Growing Your Small Business by Leveraging Fintech

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In this day and age, digital transformation is no longer an edge—it’s necessary. We’re not only talking about digital adoption in marketing or advertising. Leveraging technology can also make your business’ day-to-day operations and back-office tasks more convenient, especially if you lack workers.

Without enough workforce, many small businesses rely on third-party companies to run daily. Some leave certain HR functions and payroll services to the hands of a specialist company. Others outsource their customer service functions from BPO companies overseas. But there’s still value in keeping some business functions in-house. The key is to use the right technology to avoid hiring more employees than necessary. One great example of this approach is embracing fintech or financial technology.

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Fintech matters to small and mid-sized businesses

Initially, fintech apps targeted consumers, from saving apps to online-only bank mobile apps. Increasingly, though, the fintech industry has turned its sights to small and mid-sized enterprises (SMEs). It now provides smart solutions for several finance-related business tasks, automating previously manual and tedious work and making it possible for SMEs to scale their finance operations without more hires.

Fintech apps, however, are not created equal. How will you know which app suits your business best?

How fintech gives SMEs their much-needed boost

Here are a few ways SMEs can take advantage of fintech. See which one can help your business best.

Automating accounting

A clear understanding of your cash flow allows you to make better decisions for your growing business. You can easily choose where and when to invest more money and know whether you afford to upgrade equipment. But unfortunately, not all small businesses have a bookkeeper or accountant on their team. No matter the reason for the lack of personnel, fintech can help fill the gap by automating accounting tasks.

Many new solutions provide easy-to-use tools that help you manage invoices, expenses, and accounts payable. Some apps even allow you to do cash flow forecasting. So, if you need a lending hand tracking every dollar that goes in and out, perhaps, an app is all you need.

Processing online payment methods

Somehow, fintech levels the playing field between SMEs and bigger businesses. It revolutionizes SMEs with apps that easily process online payment methods, making it possible for SMEs, including one- and two-person companies, to cater to more customers. That’s especially beneficial amid a pandemic when every consumer looks for convenience when choosing a brand to purchase from.

Whether you run a ghost kitchen or sell handmade crafts online, you no longer have to let customers walk away just because you don’t have a POS terminal. You can process credit or debit cards on your phone.

Expanding finance options

Traditionally, SMEs needed to go to the bank or lender to acquire a small business loan to fund capital, equipment, or another branch. The process could take weeks, even months. But fintech has made this transaction easier, faster, and more convenient, especially for SMEs that might need funding right away.

CircleUp is a good example. It is an app that backs the growth of startups through credit and equity fundraising. All you have to do is to apply online, and CircleUp will collate interested investors for you. With its services, you no longer have to spend weeks going to different banks and lending companies to get the funding you need. This kind of support can truly boost the growth of your small business.

Fintech can help solidify the financial operations of your small business, even with a lack of personnel. But you have to assess your top business priorities and look for relevant fintech solutions to ensure you can truly leverage technology. From there, you can explore more technologies that can boost other aspects or functions of your business and keep your small company competitive and growing.

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