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How FinTech Can Bolster Small Businesses
Fintech is disrupting the conventional financial services. It does not just touch the financial services sector but every operation of financial industry such as mobile payments, loans, money transfers, asset management, fundraising and more. FinTech startups are small and agile and small businesses can use them to their advantage. Here are a few tips on using FinTech for small businesses.
Acquiring Business Loan Funding
FinTech assists small business owners in obtaining the required funding. Small business owners used to opt for small, local banks but FinTech startups have opened up a new platform which provides fast and straightforward online lending. Additionally, they have increased awareness regarding Cryptocurrencies like Bitcoin to help fund small business and make other payments. Bitcoin offers flexibility to business owners by providing a different approach to payments.
Electronic invoicing allows business owners to automate payments and reduce cash flow challenges. This technology reduces the amount of human interaction required to process payments and makes it instant and straightforward without any geographical boundaries hampering the process. By lowering the people involved to get the job done, the companies can save a lot of money.
Property managers, landlords, and real estate agents are getting on the FinTech revolution. They can efficiently manage their tenants remotely by sending them rent notices and accepting payments with their smartphones. This process helps them boost productivity.
Cybersecurity is a big issue for business owners, and even small businesses must keep their data secure. FinTech brings cybersecurity to these small organizations via various software packages to improve their defenses. Even the non-technical business owners can install and manage this software.
Get Cash from Invoices Instantly
Majority of startups fail because of poor cash flow management skills. As an example, if invoices are paid with a payment term of 90 days, startups have to issue free loans. Waiting for 90 days for the payment is something that small businesses cannot afford. Several startup resources offer a range of options that help these small businesses to finance these receivable instantly.
Affordable Account Management Tools
There are a lot of tools that are crucial for a business’s success like an accounting profile and managing client profiles. Small companies can’t afford these tools because of the cash crunch. FinTech companies make these tools affordable for SMBs. Linking business credit with accounting software to automatically pay off credit without any human interaction is widely practiced by organizations.
Automate Monthly Payments
There is more than one way to accept customer payments. Automating monthly variable payments, one-off payments and fixed subscription and membership payments improve the timeliness of the payments. Additionally, it removes the possibility of human error causing delays in the payment process. FinTech makes real-time customer service, accepting payments, paying employees and managing inventory while spending less money.