5 reasons alternative financing is the best funding solution for new businesses

Getting business funding is hard, even for healthy, well-established organizations – Most banks need at least 2 years of transaction records to prove sustained profitability, 650+ business or personal credit scores or sometimes collateral to even consider the application.

Imagine how much more difficult this becomes if you are a new business with no transactional data, profit statements, or an established business FICO score. Not meeting these eligibility criteria doesn’t mean that your business is not successful, but how do you convince banks to sign off on the risk presented by your lack of documentation? Well, you can’t!  This means that looking for money in the usual, traditional sources will be a waste of time and effort for new business owners.

Alternative lending companies are a better bet! Financing companies like Mantis Funding (which operates out of New York) are a haven for small business owners looking for liquidity to run and grow their companies. These alt-lenders offer the best solution to the capital crunch faced by new businesses.  Here’s why – 

1. Credit scores aren’t the only factor for approval

For new businesses – and also for many older established companies – the biggest hurdle for accessing funding from banks or credit unions is their less-than-pristine credit scores. A poor FICO score disqualifies them instantly. Alternative online lenders don't base their decision-making process ONLY on credit scores – it is just one of the many factors considered, which makes it easier for new businesses to qualify for funding.

For example, alt-lender Mantis Funding reviews several data points such as business revenue, personal and business transactional data, and more while processing applications.

2. Larger amounts are available through alt-lenders

If new businesses need substantial amounts, then alternative lenders are the ones they should approach. Banks might oblige with a small sum, but if a new business needs a more substantial amount, it is highly unlikely to qualify for the whole outlay.

3. There are many types of financing offers to choose from

For a fresh business, juggling challenges in different areas, flexibility is vital. With an alt-lender, they will find a wide variety of financing offers to match their situation. For example, online lenders like Mantis Funding offers start-ups options such as a business line of credit, small merchant cash advances, invoice factoring, and more – each with different repayment terms.

4. They are FAST

While not every business owner is looking for fast funding, it is certainly an added benefit! Knowing the status of your application enables entrepreneurs to plan appropriately, and this can be especially vital for new businesses, which are already dealing with uncertainty on so many sides. Top alt-lenders like Mantis Funding review, negotiate and transfer money in 1-3 business days. In urgent cases, they can even manage the whole process in 24 hours.

5.  Alt-lenders offer competitive rates

With lots of negotiating room, business owners can be sure of finding the best rates in the industry with alternative financing institutions. While their base offers are competitive to start with, they do adjust the rates to suit business requirements.

Things are tough enough for new businesses, why add financing woes to the mix? A new venture is usually in a state of flux for at least the first year or so, and alternative lenders allow entrepreneurs lots of flexibility to go with the flow.

From keeping the operations ticking while revenue kicks into unlocking new areas of expansion – at every step of their operations, access to cash can help entrepreneurs concentrate on running their business and stop worrying about finding funds.

How Technology and Ecommerce Are Changing The Face Of Small Businesses

Like everything else, the face is always changing too. External factors such as public policies, marketing, technology and funding from companies like Mantis funding can influence and affect business operations.

Personalized Marketing and E-commerce

The customer is now at the center of most businesses and more and more businesses are thinking of innovative and engaging ways to attract the customer. Different marketing campaigns are customized keeping in mind the target audience. Companies create campaigns that target an individual and their past purchasing history to get more sales. 

This mass personalization keeps the customer loyal and develops a relationship with the business. Thanks to social media, influencer marketing, comments, reviews, and testimonials play a huge part in building up a business or bringing it down. Mantis funding in New York is always on the lookout for small businesses that give the customer online convenience with an offline experience.

Business collaboration and Payment Tracking

Financial institutions, banks, and insurance companies are more open to collaborations and partnerships with small businesses. These partnerships enable companies that share a common market, target audience or goals to work together for mutual benefit. Financial institutions like Mantis funding customer service, are also willing to pitch in with ideas, suggestions, and plans that will help in weaker areas.

The rise of technology has also made tracking payments through a bank account an extremely simple process. Payment links can be sent to the customer by WhatsApp, email or a message. The transaction processes also support common methods of payment such as NEFT, Credit cards, and net banking.

Simpler Online Lending 

While funding is necessary, obtaining one can be quite cumbersome, involving a lot of paperwork. It is one of the main challenges that is faced by small businesses. New lending services have tried to solve most of these problems by going online and simplifying the entire process. Funding can be approved in a matter of days even with a low credit score.

The limit of the cash advance amount and the payback schedule will be customized according to the customers’ earnings and past transactions. Professional lenders such as Mantis funding also deal with complaints, through an online system, in a prompt and personalized manner.

Online lending services can be accessed from any device and from anywhere, making it both convenient and simple. Traditional lending organizations are also finding their way into using innovative technology to partner with small businesses.

Employee Work Options

Employee productivity can be affected by everyday issues such as bad roads and therefore providing work options can greatly change the results too. Work from home, co-working, flexibility are some game-changers that businesses are incorporating. These policies don’t just increase productivity and employee satisfaction but they also help to save on costs for the company. It also helps in lowering attrition rates and holding on to good talent.

Businesses are now looking to introduce AI to rise above the competition and bridge the various other challenges that are faced by customers.

Are Cash Advance Solutions Appropriate For Beauty Salons?

Any beauty salon owner will tell you that running the business comes with constant financial challenges along the way. Like other small business owners, salon owners find it difficult to source business financing from traditional money lenders. For beauty salons and other small businesses, cash advances from reliable companies such as Mantis Funding are becoming an increasingly popular alternative source of financing.

Need for Working Capital

There is cut-throat competition in the beauty salon industry. Salons need to be up-to-date with the latest beauty trends and adopt the latest innovations to stay ahead of the curve. At the same time, they need to have enough stocks of beauty products as well as trained staff to provide exemplary customer service. Nowadays, salons are also selling beauty products as a way to augment income from salon or spa services. All this requires a smooth flow of working capital funds.

Problem with Banks

Banks and other conventional money lenders often turn down business funding requests by small business owners for various reasons including poor personal credit score. They also take a long time to sanction the same. So who does a beauty salon owner turn to for quick and hassle-free working capital funding?

The answer could possibly lie in merchant cash advance, an attractive solution for businesses that witness a steady stream of business and sales. Beauty salons definitely qualify for a cash advance based on these two criteria.

Approvals Based on Business Sales

Mantis Funding is a company that specializes in sourcing merchant cash advance for all types of small businesses, including beauty salons and spas. For cash advances, approval depends on proof of consistent past and present sales, not your credit score.

If you’re an established business and have been operating for at least a few months, you could get funding within a few days. In return, you agree to pay back a percentage from future receivables. Here too there’s flexibility because repayments are designed to mirror revenue flow.

Understand What You’re Getting Into

The professional staff at Mantis Funding reviews each application carefully and if it deems the client to qualify, provides the client with an appropriate funding option. The company puts forth the funding proposal which a client should review before agreeing to it.

One thing to remember is that cash advance is a type of business financing which is quite different from that obtained from a bank. The costs and repayment structure of cash advances are different from banks too. Contracts often contain unfamiliar terms, so it’s important to educate yourself before making a commitment.

Research Service Provider

Once you agree to the terms of the cash advance contract, advanced funds are quickly transferred into your business bank account. Another thing to remember is that the cash advance industry is not controlled by federal regulations. There are a number of service providers who try to cheat desperate clients. The good news is that online Mantis Funding reviews are largely favorable, so you can feel reassured while partnering with this company.

Don’t let lack of working capital funding hold you back from owning a successful beauty salon business. Apply for a cash advance and get the financing you need to grow!