Over the past 5 years, small business lending has undergone a dramatic transformation with the rise of Fintech lenders making the application processes faster and easier. However, research shows that access to capital is still a serious pain point for most small business owners, and many are not even aware of the alternative finance solutions available to them. Read on to find out more about small business lending.
Today’s small to medium-sized enterprises have more choice and faster access to funding because of innovative lenders who are focusing on delivering quickly, being flexible and making the lending process easy.
As the second-largest market for alternative finance in the Asia-Pacific region, Australia’s alternative finance market grew by 53 per cent in 2016 and then a further 151 percent in 2017 (based on compound annual growth rate). As customer expectations have changed, so too have the Fintechs in the online business lending space. These online lenders are making funding accessible and easy for small business owners, many developing their own in-house credit risk algorithms that speed up the application process.
Fast turnaround time and shorter applications, along with funding access within 48 hours are just some of the drawcards to this type of finance, allowing business owners to move quickly and take advantage of business opportunities while remaining nimble and agile in the market.
There’s no doubt that technology has changed the way we work, giving us more freedom to become mobile and leading to the rise of home-based businesses or remote offices. Increased mobility brings with it more flexibility in the way we work, and has subsequently triggered a wave of entrepreneurs who shy away from traditional pathways.
As a result, their finance needs have changed as have the way these entrepreneurs seek finance solutions. While traditional lending institutions require rigid frameworks and lengthy applications, online lenders can provide a more flexible approach in considering a business application and the associated perceived risk.
Online lending looks set to become a serious contender in the small to medium business enterprise lending space, offering flexibility and easy access to capital funding. If you’d like to find out more about small business lending options that might fit your needs, get in touch with a Mortgage Express broker.
Source: Cultivating Growth: The 2nd Asia Pacific Alternative Finance Industry Report by the Cambridge Centre for Alternative Finance, the Tsinghua University Graduate School, the Australian Centre for Financial Studies at Monash Business School and KPMG with support of the CME Group Foundation and HNA Capital.
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