Start-ups and SMEs are the backbones of every ambitious economy. The more the economy can help start-ups and SMEs develop and sustain their operations successfully, the stronger the economy gets in return. This is why most economists advocate for a start-up conducive environment.
But what is the biggest challenge that start-ups and SMEs struggle with during their formative years?
Let’s delve further into this.
Absence of a reliable, steady cash flow
Understandably, the biggest struggle is the absence of steady cash flow to rely on. Steady cash flow is an assurance to the businesses that they can sustain and expand comfortably in the future. Without this cash flow assurance, the road to growth and expansion for start-ups and SMEs is pretty bumpy all along the way. With the simultaneous growth of alternative lenders like Mantis Funding, steady cash flow isn’t an unreal unattainable dream for SMEs.
Reasons for the absence of steady cash flow
Start-ups and SMEs often struggle with unsteady cash flow due to irregular payments and late deposits that affect their smooth running. It doesn’t matter whether the late payment is deliberate, an error, or denial. The damage is a done deal. To prevent failure in the long run, cash flow is needed, and luckily, alternative lenders like Mantis Funding are on hand to help to struggle SMEs with their customer-focused lending services.
Lack of Easy Access to Finance
In the fast-evolving and extremely competitive business world, opportunities do not present themselves twice. As a budding entrepreneur, you have to make the right growth decisions at the right time. This is where the ease of accessing finance comes into play. To grow, you need extra capital, and it can be pretty disheartening for a promising SME to be rejected for financing by a traditional bank. And this happens more often than not. Reasons could be anywhere from less than stellar credit scores to high collateral demands.
However, with the emergence of a sound alternative lending industry, the onus of financing on traditional banks has reduced to a greater extent. Alternative lenders like Mantis Funding reviews each application independent of credit scores. They have their own creditworthiness evaluating parameters in place. Also, Mantis Funding reviews each application without placing a demand for heavy collaterals. Thus, the silver lining at the end of the financing cloud appears brighter than it did a few decades ago.
Are you a serial entrepreneur? Do you run a business? What is the biggest challenge you faced during your businesses’ formative years? Comment below.