Unraveling the hidden enigma of APR behind the merchant cash advance service

There is no denying the fact that small and medium businesses require quick funds for varying purposes. These can include a prospect of expansion, reinventing the inventory, or even renovating the workplace.

What’s hard to see is the reluctance of traditional channels to help SME owners. Further, the current lockdown will only weaken the stand of SMEs in the market.

In these circumstances, there are only two options for an SME holder. One, he should turn to his reserves; however, this does not seem to be an appropriate option given the uncertainty over the lockdown. For that reason, one should turn to the second option, i.e., for services like that of Mantis Funding cash advance service.

As an SME owner, cash advance service is the best in cases where the need of the hour is quick cash. Due to its fast processing and flexible conditions, this service is often a small and medium business owner’s favorite to obtain some urgent and quick cash.

Nonetheless, there are several factors that catch SME owners by surprise. One of those factors is APR or the annual percentage rate. APR is responsible for the incoming capital of many small and medium businesses. Further, many funding firms do take advantage of your APR’s lack of knowledge and do not disclose the rate until you have signed the documents with them.

APR: The rate at which the merchant cash accumulates over the years is termed as an annual percentage rate or an APR.

Calculating an APR is little perplexing due to the fact that every funder has a different merchant cash structure. Making the APR different for every funder in the market.

However, APR can be calculated. APR is nothing but an interest rate charged along with some fees by the funder; thus, making the calculation clearer, provided that you know the rate and fees.

As a small or medium business owner, it is very crucial to have solid market research for the APR. This enables you to have an idea about the ongoing rate and the best offer you can get from different options. Besides, as a part of the market research, do opt for different channels like that of Mantis Funding complaints which will give you a better idea regarding the same. Thus, helping you to make better decisions.

Apart from the cost, the term of the repayment also plays a pivoting part in the formation of APR. You may tend to contemplate that a merchant cash advance service might have more fees, and, due to that, it may turn out that this offer is not your first choice. However, when you see the role of in this offer APR, then you will realize that when the offer is spread over the years, it turns out to be a wise and better choice in comparison to what other traditional counterparts were offering.

However, it is good to read a few articles about the service and APR as a whole. Given the fact that APR can be calculated effectively, one can say that this service is not that a big factor. It is just word of mouth that people tend to fret over something that is right in front of us. Besides, reading a few columns on-site like Mantis Funding cash advance can clear the confusion regarding merchant cash advance and estimate and APR.

How is Alt-funding Appropriate for Small & Medium Enterprises?

The post-recession phase has been very hard for many small and medium enterprises. The fact that traditional funding channels have tightened their ever rigid regulations has made it all the more difficult for SMEs to fetch funds for their venture’s growth.

Besides, there is no hidden secret to the fact that small and medium-sized enterprises (SMEs) come up against bigger financial hurdles because of their lack of credit history. To add insult to injury, the traditional channels need substantial collateral along with a good credit score, if they are to approve an application.

For this reason, it comes as no surprise that about 80% of traditional funding applications of small and medium enterprise owners are rejected. Seeing these stats, one thing is bound to cross the mind and, that is, who will fund these SMEs given that traditional channels are so reluctant in their nature? Should these SME owners wait for their application to get rejected while letting a chance slip away from their hands?

We all know that today’s market is very time-sensitive. Thus, proving that depending solely on the traditional channels is a mistake. And for this reason, the market has seen the growth of alt-fin firms like Mantis Funding. These firms are a better, smarter and sharper way of elevating SME’s growth to the next level.

However, is it right for small and medium enterprises to associate themselves with these firms? This is a question which we will answer today! 

These firms understand the time-crunch an owner faces:

Time is gold and gold is not to be sold! Any person sitting at the pinnacle of the industry will never neglect time as a factor for his success. Yet, somehow, traditional channels are still working with their etymological time-consuming way to process an application. They don’t really buy the proposition of an SME getting once in a lifetime opportunity to capture its respective market. They will look for their credit score and collaterals before approving any application.

This itself is kind of frustrating. And, firms like Mantis Funding have worked pretty hard to solve this problem. They disburse the funds within two business days and sometimes, in case of real urgency, they do it within 24 hours of the approval! Certainly, in doing so, they give the owner the opportunity he needs to acquire or upgrade the way he wants.

These firms prevent the owner from nasty debt:

The last thing an SME owner wants is to get stuck with debt over his head. Debt is a pretty vicious financial weapon. On one hand, it takes away all the hard-earned money and leaves the owner with minimum opportunity to save funds for future endeavors. And, on the other, it worsens his credit score, which tends to play a defining role in getting his application rejected when he is seeking funds from traditional channels.

The best thing to dodge this nasty application dent is to opt for alt-fin firms. Firms like Mantis Funding reviews an applicant’s application on his past bank records instead of digging into their credit history.

Hassle-free documentation:

Last but not the least, these firms have an AI/ML backed application system that removes the tedious and arduous process of documentation. For instance, Mantis Funding reviews applications promptly and its documentation process is basically a matter of a few hours.