Five Crucial Fintech Trends for Small Businesses


With straightforward and rapid access to services which provide an array of distinct options, entrepreneurs and small business owners now have the tools to interact with their finances on a new level. Toby Triebel, co-founder and CEO of Spotcap, an instant business loan service, outlines the 5 crucial Fintech Trends for SME’s…

1. Tap into Cloudfunding

Recent forecasts by Cisco Global Cloud Index show that the global big data market for SMEs will grow at a compound annual rate of 43 per cent by 2018. This big data gives businesses the opportunity to find trends and quality analytics. Using online accounting solutions like QuickBooks or Kashoo which are based on cloud software, small businesses can manage their business finances, all in one easy-to-use place. With these tools time and money can be saved by getting instant insights to the status of their business.

2. Follow the Crowd Digital Crowdfunding platforms

have become an attractive option for entrepreneurs at early stages of business growth, industry estimates suggested that global crowdfunding reached close to $34.4 billion. Allowing owners to raise investment and access capital from a large number of investors. These platforms are also a great PR tool to help new businesses spread their name to both clients and investors. Companies such as Crowdcube or Tilt allow entrepreneurs to connect with a crowd of capital sources.

3. Consider Delayed Payouts a Thing of the Past

Waiting for customers to pay can be an added difficulty to any SME. New fintech companies like Charter Capital or Payplant have sped up the collection of payments for small businesses by turning the receivables to cash instantly. These firms offer cash advances to small companies that can’t afford to wait 60 or 90 days for invoices to be paid. Once the invoices are paid, the lenders are paid back. In this way, SMEs become more flexible and are able to meet the demands of their customers.

4. Break the bank

The Federal Reserve Bank of New York reports that small business borrowers spend up to 25 hours of their time just on paperwork for bank loans. Due to the entrance of fintech players, this slow process is becoming a thing of the past. Online lending platforms like Spotcap leverage big data to provide financing solutions for small businesses. Instead of looking at historical financials going back five years, these alternative lenders focus more on real time financial performance over the last 12 months.

5. Say Goodbye to Cards and Cash

According to a study by eMarketer, more than 73 per cent of the UK’s population will make an online purchase this year. By accelerating and moving away from cards and cash, most SMEs are turning to these online payment services which provide speedy, efficient and borderless business solutions for both consumers and owners. There are many services which have unique characteristics to fit a SME’s needs, from developers of smart device software like Paypal that can greatly increase mobile conversion, to others like Transferwise, which allow users to reduce international transfer fees.