Can SMEs Maintain a Smooth Working Capital with the help of Cash Advance? Read to Know

Change is the nature of our world and we have to accept it. Perhaps, this is the reason why the financing industry is changing despite constant skepticism from the economic experts. The arrival and rise of the alternative financing industry is a testament to the change that we are talking about.

Who would have thought about this? 2026 is the year that will see this industry in cruise control. Maybe their dominance can start a little early, given the current scenario. Besides, taking lessons from the Great Recession of 2008, it is easy to predict that traditional channels are going to tighten their rules and regulations to prevent the repeat of their catastrophic financial disaster.

This might not sound good for small and medium businesses; but, the fact that the market is embraced with the presence of alternative financing firms like Mantis Funding, SMEs, for the first time, are in safe hands. Irrespective of time, these alt-fin firms have helped SMEs with funds and help them to grow. 

With their lucrative deals, they ensure that their clients are satisfied. Apart from that, they ensure flexible terms and conditions with customized repayment modes, which don’t put burden on the consumer’s pocket. Fast processing is also one thing that makes them better than others. It barely takes 5 days to process funds for an application. In case the approaching client requests them for an urgent set-up, they oblige the same and prepare online funding within 24 hours!

How Cash Advance can really help?

Despite being one of the most popular choices among the alt-funding sector, there are still some misconceptions about what cash advance actually is.

No matter what the size of the business, a cash advance is the lump sum amount that the alt-fin company provides, in advance, for an exchange of future earning or a percentage of sales of debit or credit cards.

A Cash Advance is the fastest funding that a consumer can ask for. The alternative financing firms like Mantis Funding concentrate on making the application procedure easier and faster. With an AI/ML backed system, they ensure that criterias like transaction history, expenditure patterns, revenue stream, social media behavior, and some more related things are processed and verified quickly.  This provides them with a score of Debt Service Coverage Ratio(DSCR) which states whether the applicant is trustworthy or not.

Besides, firms like Mantis Funding reviews an application with a holistic method. This method helps them to understand the dilemma the consumer is facing. And, this lays the foundation of customized deals that come with flexible cost structures and increased working capital helping an SME owner to grow and expand.

How to Go About Finding the Right Firm?

It’s kind of tricky to find the right firm that matches your ideology, especially in a market which is covered with imposters. Trust is the biggest driving force but who to give it is a question. Hence, the best way to go about this is by opting to look at reviews. 

Platforms like Yelp, MantisFunding reviews, Google Reviews, etc, can really help in gaining an idea regarding the credibility of the firm. Besides, you can contact your peers who have worked or partnered with different firms to support their business. 

Going with gut feeling and word-of-mouth is great but you cannot trust your finances with anyone and everyone. This is why it is best for you to take insights from others and look for well-established firms like Mantis Funding who can really guide you through your problems with effective strategies.

How SMEs Benefit From Equipment Leasing?

Equipment leasing is a fantastic tool for businessmen with small or medium cap businesses.

Equipment leasing is another form of alternative funding in which a businessman receives funds for special equipment that is required for the growth of their business. However, this form of financing only focuses on the cash required for the equipment; not on the expenses that a businessman can incur in their business.

Moreover, this kind of financing differs from funder to funder with the range for funds can be anywhere between $25,000 and $2 million. The terms also differ with funders, making it necessary for the businessmen to go through all the terms and conditions thoroughly. Despite that, online alternative funding offers quite flexible terms. Funders like Mantis Funding are flexible in their approach and design their equipment leasing as per clients' requirements.

What are the advantages of opting for equipment leasing?

Needing expensive equipment and facing a liquidity crunch at the same time can be a tough situation. In such times, what will a businessman do? Will he stop the venture's growth, or will he look for options that can be beneficial for the future of the firm?

Of course, the second option makes more sense over the first one. Perhaps, equipment leasing at this point is the best solution for the firm. In this way, the businessman will not only keep the cost down but also will be able to get the equipment without tinkering the cash flow of the firm. What's more, is that the firm will be in the league of its competitors. Nevertheless, knowing the requirement before leasing on equipment could do wonders for a businessman's profits.

Apart from all this, as per Mantis Funding, the biggest advantage of equipment leasing is that a businessman will be able to plan the monthly payouts, for the equipment, which is kind of affordable in comparison to buying the equipment or financing it. Moreover, due to fixed financing rates, he will experience the transparency that he desires.

Tax benefits, conserving the capital and, getting access to the tool without even waiting for a long time are some of the benefits that equipment leasing can provide.

Things to consider before opting for equipment leasing 

Though there are many benefits of equipment leasing; one should remember that benefits can be reaped only when a businessman understands that leasing is entirely personal and unique depending upon the circumstances. 

Further, it is very crucial to partner with the right funder. It is also advisable for a businessman to go through the pages like Mantis Funding reviews to get a fair idea of how the firm operates. Also, having a clear understanding of leasing agreement and scrutinizing all the options before reaching any decision plays into the hands of the businessman. 

Whenever possible, always opt for a closed-end lease after deciding on the lease. Having a closed-end lease means that when the lease period is over, the businessman will hand back the equipment and will be free from all the repayment duties. 

Nonetheless, whether a businessman will opt for a closed-end lease or not is entirely up to the circumstances he/she is in. However, when opting for different open-end lease, make sure whether there is a clause for additional charges on the wear and tear of the equipment.