Flourishing small businesses are a sign of a sound economy. The market niches not taken by the government or large corporations are usually filled with small and medium enterprises. These enterprises follow a more inventive and flexible business approach, and they often bet on innovative technical solutions, which later are poached by corporate giants. At the same time, being an essential element and even a basis of healthy civil society, small business owners are vulnerable to a variety of operational issues –mostly financial. These can be solved with clever fintech payments and finance tools.
How fintech payments and finance tools help small business
They avoid banks that encumber SMBs
Every year some high ranking public official claims that banks will move towards small businesses. In practice, the situation remains unchanged with the large banking institutions continuing to put a spoke in wheels. Meanwhile, the scenario should be quite the opposite, where banks act as partners rather than obstacles.
The need for funding is the reason that you have to visit banks or other financial institutions. Someone needs a start-up budget; others require funds to support their stable business, or get a loan to start a new venture. Anyhow, money pressure forces SMB owners to pound banks’ pavements in the hopes of getting a loan. A denial hangs over almost a half of applicants requesting less than $100K. Such microloans are out of banks’ favor due to low-profit rates. Besides, even if you request a larger amount, your application can be denied due to numerous reasons like poor credit score, limited collateral, availability of other debts, a risky early-stage venture. As a result, having no financial support your business approaches the verge of extinction. So, if you are underbanked, are there any other options to find the cash? Yes, this is where fintech payments and finance tools come in…
Fintech payments and finance tools to the rescue
Technologies show rapid development leading to the growth of useful and necessary fintech startups, as well as companies that offer financial software development services. They pursue a single goal – to offer a better alternative to traditional banks’ cloying procedures. Fintech companies and traditional financial service providers differ in their focus area. Unlike large financial corporations, fintech makes emphasis on SMBs and the way they handle money. These fintech payments and finance solutions include lending, electronic invoicing, account management, rental management and other financial services all available on your PC, laptop or smartphone. As soon as you taste the benefits offered by financial technologies, you will forget the path to banks. So, what exactly can fintech advances offer to small and medium-sized businesses?
Fintech payments and finance tools to support SMBs
The following companies and startups offer multiple fintech payments and finance solutions for individuals and small companies to shift your business to the next advanced level.
Kabbage
Kabbage is a great solution to attract additional capital to your business. To get qualified, you should meet two core requirements: minimum one year in business and no less than $50K annual revenue. Kabbage does not offer one-time loans but credit lines up to $250K. You can choose a 6/12-month loan term and calculate your loan payments upfront using the loan calculator. The entire process won’t take more than several minutes.
LendGenius
A wide range of loans is available with the LendGenius service. These include loans for business acquisition, SBA loans, startup, working capital, etc. All you need to do is to select your loan requirements and provide some information about your business activities. The requested amount may range from $1K to $1M. At the same time, such qualification factors as credit score, annual revenue, and time in business directly influence your annual percentage rate. After that, you will need to choose the lender and get the money.
Hyperwallet
Apart from money lending, there are versatile fintech payments handling solutions. Hyperwallet is a payout technology to manage your earnings, commissions, and other payments around the globe. To accomplish a transaction the following basic information is needed: payee data, how much to pay, and contact method. Hyperwallet can reduce administrative hassle, compliance risk, and internal payee customer service. Collection and verification of payee details are also covered by the service. So, those who aim at growing their business should definitely keep this tool in mind.
Due
Due is a tool to manage your invoices, payments, and track time. Small business owners who prefer doing business rather than spending time on invoicing will appreciate the Due’s functionality. Managing payment forms, monitoring payments, sending reminders to debtors, as well as automatic distribution/deposition of funds are real boosters of your payment processing. With this service, you will optimize your activities and take the business to the next level.
Wave
Any small and medium-sized company dreams of a no cost and performant software. Wave is a free fintech payments and finance solution to improve cash flow, distribute money, help businesses to get paid, deal with taxes and finance-related docs. With this tool, a small business owner’s financial life will thrive. The most attractive thing is that you get software for accounting, invoicing, and receipt scanning without any charge.
TenantCloud
TenantCloud is a software solution for rental accounting and management. It focuses on three categories of clients – tenants, landlords, and service professionals. So, there is a high probability that your business will benefit from this fintech solution. Its functionality covers full accounting, online payments, tenant screening, online applications, automatic invoicing, property analysis reports, etc. Besides, you can try the basic account for free to understand whether the tool is effective for your needs. Tenants are limited in their choice since TenantCloud is always no cost for this category of customers.
Conclusion
Today, technologies have become an inseparable part of human life. Sometimes it is difficult to catch up with the times, but it is essential if you want to keep your head above water. Fintech solutions will definitely make a difference for your small business. Now, you have only to choose which particular tool fits the job.
