The traditional model of new and old businesses depending entirely on their banks is no longer the only option for them, earlier; the industry was an oligopoly, with just a handful of institutions offering business finance products and services
Fintech refers to a range of utilities that are commonplace and helps manage corporations by providing commercial utilities through useful technologies. Fintech professionals such as Ferhan Patel use financial technology in their daily tasks, and it competes with the traditional methods by making those facilities available for the public by changing the way they manage concerns with cash flow.
There are 5 ways in which it helps in building the business and it covers industries such as financial services, money transfers, crowdfunding, forex and asset management
1) Makes Loan Funding Easier
It makes possible for them to get the funding they need. Many small industrialists used to only chose to work with local banks, but it has made the online lending simple as well as fast, increasing the popularity even for the small industries. It has increased the awareness of Cryptocurrencies to help fund small industries. The advantage that comes with Cryptocurrency Bitcoin is the flexibility associated with it.
2) Access to Market
E-commerce and digital payments have opened up access to market and small scale players are doing digital commerce, with minimal investments. It has an important role to play as far as awareness of SMB’s regarding all their options are concerned. Experienced Fintech professional Ferhan advices small scale players regarding E-commerce and Payments with minimal investments.
Documentation: SMB’s struggle with a lack of plans and with the complex processes which banks usually ask. It helps by providing templates for plans, documentation and inviting on boarding offers.
3) Collateral for Loans and Interest Rates
To build technology infrastructures with commercial models, credit assessments and risk score tools, fin techs are constantly investing by combining extensive data modeling.
4) Decision Cycle:
No good SMB will have to wait longer for a loan as they have the option of multiple lenders options to choose from recommendations given by Fintech players. Fintech has wonderfully played the role of connecting markets and capital by providing plenty of options to businesses and by helping the lenders in credit appraisal of businesses by providing extensive knowledge and data. It ensures the mutual trust between the buyers and sellers
Conclusion: SMB’s struggle with a lack of plans like financial projects, extensive project plans, and complications associated with the difficult processes which banks demand. The factors that play an important role in its success are access to market, availability of capital, documentation, etc. Companies can take the expert guidance regarding Fintech from experienced professionals such as Patel and others.