How Business Cash Advances Can Help Seasonal Businesses Tide over Cash Crunch Issues

Running a seasonal business is akin to riding a rollercoaster. There are ups and downs, especially with regard to cash flow. Maintaining the business in the off-season and paying for unexpected expenses can be particularly challenging, especially since it’s not easy to secure funding from banks for such businesses. Business cash advances from companies such as Mantis Funding can be an attractive alternative source of financing.

Challenges of Seasonal Businesses

Seasonal businesses are unique! They allow business owners to make maximum transactions during a certain period of the year but can experience massive falls in revenue during the off-season. Examples of seasonal businesses include landscaping, vacation rentals, sports bars, and snow removal businesses to name a few.

However, businesses still need cash flow in the off-season to cover payables which remain the same throughout the year. Smart businesses try to scale back operations during the off-peak season or try to find alternative sources of revenue. However, there may be sudden expenses that require a quick infusion of working capital.

Banks Are Not The Best Option

A business cash advance from Mantis Funding can be a reliable source of financing for small seasonal businesses that find it difficult to secure funds from conventional money lenders. Banks often have stringent criteria for approvals and take into account various factors such as personal credit score before approving.

They may also ask for collateral before granting a cash advance. Moreover, the time-consuming process of approval and a fixed schedule for repayment can be a burden on the business owner. Small seasonal businesses would find it challenging to secure and repay in such cases.

Easier Approval Process for Cash Advances

One benefit of a business cash advance is that a company like Mantis Funding reviews applications rapidly and clients do not have to wait for months to get the lump sum amount in their business bank account. When you need urgent capital infusion to cover payroll or purchase goods available at a discount, this factor can make a huge difference.

Moreover, the business owner’s credit history and history of seeking business funds are not taken into account. For business cash advance approval, factors such as the ability to pay through future receivables, business models and customer base are taken into account.

Flexible Repayment Terms

Repayment for a business cash advance is in the form of a percentage of future sales that is given to the lender on an agreed periodic basis. The repayment schedule is often flexible and you can pay back more when you have more sales or pay less when you have fewer sales.

Since there is no physical collateral involved, applicable fees may be higher and the terms of the agreement may be very strict in order to protect the lender’s interests. It’s important to read the fine print and research into companies offering business cash advances before committing to one. Mantis Funding reviews online are mostly favorable, with many satisfied customers providing positive feedback.

Don’t let cash flow woes become a roadblock to the success of your seasonal business. Get over cash crunch problems with a business cash advance!