The FinTech industry is on a cusp of a technological revolution, challenging every aspect of traditional financial management. A big metamorphosis is about to happen in the small business sector as FinTech companies take over the financial industry by storm with lots to offer to startups and small businesses in the form of lending, foreign exchange, and various other financial products and services. There are reasons to believe that FinTech is quickly filling in the gaps that the traditional banks have left wide open.
Here’s how FinTech is all set to reshape small business funding in a big way:
It is a known fact that most small businesses fail due to lack of working capital. Access to easy loans is critical for startups so that they can invest, expand and grow. However, lack of funding options can put a final nail in the coffin.
Post the great recession of 2007, banks have become very picky about lending, because of which, every business owner finds it very challenging to approach a traditional bank to get a loan sanctioned. FinTech has changed the entire dynamics of lending and borrowing. Many online lending platforms like LoanTap, MoneyTap, CreditMantri, etc., have evolved to eliminate all the underlying challenges business owners go through at every step, from the application, processing to loan approval. With digitized lending platforms, business owners can get a personal loan in the form of a business loan for emergency use with an easy online loan application process and quicker loan approval decision.
There is always a fear lurking in the mind of a business owner about keeping their data safe from cyber threats and attacks. For small business owners, the fear is more pronounced because they are often not prepared to handle the expense required to keep their data and that of their vendors, contacts, and customers secure. FinTech has made cybersecurity affordable for small businesses. There a quite a number of options in software packages that are easy to install and can effectively put up a defense against cyber threats.
Easier To Accept Payments Globally
Before Fintech, small business took help from credit companies to accept overseas payments. With the advent of FinTech companies like PayPal, MobiKwik, etc., the process has become easier. These service providers make transactions simpler, as customers from any location can pay for their purchases through smartphones.
Easier To Do Overseas Business
Before financial innovations grabbed a foothold in the financial sector, businesses had to pay a huge amount to traditional banks as fees to transfer money overseas. With the evolution of FinTech, financial transactions can be made between people from different countries, thus lowering the cost involved and thereby opening new opportunities for overseas trading.
FinTech has opened new and exciting opportunities for small businesses. They can now offer their services to the world, accept and make payments, maintain inventory, etc. And all these by spending less than what they would typically spend traditionally. As FinTech gets integrated with many business applications and operations, it’s not too soon to say that FinTech is here to stay!