Help From Finance Companies To Shore Up Working Capital

1. Help From Finance Companies To Shore Up Working Capital

2. A flourishing small business entrepreneur is always looking for ways to expand and increase his business revenue. In order to do this, he needs to invest in machinery if he is a manufacturer or in inventory if he is in sales. The working capital that is required for new investments comes from the difference between his current assets and liabilities.

3. Current assets such as inventory and accounts receivable can be easily converted into cash. Their short term debts and accounts payable are what constitute their current liabilities. Working capital is different from long term capital or equity in that it is used to finance growth in their current assets.

4. Equity, on the other hand, is needed to finance long term expenses. Finance companies such as Mantis Funding LLC help business owners to shore up their working capital needs.

5. Quick Clearance Of Business Funds From Mantis Funding It is difficult for small companies and businesses to get credit from banks and traditional money lenders. This is because these institutions look at credit scores and the credit history of their clients. However, business finance lenders such as Mantis Funding LLC only look at past and current business revenue to evaluate the capacity of the borrower to pay back the funds.

6. There is minimal documentation and once that is cleared, the offer of financial aid is made. If the offer is accepted, then the advance is made directly into the business bank account in exchange for a certain percentage of the account receivables.

7. Small business owners go in for cash advances because repayment is fairly flexible and based on your turnover for the day. You also only need to take the amount of money that is required for your cash flow needs.

8. Benefits Of Sufficient Working Capital Working capital is so important because the survival of the company depends on its availability. If funds are taken to increase working capital without sufficient income to offset it, it may lead to bankruptcy and closure of the business. If the management is not able to run the business well and there is low or negative working capital, it could lead to investors keeping away from such businesses.

9. This, in turn, could lead to lost opportunities for growth and expansion. Suppliers also tend to favor businesses with greater working capital and often provide them with trade discounts. They are usually unwilling to do so with customers who do not make payments on time. This can have a negative impact on the business as the cost of inventory increases when there are no discounts offered.

10. Financial companies such as Mantis Funding in West Palm Beach ensure there is no time lost in providing funds. The repayment is based on daily sales, so there is less stress in paying back funds.

11. Survival Of Businesses With Merchant Cash Advances Merchant cash advances provided by financial lenders such as Mantis Funding in West Palm Beach is essential for small businesses to survive. Funds are difficult to get from traditional lenders without a proper credit score or collaterals which small businesses normally do not possess. Merchant cash advances are given almost immediately as a lump sum into the business account of the borrower.

12. Businessmen seek financial help when they are in urgent need of it and so timing is of the essence. The creditworthiness of the borrower does not matter to the lender. They only need to see a statement of past and present credit card sales to ensure that repayment can be done. The application process can be done online. There is no monthly payment to be done; instead, you agree to pay a percentage of every credit card sale.