As the cost-of-living crisis rumbles on, the computer says no attitude of the traditional banking system is causing huge issues for SMEs who need access to finance to survive and grow.
When the going gets tough and businesses need funding, banks back out of the market and refuse to lend. The strict affordability tests from banks are inflexible and leave many small businesses in the lurch. Cash is the lifeblood of small businesses and banks are failing to provide the necessary support.
Fintechs are however stepping up to fill the gap left by banks and are providing alternatives for smaller companies. Advanced technology is enabling deeper analysis of their trading history, giving them a better chance of being accepted for credit. It also offers alternative finance schemes such as deferring payroll, helping companies to boost their working capital and release pressure on their cash flows.
It’s no wonder that firms are deserting the banks in such big numbers in favour of fintech partners which actually value their business and help them during their time in need, rather than the banks which pull up the ladder behind them.
Founder and CEO of Hi