For small businesses in America, cash advances are a useful working capital financing tool that can help avert crises and open doors to opportunities. Given below are some situations when the services of working capital funding companies like Mantis Funding can be a life-saver to micro or small businesses.
Purchase New Inventory
If you’re in the business of selling physical inventory, there are bound to be times when you’ll need extra working capital to purchase fresh inventory either to overcome shortages or prepare for busy seasons such as the holiday season. Without an adequate amount of inventory, you could end up losing out on sales during a profit-making period. By using working capital solutions by Mantis Funding, businesses can make sure they have enough inventory to meet consumer demand.
Cover Unexpected Expenses
There may be sudden, unexpected circumstances that require a quick infusion of working capital. For example, you may have an opportunity to purchase inventory at attractive discounted prices. You may experience equipment breakdown and have to repair or purchase new equipment to keep your business running. Mantis Funding reviews your application quickly and you can get your cash advance within a few hours or just a couple of days if everything is in order.
Meet Payroll Obligations
Sometimes, you may face the situation of having to miss payroll. If you know you’re going to miss payroll, you should act quickly to make working capital arrangements so that you won’t have to face potential risks such as lawsuits and tax liabilities. A traditional money lender may not be as understanding of your challenging circumstances– but Mantis Funding can be.
When providing working capital solutions to customers, there is no restriction on how the cash advance will be used. All that is considered is your ability to pay back the cash advance in a phased manner.
Overcome Cash Flow Shortages
Small businesses often face cash flow system problems due to a lack of a proper accounts receivable system. If you find that your business is short of working capital because your customers have not paid you, Mantis Funding can provide a cash advance to cover expenses in the interim period.
If you’re considering renovating business premises, you may find that traditional money lenders may not be excited about lending a small amount such as a few thousand dollars. There are no such restrictions when you are applying for a cash advance.
Obtain Financing Even if You Have Bad Credit Score
A traditional bank may reject your application if you have bad credit ratings even if your business is profitable. Mantis Funding reviews each application based on proof of consistent business revenue in the past and current times. It does not take credit rating into consideration.
The method of repayment for a merchant cash advance is also different – you will have to pay a percentage of revenues coming from sales on a periodic basis which allows you to pay back at the pace of your sales.
If you are faced with any one of the above-mentioned circumstances, you may consider merchant cash advance as a suitable working capital funding solution!