As a business owner, you often need to access capital to realize your business growth goals. Have you ever considered approaching fintech companies for your financing requirements? Maybe you should the next time you want easy-access small business loans to take your business to the next level.
Read on to familiarize yourself with fintech companies and how they can be an excellent solution for your business financing needs.
What Is A Fintech, And How Can It Help Your Business Get The Funding It Needs To Grow
Fintech, otherwise financial technology, refers to the adoption of modern technology to deliver innovative financial solutions to meet the emerging needs of borrowers.
Fintech includes technology-based financial transactions such as mobile payment software, online payment platforms, and electronic transfer of funds, plus the digital infrastructure that drives these financial services.
Benefits of using fintech as a business funding option:
- Speedy approval of credit applications thanks to automated appraisal systems
- Innovative financial solutions that are alive to the needs of the digital marketplace.
- Available 24/7
- Highly secure platforms
Different Types Of Fintech Services That Are Available To Businesses
1. Lending On The Digital Platform
You can access microloans and small business loans on the digital platforms of fintech companies. Traditional lenders may find some funding requests beneath their lending thresholds. That’s where fintech organizations come in.
2. Digital Payment Platforms
Apart from lending, fintech companies offer e-commerce payments solutions for small businesses selling their products online. Platforms, such as Paypal, are convenient for shoppers as they can make payments online over their mobile apps from anywhere.
3. Global Money Transfer Solutions
Fintech companies have made it easy for small businesses to send money abroad and convert funds across currencies. They’ve made the process cheap and fast, sometimes taking just a few minutes to conclude a transaction.
Fintech companies such as Wise, Payoneer, and Remitly make it possible for small businesses to buy supplies, receive payments, and pay remote workers across the globe.
4. Monitoring Cash Flow
Fintech companies offer cloud-based systems that allow for the storage of vital financial records and the monitoring of business expenses.
Accounting software such as QuickBooks Online has made it possible for business owners with basic knowledge in accounting to run their bookkeeping functions and monitor cash flows like pros.
Some Of The Best Financing Options That Fintech Offer
- Personal loans
- Small business loans
- ITIN loans
- Startup business loans
- Machinery purchase loans
How To Choose The Right Fintech For Your Company’s Needs
1. Range Of Fintech Solutions Offered
A fintech that offers a fully integrated financial system works much better than a platform that merely provides a specific financial solution.
Look out for fintech companies that offer digital banking services, money transfer services, accounting solutions, business growth tips, etc.
2. Suitable Match For Your Business Needs
The fintech company must offer a product that’s a suitable match for your business needs. If you’re looking for small business loans, you’ll want to be sure you will be adequately served. Are they able to meet emergency finding needs?
Scrutinize the fine print to ensure you’re going for affordable capital that makes economic sense.
Additionally, consider the applicable set-up costs of the system. A financial service that’s easy to set up but requires a lot of heavy accompanying investment is eventually expensive.
4. Ease Of Use
Many business owners aren’t tech gurus. They require a graphic user interface that’s easy to understand and interact with.
A well-designed system is simple but comprehensive, easy to navigate, accessible via mobile, and also enjoyable to behold.
Think of future growth as you forge ties with a fintech lender. Do they have the capacity to meet the projected growth needs of your business?
6. Integration With Workplace Technology
As much as possible, opt for cloud-based solutions that seamlessly integrate with the other software that already runs in your office.
The exception is where your office runs on outdated technology that requires an overhaul.
7. The Level Of Security
You’ll be sharing sensitive financial information over the platform. The fintech platform needs to offer a solid promise to its clients that their data security is non-negotiable.
Common threats include viruses, unauthorized access to data, bugs, etc.
Approach a reputable fintech with a wide range of financial solutions that match your company’s present and future needs. It’s also prudent to ensure that you’re settling for affordable additional capital.