The working capital of a company covers costs such as the rent for the premises, the payroll, and any repayment of debts, payment of taxes, and all other overhead costs. This is why it is so important to maintain sufficient working capital in any company.

1. Importance of Working
Capital To A Business

2. Working capital is crucial to the survival of any
business, be it big or small. It is the amount that is left
over when you subtract the liabilities you have from
your assets. The greater this amount, the more
successful and stronger is your business.

3. Working capital is used to expand the business and
increase its growth potential. Working capital can be
used to manufacture new products or to add to the
products of a retailer. It could also be used to purchase
machinery and inventory.

4. The company hires more personnel using this money or
uses it for employee training. It can also be used to
meet unexpected expenses. Thus the working capital of
a company is used to run the daily operations of a
business organization.

5. If the working capital corpus is low, or there are
expansion plans, companies borrow money from
lenders such as Mantis Funding to ensure they can stay
on the growth path.

6. Looking To Quick Cash Advances from Financial Lenders
The working capital of a company covers costs such as the
rent for the premises, the payroll, and any repayment of
debts, payment of taxes, and all other overhead costs. This is
why it is so important to maintain sufficient working capital
in any company.

7. If this corpus dips too much, it could result in
bankruptcy with your company closing down. It could
also lead to an inability to attract investment in your
company by other investors.

8. It could stifle the growth of your business and also
result in increased cost of inventory as suppliers will be
unwilling to give trade discounts to those who do not
pay on time. That is why finance managers quickly look
for lenders such as Mantis Funding who responds to
financing requests with minimum delay. They also
provide flexible repayment opportunities giving the
business an opportunity to stabilize itself.

9. Business Funds versus Cash Advances
Mantis funding cash advance is different from
business funds obtained from traditional banks as the
future sales of the business are offered as collateral for
the cash advance. This merchant cash advance is given
on the basis of future revenue.

10. In banks, the entire amount is handed over to the
business owner and the interest rate applies as long as
the fund is pending. The cost & term rates vary
depending on the duration of the term.

11. In cash advances, however, the cost & term rate is agreed
upon at the very beginning and the borrower is expected to
work towards paying off the entire amount. The greater
the sales for the day, the greater will be your payment.
There is no fixed payment that has to be made on a
monthly basis and this flexibility ensures less stress on the
business owners when business is slow.

12. Easy Tracking Of Cash Advance Repayment
Merchant cash advances by Mantis Funding is easy to
track as payments are made by customers using a card
machine. The lender and the payments provider work
in unison to ensure the percentage agreed upon
reaches the lender during each transaction.

13. The lender is also able to keep track of the total sales for
the month. The merchant is able to factor in his costs
including the repayment costs right from the beginning.

14. Each payment brings down the total debt amount,
which can be quite comforting. There is also no money
to be put aside as the percentage due to the lender goes
out with each transaction. Cash advances are usually
taken when the working capital dips and there is no
other avenue of credit.

15. The cost and term rates can be rather high which is a
deterrent but the lack of the need for collaterals makes
this way of cash generation rather attractive.