Lending was among the first areas of finance to be disrupted by technology. This led to the lending market shifting from traditional financial institution to fintech companies providing alternative lending options.
Fintech companies are changing the traditional lending methods by utilizing data and technology. Their lending process is faster, easier and more accurate and thus being used casinos like Canada online casino.
The Fintech finance companies provide loans to SME’s using online platforms making the loans flexible and non dilutive.
Rather than submitting a traditional application, where borrowers have to give compelling reasons of why they need the money, Fintech have supplanted this process with peer-to-peer lending.
Below are ways in which Fintech has changed the business lending process;
- Making Capital more Available
A while ago, borrowers had to try their luck by applying for loans in different financial institution until they found the one that offered attractive lending terms and one that could actually approve them.
This case has changed since the introduction of fintech companies, where the lending opportunities are open. All a borrower has to do is fill in the application form, which is sent to multiple loan providers.
Fintech companies have a marketplace lending, where they source for lenders. In these marketplace, the borrowers find a lender that suits their needs and approve them.
- New lending Models
The innovation of fintech companies has changed every aspect of traditional lending. In traditional lending, the customer has to deposit with the lender for a while to receive the loan offers.
One way that fintech companies changed the lending process is by introducing associate lending. This means that the customer doesn’t have to make any deposits at all to receive the intended loan. Instead, customers are advised to lend others thus earning interest on their money.
Traditional lenders did not offer unsecured business loans instead they needed a collateral to reduce the amount of risk took on by lending.
- Offer Fast Funding and Approval
Regardless on the type of loan on offer, fintech companies take pride in faster applications, approval and funding times.
Normally, it takes banks and credit cards providers weeks or even months to process and approve a loan. This may be a disadvantage to the client especially if they need to use the money instantly.
Fintech companies have made the process faster by offering online lending platforms where customers can request and get a loan in less than 24 hours. This is mostly favorable for online players who love slot games.
- Utilizing Collected Data
All fintech companies use data to determine how much a borrower is eligible for, and how likely they are to repay the loan. These companies collect data from networks like facebook, LinkedIn, Quickbooks, Amazon, UPS and much more then crunch within seconds to create the borrower’s portfolio.
The information collected can include utility bills, auto payments among others can be used to determine how likely one is to repay a given loan.
To keep up with the trending financial upgrades, fintech companies have implemented alternative credit data to get a more comprehensive report instead of solely relying on traditional credit scores. Some of these companies include gaming companies offering casino games like habanero games.
- Connect your Bank Account
In traditional lending, if one wants to take a loan the application process would involve a business providing physical records of its bank history. Usually, most banks ask for records of at least 3 to 6 months.
With the fintech business loans, when applying for a loan, the borrowers connect their bank account securely. This allows the lending company to look at account and see if you are fit for a loan. The other advantage is that borrowers get their money straight in their bank accounts.
In summary
Financial technology is here to stay, and will continue to change things in the lending business. It is important for borrowers to stay in touch with the latest developments and take full advantage of the benefits offered by fintech business loans.