How Fintech Is Making It Easier than Ever to Fund Your Business
BY: RICHARD BERTCH ON FRIDAY, MARCH 30, 2018
There are countless challenges that come with being a business owner, not the least of which is simply trying to secure the
funds it takes to keep your company going – or simply get it off the ground in the first place. Fortunately, it has never been easier to fund your business thanks to fintech.
3 Ways Fintech Revolution Has Made It Easier to Fund Your Business
The Fintech Revolution is here to stay.
While it will be decades before we can look back and appreciate just how much it has changed the world of traditional finance (or completely eliminated some parts), it’s clear fintech has made it easier to fund a business than ever before.
Here are three examples:
1. Greater Access to Personal Loans
One of the biggest ways fintech has impacted the financial markets is by making loans far more accessible than ever before.
This change has been so great that it’s hard to imagine how traditional lending by large banks will survive the years ahead. That’s because business owners don’t need to visit their local banks anymore and go through the process of applying for funds – a process which could easily take a month or longer.
Instead, these owners can now go online and apply for personal loans, accessing multiple vendors through a single portal and see their options faster than ever before. They are no longer stuck with what their local vendors are willing to offer and can get approved in as little as 24 hours.
2. Spreading Crowdfunding
Another undeniably exciting development in fintech has been the rise of crowdfunding. While personal loans likely won’t lose relevancy anytime soon, crowdfunding has become a popular funding method for startups. That’s because it offers fast access to cash – in amounts large and small – without necessarily the same strings attached.
In fact, crowdfunding has proven so promising that the EU is considering special measures that will help crowdfunding platforms scale up faster to help ease their reliance on traditional banks.
3. Connecting Investors and Businesses from All Over the World
Fintech has also made the planet a much smaller place in terms of lending. Whether a business owner elects to use crowdfunding or stick with a single lender, fintech has ensured they aren’t necessarily limited to those within their own borders.
Companies like WorldRemit and Transferwise have been connecting companies and investors from different countries for years now. The latter has been so successful at this that it’s already worth more than $1 billion.
They even added Ben Horowitz to their board.
Horowitz is well known for being a founding partner of the legendary Andreessen Horowitz. His interest in this kind of disruptive company doesn’t just speak highly for that specific business’ future but the future of fintech as a whole.
Now Is the Perfect Time to Start Your Business
The global fintech investment market is expected to continue growing at a CAGR of more than 54% before 2020. So expect a lot more disruption in the years to come.
For now, there’s no denying that fintech has already made life much easier for business owners. If you’re in need of funding, forget about the traditional way of doing things and consider your new options.
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