Fintechs role in financing SMEs during a time of economic crisis – as reported by Tech Funding News

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Even in times of climbing inflation, rising energy costs, and overall low morale, many entrepreneurs still see opportunities to expand their business and be confident about the future. Many entrepreneurs are continuing to grow and look for new markets to explore and expand into. This perseverance is good for the economy and for society. The issue then is ensuring the cost of living crisis does not stop companies  and entrepreneurs from achieving their ambitions.

What sets fintech companies apart from banks is their ability to offer very customised support and help to suit the financial demands of individual companies – and to do so quite quickly. They’ve got the tech, the agility and the desire to help – their companies are exclusively focused on SME support and putting customers at the centre of their business.

Fintechs also have ability to address the different requirements that companies have when it comes to financing – whether it’s a digital bank offering instant loans in a matter of minutes or a crowdfunding, peer2peer lending platform, where the public is vetted and allowed to engage in micro IPOs for businesses in need of liquidity.

These days, crowdfunding and small loans aren’t enough to keep SMEs going. Some companies are still expanding and growing even in the midst of an economic crisis and they need help to find their way through the challenges that come with this – such as late invoice payments and upfront payments.

This is why invoice financing has been critical during the post-Covid, post-Brexit world – and enjoying a boom in popularity among SMEs.

What is invoice financing?

With this route, companies can secure immediate payment of invoices, which can be reinvested as quickly as possible – so companies have the liquidity to keep going – whether it’s paying employees, third-party suppliers or utility bills.

Invoice financing also offers more generous payment terms to scaling borrowing. It is easier to secure invoice financing than other forms of funding, making it a fast and straightforward way for businesses to access funds immediately. It also does not matter how many customers that the business has.

The business picks how many and which invoices they wish to fund, giving them access to the funds when they need it.

For information on invoice financing contact Accelerated Payments.

For more information on this topic see here.

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Liam varley

Vice President - Cyber security - State Street

Liam is an experienced Cyber Security Manager with a demonstrated history of working in the information technology and security industry. Skilled in Incident Response, People Management, Talent Development and Process improvement. Strong SOC and Talent Management experience with a MSc in Computing focused on Applied Cyber Security from Technological University Dublin. While also holding certs in GIAC SANs Incident handler (GCIH) & Cyber Security Leadership from the Professional development academy.

liam varley