When Your Business Experiences a Downturn, Capital Funding May Help

1. When Your Business Experiences a Downturn, Capital Funding May Help

2. It doesn’t matter what business you own, what product you sell or what service you offer. It is inevitable that there will be times that your businesses experience a downturn or a reduced cash flow. In these times you can turn to your company’s rainy day fund, but for many small or micro businesses, this may not be sufficient. Their profit margin may not be enough to put sufficient funds away or the business simply hasn’t been in operation long enough to build up sufficient funds. These are the times that can make or break a new, small business.

3. So what does a business do to get past these times? Frequently all the business needs are a few thousand dollars. If they had these funds, the business would have no problem, the loan could be repaid and the business would survive. The problem is many banks don’t see it that way and if you don’t have family or friends that can help out it may be the end of your dream.

4. Capital Funding CompaniesCapital funding companies are in existence to help small businesses with small loans. They understand the value of small businesses to the community they serve and the economy in general. Small businesses are the backbone of the U.S. economy and employ far more people than large corporations. That is why capital funding companies, such as Mantis Funding, for example, will work with a small business owner to determine if they can loan them the Mantis Funding Cash Advance they need.

5. Capital funding companies will look at businesses that haven’t even been operating for a year. They know that the early months of business are when a business is most likely to need assistance. Though a new company has a good business model and is managing their revenue responsibly, there will almost always be some unforeseen variable that they couldn’t have planned for. New taxes would be one or new government regulations would be another.

6. For example, the legislation that requires online businesses to charge tax required software changes to accommodate this regulation. It may even have required the small business to acquire new software or changes to existing software to ensure the correct taxes are collected. For a business owner that had a consultant to set up their website could require an additional cost to enable the business to comply with these requirements. Or the payment processor may increase their fees so they can upgrade their software to comply with the new laws.

7. No Loan Is Too SmallCapital funding companies are often willing to fund even an amount as low as two or three thousand dollars. Banks may not always be willing to loan such low amounts of money, particularly if you haven’t been in business very long. The good news is that this is precisely what capital funding firms do. They give small loans to small businesses based on a criterion that can be met by new businesses. For example, Mantis Funding reviews the business model you use, what your product or service is, your customer base, your revenue stream, and other factors.

8. If they determine you have a steady or growing revenue stream and/or customer base, you will meet one hurdle. Growing businesses are an indicator that whatever your business is, it is in demand. If your customer base grows, then your marketing plan is likely to sound. Next time you find yourself short of funds, consider a company like Mantis Funding. Just make sure you look up important information, such as Mantis Funding complaints, so you know how customers are treated should they have any type of a problem.