The business world can be extremely harsh for a small to medium sized company, which tends to have opportunities and hurdles far more frequently than a much larger competitor. Hence this is the sector of business which is most likely to require a fast injection of cash, though perversely, quite often the sector that actually finds it hardest to get. While larger firms have of necessity to plan things ahead much more carefully, bringing with it time to consider the financial planning of any growth, a small business has a greater potential to grab an opportunity, assuming of course, they can find the money to pay for it. A roofing company for instance, following a violent storm, may be inundated with work, but not have the means to purchase all of the materials it requires, to be able to take on very profitable work. By the time a standard bank loan application has been processed, all of the work may have been taken up by others and the opportunity is lost.
How Traditional Banking is Losing Ground
As larger companies tend to take longer to react to changes in the marketplace, so is the case within the traditional banking world. While it has adopted many very beneficial IT elements into its business, which has improved customer service operations and enabled it to record and store details of every financial transaction, to comply with regulatory requirements, it is guilty of not watching its own front door. As we hear more and more of Blockchain technologies and crypto currency, so the financial world is becoming far more technologically reliant, and the banks are being very slow to catch on. The bank is still trying to offer you its product, an often quite stiff loan agreement, over a period they choose, with interest rates they determine and payment amounts set by them. That is you are actually fortunate enough to even get approved of course.
Finding Affordable Loans Quickly
With today’s financial world, money can go from anywhere, to anywhere else, and get there in a fraction of the time and cost of days gone by, meaning the overhead on obtaining money has fallen. Lenders from all over the world are able to approve transactions anywhere in no time at all. Software brings this together, to enable a highly customised application to be made, whereby the customer gets to choose all of the differentials. They set the amount of the loan, the repayment period, the interest rate and the monthly repayable amount. With companies like Max Funding, quick business loans can be processed speedily and they can take the application, and process and approve it in about the time it takes to make a cup of tea or coffee. Can you even imagine walking into your bank and telling them the terms of the loan, and getting them to agree in five minutes?
Because of its simplicity and the speed with which loans can be applied for, and the levels of flexibility being offered, the use of financial technology, or FinTech, is growing rapidly. The banks need to also adopt the same levels of usage of what is at their disposal, or run the risk of being left behind in its own industry once again.