In today’s world, small businesses contribute a lot to the country’s economy. Whether it is a startup or a small business, they can face financial issues. At times, these financial issues are so severe that they lead to company shut down and, as a result, these businesses are forced to declare bankruptcy. These small businesses usually work on minimum financial reserves. They do not have much to rely on in case of adversity.
Fortunately for these small businesses, things are looking up with the advancement of financial technology. Fintech (financial technology) has a number of solutions that not only save these businesses from bankruptcy but also help them grow and thrive. We have compiled a small list of options to help small businesses maintain their cash flow.
Very few financial transactions take place in cash nowadays; most people use plastic money. In other words, credit and debit cards have replaced hard cash. They are not only convenient to use but safe as well. Small businesses must be prepared to accept plastic money. However, huge, bulky machines at the cash counter are expensive to maintain and, many times, out of the financial scope that a small business could have. Instead, mobile wallets, credit cards, debit cards, and payment apps are much more expedient.
No matter how small a business might be, it will require a lot of investment. Even after the investment, they must remain ahead of the curve since they’re competing against larger, well-established competitors. Over the last two years, the pandemic has added to the woes of small business owners. In situations like these, setting up an online storefront or an eCommerce website is the best solution to avoid losing sales. With the help of a common merchant services provider software, your company’s financial operations will most likely run much smoother than before. These payments are made via the internet, and each business has its own links through which they complete its payment transactions.
A very important aspect of any business, funding, and loans have become very easy thanks to fintech. Something that would usually take weeks, if not months for approval and a lot of heavy and cumbersome paperwork as well, can now take place within a matter of days with the simple click of a button. Applying for loans online has become child’s play. These loans are as easily approved as an application for leave. There are many websites designed solely for the purpose of giving loans to small businesses.
Small businesses that are operating on an international basis have many options available for money transfers through Fintech. There are many companies and apps specially set up for international money transfers across countries and continents. These transfers are not only easy but also have a lot of safety measures in place.
Maintaining accounts in a business can be very cumbersome. The accounts need to be maintained precisely to know the exact financial condition of the company at any given time. Fintech solutions are helpful not only in maintaining precise accounts but also help in saving the costs incurred for manual accounting.
Insight into Customer Demands
Another advantage that Fintech has is that it is able to provide customer data to the companies. Consumer patterns, interests, needs, and wants are easily accessible to business owners. This data helps in lead generation for current as well as prospective customers. There are specific Fintech apps that help maintain customer data like a proper customer directory, customer feedback, and frequency of customer visits. Included are certain marketing features that help integrate the businesses with financial payment systems.
The bigger the investment in a business, the more time it takes to break even, let alone make a profit. Luckily, though, with the advent of eCommerce and fintech, the investment in the infrastructure of a business has seen drastic changes. Ecommerce platforms do not require the business houses to invest a lot in infrastructure. There is no need to spend on land, machines, offices, etc. Obviously, when the investment is less, the scope for profit is going to be a lot more.
People usually prefer a regular income through fixed-salary jobs. They don’t want to take a risk by getting into a business that might not be as reliable or profitable. Fintech has emerged as a solution for all those who want to get into entrepreneurship but are scared to do so because of the many risk factors out there. They are able to save money, procure loans easily, earn profits and work more efficiently. Fintech is definitely going to be influential in the future of the business industry; it can aid any type of organization, whether you’re just starting out or are already an established business looking to improve your operations.