Did you receive or send money to someone using a mobile app recently? Or did you pay your Netflix subscription using Moneylion or SaadaPay? Well if you did then you are already using FinTech but didn’t know it, until now.
Whether you run a small business or a large one, the advantages of Peer-to-Peer lending are limitless. But, with so many options in the market, choosing the right Fintech solution can be stressful sometimes.
In this article, we’ll walk you through the top 5 benefits of Fintech for small businesses and the possible hurdles that might come along the way. Moreover, you’ll learn how to empower your business finance sectors like bookkeeping and financial management using top Fintech Apps.
What is FinTech? Understanding From Scratch
The word “Fintech” is a combination of two words, Finances and Technology. In simple words, any financial activity that involves technology is known as Fintech. The goal is to automate and modify your business finance using Peer-to-Peer Lending.
P2P is simply a transfer of funds between individuals or companies without the involvement of an official financial institution. Fintech Apps are peer-to-peer lending done through online platforms like Moneylion, RobinHood, and even your banking apps.
Top 5 Benefits of FinTech For Small Business
Usually, multinational companies hire people to get financial services to closely examine how business is growing or not. But for a startup or running a small business, your budget might not fit for the high payrolls at the moment.
This is where Fintech comes to the rescue. With easy peer-to-peer lending, one will have sufficient time to focus on the growth of the business rather than collecting and managing financial statements. Here are the top benefits of fintech that will help small businesses in getting ease with their finance. Let’s dive in:
1. Easy Payment Processing
One of the top benefits of peer-to-peer lending is the payment processing method. For startup businesses, it’s quite annoying to install large and bulky machines to collect money from consumers. Moreover, most people prefer to pay with plastic rather than paper these days.
Mobile payment processing solution is as easy as plugging a charger into a wall socket. All you need are tiny card readers that can link with your smartphone easily and do the job. Some of the popular mobile payment solutions that can connect with digital devices are:
- PayPal
- SaadaPay
- PayAnywhere
- Square
- And many more
2. Easy Loan Grant
Raising investment or getting a loan is a painful process, especially if you are doing business for the first time. Thanks to FinTech, getting funds for your startup or running a business is quicker than ever.
Instead of sitting in the waiting areas of the bank praying they might not reject your application, peer-to-peer lending is much more convenient and secure. Some of the popular companies that are providing loan services include:
- Fundbox
- Kabbage
- OnDeck
3. Cost Efficient
Usually, companies hire accounts and financial advisors to handle their financial sectors like bookkeeping, stock management, customer ledgers, etc. These organizations pay good payrolls to them every month. But that’s for big business, not for us who are just about to start a new business.
With Fintech Solutions, one can save accounting costs for small businesses. Whether you want to track your expenses, business taxes, payrolls, or contracts with suppliers, everything can be done with peer-to-peer lending. Some of the top accounting tools for startups include:
- Sage Accounting
- QuickBooks Online
- Fresh Books
4. Customer Insights & Engagement
Another benefit of Fintech is the rich experience of customer insights and keeping things on track to maximize sales. With financial technology, it’s easy to monitor the customer repeat, what he needs and what he wants. This is a great marketing technique to generate new leads.
Let’s understand this with an example. Square is a famous platform that provides great consumer engagement features such as:
- Customer Visit Frequency
- Private Messaging
- Email Tracking Tools
- Loyalty Activity
- And the list goes on
5. Money Transfer
According to a recent survey, there are more than 26.5 billion E-commerce stores today in 2023. Imagine this number for one minute in your head. This is huge, right? Well, Fintech is an important factor for this growth that makes it so easy to buy and sell for everyone.
Having a secure and easy money transfer process is the top priority of anyone who owns an e-commerce store. Whether it is a local payment or an international one, peer-to-peer lending can make things quite simple these days
Some of the secure and reliable fintech solutions for money transfer are:
- World Remit
- TransferWise
- Kantox
- Currency Fair
- There are more but the most reliable are the above ones.
To learn more about the other platforms providing secure money transfers, do check out Tech’s Pursuit Website.
The Future of FinTech
Financial Technology is a one-stop solution to avoid a stressful life for startups. The benefits of peer-to-peer lending provide services from financial management to gaining access to funding. These services can save a lot of money and make the whole process much more efficient.
If you are looking to upscale your business growth to a whole new level or start your first business, consider using these fintech solutions to make your professional life stress-free.
Afterall there is an old saying “To achieve great things, two things are needed: A plan and not quite enough time”
So it’s better to start early than finish late.