As the fintech revolution continues, everyone from consumers to small businesses is starting to realize its benefits. One reason why fintech companies are thriving is because they make it easier for small businesses to grow. The more access that small businesses have to financial services, the greater the chance that they will be able to branch out. Following are a few ways that fintech is helping small businesses to expand.
In the past, this blog has discussed how fintech lending companies have been able to accurately assess whether it’s safe to provide a particular small business owner with a loan. Lending companies can evaluate borrowers through a review of their online data and behavior.
Small business owners who have been denied loans by traditional lending companies often find that fintech companies are more willing to supply them with the capital that they need. Most business owners are savvy enough to know whether they’re in the hands of someone they can trust.
Fintech services have made it easier than ever for small business owners to establish budgets, manage payroll, and track their earnings. In the past, they may have had to hire additional employees just to manage these basic tasks. Without the necessary tools, they had to rely on others to help them.
That’s no longer the case. Now it’s possible for one person to handle all the major financial tasks involved in running a business. Small business owners often do not have the money to hire extra help. Before fintech companies began offering easy-to-use products and tools, they were struggling to grow and devoting too much time and energy to these tasks. Now, they can complete them more efficiently.
Technology that makes it easier for buyers and sellers to conduct transactions online is an example of fintech.
In that respect, fintech has greatly expanded opportunities for small business owners to reach potential customers. Without the online tools to facilitate transactions, these businesses can only reach customers in their area. Due to advancements in fintech, they can now sell to almost anyone in the world.
For many business owners, that is important. The ideal customer for a specific product or service may not necessarily live or work nearby. For instance, perhaps you’ve started a small business selling high-end jewelry that you designed yourself. Reaching your target audience is not a problem when you can simply establish an online shop that will enable you to reach your desired customer. Fintech plays a critical role in ensuring that the transaction process is safe, intuitive, and efficient.
Fintech also offers advantages when it comes to paying contractors. Many small businesses rely on freelancers and contractors who are not on the regular payroll, and it’s important to ensure that these individuals are paid on time. If you develop a reputation for not paying your contractors, it will be difficult to find others who are willing to work for you.
That’s another reason why fintech makes life easier for small business owners. Everything from Paypal to Venmo enable you to pay people who only work for you on a contract basis. In only a few moments, you can receive an invoice, send a payment, and confirm when it has been delivered. As a result, you will be able to establish yourself as the kind of small business owner whom freelancers can trust.
Many banks have already leveraged fintech to make life simpler for their customers. For example, some banks now allow them to deposit checks via their smartphones. They can take a picture of the check, send it through an app, and skip the line at the bank.
Obviously, this helps small business owners to work more efficiently. Setting aside time to visit the bank each week means you will have less time to focus on growing your company. Once again, fintech allows business owners to streamline basic processes.
Moreover, fintech companies such as Domuso are making it easier for the owners of rental properties to collect rent via a quick digital payment. Through Domuso, landlords can receive payment quicker and more dependably. Moreover, by paying their rent through a fintech service, residents will be able to turn an otherwise time-consuming process into one that takes less than a minute.
As fintech continues to evolve, the advantages that it offers to small business owners will continue to grow, as well. Those who pay attention will be most likely to reap the benefits.