Financial technology covers a host of financial services software that has come of age in the 21st century. FinTech is an economic industry composed of companies that use technology to make financial systems more efficient, as Wharton describes it. Most SMBs are affected by some application of financial technology, whether they know it or not, and FinTech is changing the way that small businesses meet cash flow concerns within their business. Here are the six ways FinTech startups can help small business owners meet cash flow challenges:
Business loan funding
FinTech is making it possible for more small businesses to get the funding they need. While most small business owners prefer to work with local community banks, FinTech has brought online lending to a certain level of popularity even with those business owners by making the loan process quick, painless, and putting funds where they need to be in a lot less time than community banks ever could. A great win-win situation for small-business owners, in fact, is a small community bank that offers a FinTech-based online lending experience.
The ability to do “soft-pull” lending is also greatly increased. Since the process no longer requires a hard credit pull against an individual or business, the lending application phase has become far easier, faster, and more efficient – leading to more business owners taking the plunge to go after the funding they need to expand to a new location or infuse their venture with some working capital.
The right financial tools can mean the difference between hundreds of man-hours being spent on things like payroll and being able to divert those man-hours to other avenues of productivity. FinTech packages such as Intuit QuickBooks’ suite