FinTech seems to be on the lips of all entrepreneurs nowadays. It is believed to be the new financial revolution that will open new possibilities to all businesses, no matter their size. Small businesses in particular, seem to have countless benefits in they choose FinTech services, especially for funding and managing their expenses. But how exactly is FinTech helping microentrepreneurs achieve their goals?
The main reason why many potential entrepreneurs give up on their ideas to open a small business is that the funding process is quite difficult and counterproductive. A never-ending list of documents that need to be gathered and uncomfortable conversations with traditional financial institutions, which are not very fond of microentrepreneurs are just a few of the experiences that small business owners are going through.
FinTech companies are helping those who want to open a small business, by streamlining the lending process. Everything happens in the online, does not require stacks of paper and visits to the bank and the approval rate is much bigger. This way, small business owners don’t have to go through the overwhelming process of literally begging the banks for funding.
Especially when it comes to small businesses, where every dollar matters, entrepreneurs need to keep track of all expenses, to ensure that the monthly budget is not going to be exceeded. FinTech companies have already started to introduce apps or platforms where business owners can keep track of their budget, expenses and overall cash flow fast and convenient.
The good thing about these apps is that you don’t necessarily need to have years of experience in accounting to use them. They are generally free and have been developed with the intention to help struggling microentrepreneurs succeed.
When it comes to international payments, traditional financial institutions charge quite significant fees, which is why most small eCommerce businesses avoid shipping overseas. FinTech companies aim to help microentrepreneurs overcome these challenges by offering cheaper and easier money transfer and payment options. They provide dedicated platforms, with ongoing support, to help small businesses join the eCommerce wave, which is expected to reach $735 million by 2023.
Payment processing is becoming easier to manage, as through FinTech, small businesses can now extend to accept all forms of payments, including credit and debit cards, as well as mobile wallet and even cryptocurrencies.
Getting to know your customers, together with their needs and interests, will help you improve your business to provide better services. FinTech companies that offer payment processing solutions can now provide business owners with insight about their customers. They can provide details regarding customer preferences, wants and engagement, so that they can tailor their marketing campaigns accordingly.
Some platforms even allow merchants to communicate with their customers via private chats, to streamline and improve customer service. On top of that, business owners can now integrate various marketing elements with their payment processing options, such as customer feedback, email campaigns and benefits for loyal customers.