Financial success isn't a matter of luck, it's a matter of planning. Part of good planning, when it comes to running a business, is about putting things in motion, so that you can keep working without intervention.
Fintech (Financial Technology) can enable you to access finance for your business and save time. With the advent of smartphones, digital banking and apps, access to finance is on your fingertips. Fintech helps businesses and their clientele have better control over their financial activities, processes and systems.
Fintech's rapid growth calls for an increased focus on financial education. Even though fintech reduces the barriers to capital, the fundamental risks and organisational constraints remain the same for micro-small-and-medium enterprises (MSMEs). As a result, SMEs must enhance their efficiency and become financially literate to avail of the benefits of Fintech for small businesses.
Fintech for small businesses: Why is it needed?
- Fintech-enabled NBFCs are making it easier for MSMEs to access formal and personalised credit products.
- Many small businesses don't understand how to obtain structured financial information. Tech-focused strategy has been implemented by NBFCs to overcome this stumbling block by providing automated financial products, such as digital loans.
- There is no need to submit physical documents; fintech companies will take pictures or can verify your information online
- Fintech works to ensure that the clients' financial needs are addressed in the quickest and most cost-effective way possible.
- Fintechs look beyond just your credit score and evaluate other parameters to assess if you are eligible for a loan.
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How can Fintechs help small businesses?
- Both short- and long term-loans are disbursed almost immediately.
- Most loans offered by Fintechs-enabled NBFCs have competitive interest rates.
- Processes for loan application and disbursement have been simplified and made more effective by using Fintech for small businesses.
- Fintech-based NBFCS use the latest technology. This includes measuring and identifying a small business's reputation and goodwill, as well as evaluating the business for a collateral free loan.
- New-generation NBFCs are leveraging AI (Artificial Intelligence) and data-led decisioning to enable faster processing and innovative underwriting.
How is technology helping MSMEs grow?
Technology has been accelerating the evolution and growth of MSMEs. Though multiple channels, small business entrepreneurs can now connect with customers and operate digitally and access capital. When it comes to taking a loan, technology has eliminated the need for middlemen who might take a cut out of the loan and have ulterior motives. It promotes a well-organized business structure, while also lowering prices and improving the MSME system.
At Kinara Capital, we are a fintech for small businesses ensuring personalised customer service. Small business owners can rely on us for a range of business loans for their expansion needs. We provide business loans for asset purchase and working capital to small business entrepreneurs across the value chain for every business need.
Kinara can complete the loan process and disburse funds in 1 day, which is far faster than the industry average, thanks to the company’s custom risk assessment approach, flexible product terms, customer-centric processes, and supply chain integration. Kinara Capital’s loans have touched the lives of a million people and resulted in the creation of 70,000 new jobs, many of which have gone to first-time earners and women.
By providing access to capital for MSMEs and using fintech for small businesses, Kinara Capital has enabled an increase in entrepreneurs’ incomes, job creation, and has helped create sustainable businesses, leading to economic development and.