Getting financing for a business is not easy, especially if you are starting one. That is why, due to technological progress, new alternatives have emerged for small entrepreneurs such as fintech companies, which offer quick financing to businesses. According to the Peru 2020/2021 Fintech Guide, this industry has grown by more than 200% in the last 5 years, and to date there are 151 fintech in the national market. Learn about this financial proposal and what are its benefits here.
What are fintech and why are they a financing alternative for companies?
The term Fintech is a neologism that comes from the contraction of the English words finance and technology. Fintech solutions are focused on serving small and medium-sized companies that do not find an alternative in the banking system. Or, on the contrary, they want to have profitable and more competitive alternatives to achieve their purposes.
That is why this model has become an option to change the current way of doing business and satisfy a more digital and less verticalized market. In addition, this technology not only seeks to obtain greater agility in the payment and collection process, but also to obtain greater returns in the management of suppliers, as well as in that of the consumer.
Benefits of fintech for MSEs and small entrepreneurs
- Saving: faster and more automated procedures improve business efficiency. An efficiency that translates, specifically in the case of finance, into financial savings.
- Flexibility: this type of technology builds new, more agile workflows. Therefore, they allow you to save data, carry out operations through alternative financing and much more; where and when you want.
- Transparency: Through this innovation applied to finance, the company can manage in a transparent and fast way. In this way, Fintech becomes synonymous with business transparency.
- Efficiency: financial technology is and makes us more efficient. This supposes a great specialization since it offers very specific services. Thus, its high grade has an impact on a high level of efficiency and quality of services, as well as a quick and agile response.
- Analysis: The use of these types of tools improves the analysis of processes, with more detailed information and data. In general, significant competitive advantages can be achieved over competitors who do not use this type of services or platforms.
- Internationality: Often times, the rigidity of the traditional financial sector makes it difficult or slower to manage between different countries. In the business world it is necessary to contact businesses around the world for further growth.
5 types of fintech that provide financing solutions for companies
Bank loans
Fintech companies also provide loans to a company as well as to individuals. Through inclusive assessments that consider the capital need of new ventures, it is possible to access loans ranging from a basic salary to more.
Factoring
It is the process in which a company goes to another factoring company to collect its invoices; so that this entity provides liquidity to the business that requests the service and is responsible for the collection of the invoice. In this sense, the applicant company obtains liquidity and time to dedicate its most useful activities to its business instead of collecting invoices.
Crowdfunding
They are fintech focused on lending money in small amounts by the public, in general in favor of certain companies. Currently, in our country we have 9 crowdfunding fintech.
- Capitalzocial
- Red Capital Perú S. A. C.
- Sesocio.com
- Investments IO Peru SAC
- Dalmano
- Creafunding
- Brideboard
- Lend him a sun
- Inversiones.IO S. A. C.
Leasing operativo
Concentrated on the rental of assets, thereby reducing the investment cost of a company. Likewise, these are accompanied by a service such as technical assistance, among others.
Financial leasing
It is similar to operational leasing in that it allows you to rent an asset and does not involve a large initial investment. However, in this type of leasing there is no service that accompanies the rental, but it is possible to acquire the asset. Through this, a company generates a favorable tax shield for tax deduction.
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Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
