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.