How fintech is reshaping the landscape of business finance

Simon Moorcroft, above, director and chief technology officer at Capalona, sheds light on the changing fintech landscape and how it continues transforming business finance

Traditional lending was the only way to access business finance for a long time. This way included in-person branch visits, more paperwork, stricter regulations and higher eligibility criteria.

But times have changed, and the financial technology landscape continues evolving rapidly. With access to smart technology, business loans have never been more flexible, accessible and effortless for SMEs.

Data-driven decision making

Applying for finance through a fintech platform makes the loan application process much more efficient. These platforms leverage AI and machine learning to do all the tasks that can hold up your application, such as analysing borrower credit ratings and automating the underwriting process. With tech lending a helping hand, the lending decision can be almost immediate.

Leveraging tech in this way makes lending more accessible and inclusive to a wide variety of business owners. Giving owners the ability to grow their business with an injection of working capital almost instantly. Cover cash flow gaps, seize new market opportunities, bulk-buy stock – the options are endless.

Customised financing solutions

SME Publications/ SME XPO 2024

Every business is different, which means their loan needs also differ. That’s why personalised financing solutions are key to transforming business finance. Fintech can offer personalised financing solutions after in-depth, automated analysis of financial profiles. Business owners can unlock customised loan structures, flexible repayment terms and personalised interest rates.

And with so many business finance products to choose from on the market, it’s possible to find a product to suit specific requirements. You need to unlock cash tied up in invoices? Invoice finance. Or you want flexible repayments that support your business seasonality? Merchant cash advance. You need to access finance quickly without risking commercial assets? Unsecured loans. There’s plenty of choice – take your pick.

Efficient and cost-effective

With tech completing the tedious and repetitive admin tasks, the entire process has less wasted time and resources. Loan approvals and risk assessments are automated, and cloud-based technologies mean no physical infrastructure is required, which means customers benefit from cost savings through competitive interest rates and fees.

By making finance more affordable, flexible and accessible to businesses of all sizes, fintech can help UK SMEs transform their companies, reach new audiences and diversify their offering quickly and easily.

Enhanced customer experience

Fintech puts the customer at the centre of the experience by creating a seamless and user-friendly process. Mobile apps and online platforms make the experience extremely convenient – allowing users to manage their accounts, make transactions and monitor financial activities all from within one platform.

The smart tech at the centre of these platforms also helps generate targeted and personalised financial offers taking into account individual needs and preferences without human interference. The financial ecosystem has never been more streamlined and responsive than it is right now.

Final thoughts

Fintech has no doubt transformed how businesses access finance. And the landscape continues to evolve, making the process more inclusive, efficient and data-driven.

At Capalona, our free business finance comparison service helps UK business owners find and compare eligible business finance options. Get a quote in seconds and unlock working capital within just hours.

SME Publications/ SME XPO 2024