While the fintech revolution may be continuing apace, it's fair to say that a number of SMEs fail to appreciate the full range of benefits that this has brought.
Make no mistake; fintech innovators have had a pronounced impact on how businesses are managed and operated, while also removing barriers to entry across a range of industries.
Here we consider some lesser-known applications for fintech in your business.
1. Taking automated payments from customers
While direct debits are nothing new, several fintech start-ups have made it their mission to make this payment method more flexible and convenient.
Innovators such as SmartDebit and GoCardless have enabled start-up businesses and SMEs to automate direct debit transactions, including recurring payments and one-off customer interactions.
The main benefits of these platforms is that they ensure payments are made on time, while reducing the potential for human error. This is hugely positive for small businesses working with tight financial margins.
2. Turning invoices into instant cash
The failure rate for new businesses is surprisingly high, with research by US Bank revealing that 82% of unsuccessful ventures failed due to cash flow issues.
One of the biggest issues for smaller firms is extended payment terms, specifically those relating to 60 or 90-day invoices. While start-up companies may be forced to agree to these terms in order to secure work, they're often left short on cash and may find themselves unable to operate.
In the same way that online trading platforms like ADSS have made margin-based forex trading available to investors, fintech innovators have created solutions that enable clients to turn invoices directly into cash.
Commonly known as invoice financing, these platforms allow firms to sell their accounts receivable to third-party investors online, before repaying this debt virtually once clients have settled their outstanding invoice.
3. Migrating receivables to the cloud
Most start-ups typically can't afford to hire full-time staff to manage invoices, process payroll and chase clients for payments.
Historically, this would have required owners to spend their valuable time managing these tasks, often at the cost of business growth and strategic development.
Fintech start-ups such as Corcentric and YayPay have created solutions to tackle this issue, however, by automating processes and enabling firms to migrate their accounts receivable to the cloud.
This not only saves time and improves efficiency, but it also offers access to predictive tools that actively improve your processes.
Copyright © 2018 Article was made possible by site supporter Victoria Harrison