Financial technology or Fintech is an innovation used for applying and receiving financial services. Fintech apps save time and effort in managing business finances. It makes the lending process simple for both small business owners and lenders. Fintech is playing an integral role in the exponential growth of small businesses.
The traditional way of lending requires lots of paperwork, one-on-one meetings, and much more; but with the financial technology, business owners can save their valuable time and can get the funding in a hassle-free manner.
Financial technology is helping businesses in providing:
- A state-of-the-art Accounting software
- Business finance management
- Business valuation services
Business Insider research reported that the lenders using financial technology have underserved small businesses, but the truth is, they are finding innovative solutions to make to make small businesses profitable.
Maintenance of Complete and Updated Profiles
Due to many missing gaps in the documentation of any business, lenders can’t get each and every detail about their customer. Financial technology has made business record management easy. From the inception of your business to date, you can manage all your financial records through Fintech. Additionally, startups can maintain their records digitally and can tap into them online.
Digital Payment System
Due to the advancement in financial technology, business owners feel more comfortable working with the credit companies where the payment process is digital, easy and inexpensive. The digital payment system is nothing less than a blessing for companies conducting businesses overseas. Stripe-one of its best example.
Lending Solutions by Financial Technology
Small businesses looking for funding program are familiar with the intricate and tiresome process of traditional funding. The major problem related to traditional lending is its long-drawn-out-approval process and funding speed.
However, financial technology is the new alternative for banking and has changed the course of lending by eliminating the obstacles between applying and getting funds. When using a digital lending platform, you only need to provide your personal and business credit score. If your lender requires something different, financial technology helps them to get the required piece of information immediately. This whole process is not very time-consuming.
Keep an eye on Business Financials
Financial technology applications such as Intuit-marked QuickBooks is accounting software that helps you save time in the payroll process. The saved time can be invested in other productive things. Financial technology helps businesses to automate expense tracking and invoicing. This technology minimizes human interaction throughout the invoice process. It helps you save cash on unnecessary manpower: account management, cybersecurity, and lease & rental management.
Lastly, financial technology has helped in ways:
- You can get instant access to business’ cash flow.
- Get your hands on customer data.
- Detailed financial statements provide a better picture of their business’ financials.
Businesses that were limited previously, now, have the golden opportunity to flourish with the help of latest financial technologies.
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