Banks, VCs, and other traditional owners of capital had been the be-all and end-all on the lending landscape for centuries. If your loan application was rejected by a bank or your pitch didn’t sound convincing to Venture Capitalists (VCs) and angel investors, you had no options.
Thanks to the internet and the rise of cutting-edge financial technology. Fintech times have flipped the script on the lending land, which is shaking traditionalists to the core. Think of crowdfunding, peer-to-peer lending, and the rise of online lenders.
Small business owners now have a lot of choices to source for startup and growth capital. For instance, Camino Financial offers small business loans to minority business owners who make as little as $2,500 sales a month. Depending on your needs and the type of business you have, your choice of loan provider will defer. You can check out bestsmallbusinessloans.com to find the lender that suits you best.
Fintech stands for financial technology. It’s a blanket term describing the use of advanced financial technology like Machine Learning (ML), Natural language processing (NLP), and Artificial Intelligence (AI) to automate and streamline operations in the financial industry.
Fintech lenders use cutting-edge tech to automate lending workflows, understand and gain insight into their prospects’ credit behavior, slash lending overheads. As such, they’re able to offer better, faster financial services to individuals and businesses. Their business operations are entirely on the cloud.
There has never been a better time to start a business than now. First, eCommerce has collapsed all barriers of entry in the business ecosystem. eCommerce models like dropshipping and third-party fulfillment make it possible for anyone with a laptop and internet connection to start a business without a huge upfront investment.
Then fintech comes in to solve the financial barrier. You can easily and quickly get small business loans from a reputable online lender within a short call to jumpstart your eCommerce store and keep it growing for many years to come.
Traditional lenders love to see excellent credit scores, long trading history, and substantial business revenues. Fintech lenders are the exact opposite.
They welcome borrowers with bad or no credit who have been into business for a year or even for months. You’re more likely to qualify for a loan from an online lender when banks turn you away.
Long are the days when you had to wait weeks to months to get funded or rejected! Fintech lenders have brought the lending process up to speed. Once you prequalify for a loan, accept the loan terms, and get approved, money will be in your account within 24 hours or a few business days.
Unlike traditional lenders that entangle you with a bureaucratic, paper-laden application process, fintech lenders have an online, paperless applications process. Just submit a loan application form online and upload electronic identification and financial documents.
Hidden fees and unclear lending terms are a bane in most financial institutions. Fintech helps solve this problem. They offer a quick pre-approval process so that borrowers can see eligible loan amounts, fees, and APRs before completing the real application.
Reputable lenders offer loan calculators so that you can calculate your loan costs upfront before going into debt.
No banking hours to beat or physical locations to visit. You can apply for a fintech loan at night from anywhere and get funded in the morning.
Minority entrepreneurs face systemic racism and gender bias issues when seeking credit from banks. This is becoming a thing of the past in the fintech world. Fintech lenders employ advanced tech to offer financial service to minority entrepreneurs, including:
Fintech lenders use alternative data like bill payments, web activities, social media data, transaction history, or phone and in-app activities to determine the creditworthiness of thin-file borrowers. Thus, minority entrepreneurs with poor credit or no traditional credit history can access funding.
Some minority entrepreneurs, especially immigrants, lack proper identification documents and social security numbers and stand no chance to get a loan from traditional lenders. Some fintech lenders offer ITIN loans to these types of borrowers.
Fintech lenders use technology to solve issues of gender bias and systemic racism. Unlike humans, their tech-powered platforms only determine loan amounts and lending terms based on the borrowers’ creditworthiness.
Fintech times have democratized the lending scene. Unlike traditional financial institutions, they are willing to work with thin-file borrowers and minority entrepreneurs. Plus, they have a simple application process, offer faster lending, and have transparent loan terms displayed on their website.
Visit the link in the intro to learn more about small business loans from a reputable fintech lender.
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