How Are FinTech Platforms Helping SMEs?

09 Dec 2020
how-are-fintech-platforms-helping-smes

Undoubtedly, small and medium-sized companies are playing a significant role in the growth and improvement of the economy. However, budget constraints and scarcity of resources often impact the smooth operations of small and medium-sized businesses. It is where the real power of the FinTech platforms comes into play. Today, FinTech providers are helping small businesses by providing working capital finance and quick business loans. While the business loan was limited to medium-sized and large organizations over the last decade, it is not the same anymore. FinTech platforms have made it easier for small businesses to get collateral-free business loans. 

The COVID-19 pandemic has impacted small and medium-sized enterprises. Are you one among them? Fret not! OfBusiness offers collateral-free business loans up to two crores. 

Ways FinTech Platform Helps SMEs

#1: Term Loan

Term loans are either secured or unsecured. It entirely depends upon the business owner’s credit history and score. If the entrepreneur has a clear credit history, they could get approved for an unsecured term loan on a FinTech platform. However, they have a fixed tenure in terms of repayment. The users cannot pay the amount based on their convenience. However, any business owner can opt for a term loan from a FinTech company and utilize it effectively for their business needs.

#2: Start-Up Loan

As the name suggests, start-up loans are exclusively for start-ups. Fintech platforms introduced it to support start-ups compete with large businesses. The amount of start-up loan a company can get entirely depends upon the credit history of the entrepreneur. In addition to the credit score of the owner, other factors such as company turnovers are considered.

#3: Working Capital Loan

Working capital loans are usually taken when a company faces challenges in running their operations as usual. In a way, a working capital loan from a FinTech platform tackles challenges of businesses such as lack of funds in running the operations smoothly. The great news is that companies like OfBusiness are offering working capital loan up to two crores without any collateral. If you are facing difficulties in paying your employees or clearing other dues, contact OfBusiness.

#4: Loan Against Property

This type of loan is also called commonly as secured business loans. To avail a loan against property, an entrepreneur will need to submit the property documents. It is the same as that of taking a house loan. A significant advantage of loan against property from a FinTech platform is that you can get a considerable amount if you have a good property. The amount depends upon the property you’re keeping to get the loan. SMEs can consider this type of loan for starting their business.

#5: Equipment Financing

As the name says, equipment financing is a loan to purchase the valuable equipment for the firm. This loan is applicable mostly for companies in the manufacturing sector. SMEs can easily get the loan approved for purchasing equipment by submitting basis documents. The main feature that makes equipment financing one of the most preferred options of SMEs is that the rate of interest is lower. Entrepreneurs can easily get equipment loans for a lower rate of interest. Get a FREE quote for equipment financing here.

#6: Invoice Financing

In most of the cases, small and medium-sized businesses face delay in getting the invoice cleared from their clients. In such cases, they can avail invoice financing. Various FinTech providers offer loans up to 80% of the invoice amount. The users can clear the dues once they get their invoice cleared from their clients. In this way, FinTech companies are helping SMEs run their operations smoothly.

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