Capital is a concern for many small businesses.
Whether it’s loading up on inventory, acquiring the newest technology or completing payroll, there’s never enough money to go around.
Not only does this put a strain on your profits and margins, but it can also hurt your personal life, and the lives of those closest to you.
Large corporations rarely have this problem. With their seemingly endless amounts of wealth, they can expand operations and purchase mass inventory at will.
And on the rare occasion where they need more capital, corporations will have no problem finding a financial suitor.
Banks love large corporations. They’re reliable, renowned and send lots of money.
In the past, small businesses have lacked the same support offered to large corporations, despite their knack for driving countless economies.
But things seem to be changing.
Capitalizing on Capital Needs
Politics and policies aside, small businesses will always play a key economic role.
They bring mass job growth and technological innovation, and consistently punch way above their financial weight.
Fintech companies are capitalizing on this lack of support by providing small business lending to the masses.
Small business lending funded almost $10 billion in loans between 2015 and 2017, generating $37.7 billion in gross output.
And this came primarily from fintech companies.
Although fintech businesses are leading the small business support parade, banks are starting to realize the opportunity sitting in front of them.
However, many of them still lack the personal touch of these fintech institutions.
A Special Breed
Banks can’t quite put their finger on small business needs yet.
Since they aren’t everyday consumers, chequing accounts and waived ATM fees won’t grab their attention or keep their service.
And most small businesses don’t have a team of accountants like large corporations do, nor do they require billion-dollar loans.
Stuck in between these two demographics, small businesses often lack services that are specific to their needs, such as personalized support, payment tracking and capital lending.
Banks aren’t bad people, they just don’t have the resources needed to support this special demographic.
And because of this, governments are investing in fintech to promote small business lending, not in the banks.
They know a lost battle when they see one.
When small businesses are supported, the world is a better place.
With the funding they need, they can continue to foster growth and promote technological innovation without being stymied by a lack of capital.
And fintech and other financial institutions reap the profits from providing an essential service to a demographic in desperate demand.
It’s truly a win-win situation.
Small businesses have been loved and supported by Veem since the beginning.
We offer payments built for small business needs, including real-time payment tracking, intelligent routing, and the latest cybersecurity.
You need 7 tools to master international trade. Find out what they are.
Plus Veem’s resource library ensures your small business has what it needs to succeed, whether it be international country guides, to accounting how-tos.
And it doesn’t stop there.
We understand the issues that small business owners face when it comes to finding funding.
That’s why we partnered with Bluevine, which provides business line of credits for up to $200,000, and invoice financing up to $5 million.
Join Veem today and bring your business to the next level.