Over the years, banks’ ability to offer financial support to businesses and especially SMEs has declined. This has reduced SMEs’ dependency on banks, leaving them with the option of finding more reliable forms of financial support. As a result, alternative financial service providers have emerged to cater to SMEs’ growing financial needs.
The emerging financial service providers operate in the form of Financial Technology (fintech) companies, which have positively disrupted the financial sector by offering SMEs a wide variety of financial help. Here is a detailed look as to why SMEs should look beyond banks for their financing needs.
Reasons for Looking Past Banks for Financing
Outlined below are some of the reasons why most SMEs are drifting away from relying on banks for financing:
Lenient Terms and Conditions
Banks impose strict terms and conditions that govern the tendency of SMEs to apply for loans. These strict terms keep off most SMEs from accessing bank loans, especially if they need large cash advance loans. Most small businesses are not financially stable and mainly depend on external financial support to keep them running. Therefore, lack of financial support has made it hard for them to remain afloat. However, to continue with their operations, SMEs can access different types of loans from other financial service providers at lenient terms and conditions.
Fast Loan Approval
The process of getting a loan from a bank is sometimes lengthy and may take a couple of days before the loan gets approved or before the money gets into the SMEs’ account. However, with other service providers, especially the fintech companies, loans are approved faster. The faster loan approval comes in handy when businesses are faced with financial emergencies.
Banks are limited in the types of loans they offer SMEs, and this may leave some businesses out. However, fintech companies boast of versatility in the loans available, which caters to different SMEs’ needs. They include business cash advance, merchant loans and large cash advance loans. Other types of loans available for SMEs are fast cash advance loans and immediate cash advance loans.
If you are in the UK and want to secure some funds for your SME, you can talk to MoneyGiant. Here you can get the best business cash advance loans where cash advance online UK and merchant cash advance loans are available at an affordable rate. These loans can be processed in as little as 48 hours. Speak with our loans team on 0345 257 8080 or send an email to firstname.lastname@example.org.