or service that is in demand have a good start at meeting the requirements. If their revenue stream has grown since the company started, even if it grew slowly, it shows that the business is offering something people want.

When they look at what the owner does with the revenue and find it is reinvested in the business, that is another sign that the business owner is a good risk. The priorities placed on the distribution of revenue is important. Is it used to increase the inventory of the best selling product?

Is it spent hiring an employee to take on additional services or has the business model added web content to the original model of only website development? This is all a reflection on the owner and how the owner manages the business.

What if I Have a Problem with the Funding Company?
If you have a problem with the funding company don’t hesitate to voice it. Since some of the flexible repayment options involve the business’ payment processor, many times the problem lies there. Mantis Funding complaints are taken quite seriously.

They will work with you to get to the bottom of the problem, find the cause, find a solution and put in place controls to ensure there is no repeat of the problem.