The Role Of Technology In Shoring Up Small Businesses And Startups
In a world still going through a rapid technological transformation, it’s hard not to reject any notions of stagnation. The banking system and the lending functions, in particular, have seen an overhaul in recent times. They’re still being updated every now and then to match the market needs and ease up on human input while finding more ways to expedite processes and save time.
Below are some of the ways in which this is happening and the benefits these developments are bringing on board in relation to small business loans for startups:
Better and Easier Borrower-Lender Connection
Take a moment and try to imagine how lending institutions related to borrowers just about 50 years back, and you’ll appreciate just how much the relationship between borrowers and lenders has improved. Today, most lenders have an established online presence, and that makes it pretty easy and fast for a borrower to dig up any information they need about a lender from the lender’s website, online forums, professional networks like LinkedIn, and other social media platforms like Facebook and Twitter.
With this easily accessible and credible information, you’re in a better position to make an informed decision on whether the lender in question can satisfy your financial needs way before you even decide to contact them or apply for a loan to boost your startup. That’s definitely a positive aspect that saves you both time and money.
Improved Loan Application and Processing Efficiency
In the past, borrowers needed to present themselves in person for a one-on-one discussion with the lender about their installment loan request. However, this has now changed for the better. A startup or a small business owner in need of a financial “top up” can just head over to the lender’s online portal and submit their loan application.
In effect, this new development saves the time that would have otherwise been used in office meetings between the two parties. In fact, you can use the saved time in performing other important tasks to build your business. This makes the lending process ever more appealing and convenient to both the lender and the borrower.
Easy and Quick Assessment of Creditworthiness
In recent times, lenders would use personal credit scores to determine a borrower’s eligibility for loan approval. However, this method was unsatisfactory and often wrong with negative results. The advent of advanced technology targeting the banking and lending system or sector has brought with it a new effective metric system to achieve the assessment objective with much ease and less error margin.
Using an advanced data mining and processing metric system, lenders can quickly determine your creditworthiness using a variety of authentic data points obtained from various credible sources that include:
- Your FICO credit score.
- Your business transactions and cash flow estimates.
- Available public records relating to your finances.
- Your field of operation and market capitalization.
- Your online banking records.
This rigorous process makes it certain that the people qualified for loans are in the best position to pay back. In effect, it fosters trust between the two parties and consequently leads to more cooperation in propping up small business enterprises and startups that need funding to properly break into the market. As an involved party, you get to greatly benefit from this favorable development. This is how technology can bring you lots of fortunes – not to mention that a good FICO score affords you loans at lower rates.
This planet was once a huge expanse with numerous geographical locations seemingly far-flung from each other. For example, if you happened to live in the US, the only way to get to make a deal with someone in Europe was to cover the distance. For instance, it was impossible to get a loan from a US bank with no branches in the US if you were in the US. This made it difficult for small businesses and startups to access a larger pool of options for loans with competitive interest rates.
This limitation has been done away with since the introduction of high-end technologies in the banking and lending sector. As of now, every lender out there has established an online presence that enables people from various backgrounds to know about their services. In fact, some lenders are exclusively online-based. With the click of a few buttons, a borrower can apply for a loan at the lender’s online portal, get the application quickly processed, and have the loan money deposited in their online account like PayPal.
Online lending has globalized the borrower-lender relationship and broken the geographical barrier whereby it’s no longer a requirement for the two parties to be within the same geographical area. This has further helped with the integration of the global economy, with small business enterprises and startups as the main benefactors.
Improvement in record keeping, Security, And Administration
Long gone are the days when everyone used paper files for information storage. While some corporate entities still keep a few of those, the whole information is compiled and stored in a database. With a database, the information is better organized and easily accessible. Reports can be generated much faster than before.
In security matters, it’s a general agreement that keeping important data in soft copies in protected computer systems is far more secure than storing it in a file gallery reminiscent of a highly vulnerable traditional granary. A computer network secured with a good firewall and excellent security features and applications can go a long way in ensuring information security. You would definitely hate to hear that your bank got broken into and your physical files stolen – knowing that they may contain confidential information.
In business management, technology has revolutionized decision-making. A manager doesn’t have to be physically present in the office to review or approval a loan application. They can actually access the workstation from wherever they may be. That’s a great step!
Looking at the above-mentioned points of interest, you realize that technology has a really huge role to play in the financial market. Such systems are truly the future of business loans.
Your Business Needs These 13 Digital Security Solutions – Here’s How To Get The Most Out Of Each
How would you characterize your organization’s digital security posture? If you’re not sure how to answer this question, or perhaps would prefer not to answer it at all, you’re not alone. Countless decision-makers, from uber-competent CTOs and CISOs to CEOs and COOs who couldn’t code…
Louisiana And Oklahoma Introduce Digital Identification To Prevent Fake ID Use
Digital ID in Louisiana Utilizing digital IDs has been a commonly broached topic for a while now. Although most states are only either deliberating their helpfulness or in the utmost initial stages, Louisiana has moved forward. The primary introduction of this technology was done back…
ScanGuard Review – Here is What You Should Know
Doesn’t it sound good and satisfying to have a goop-performing antivirus that is reliable enough? Yes, it is. For that reason, you need to be extra careful when you are in search of a good antivirus. Put all the necessary factors into consideration so that…
The Emerging Need for Social Media Security
By the time you’ve finished reading this sentence, nearly 700 passwords have been stolen from social media accounts across the world. Social media security breaches have the potential to cause up to $6 trillion in cybercrime damages by 2021, up from $3 billion in costs…
Which New Lorex Security Camera Is Right for Your Home?
Keeping your family and your possessions safe requires a proactive approach, and one way to protect what you care about is with a security camera system. Lorex Technology is well known for their security camera solutions, and their two newest products will change the way…
- 3D Printing
- App Dev
- Artificial Intelligence
- Arts and Entertainment
- Big Data
- Blockchain Tech
- Business Technology
- Car Technology
- Cloud Computing
- Cloud Storage
- Computer and Technology
- Conference Calling
- Coupons and Deals
- Cyber Security
- Dark Left 1
- Data Center
- Data Recovery
- Digital Arena
- Digital Marketing
- Edu Tech
- Email Marketing
- Google Glass
- Guides and Tutorials
- Health and Fitness
- Home Improvement
- Home Security
- Internet and Businesses Online
- Internet Marketing
- IT Careers
- Mobile Apps
- Mobile Security
- New Tech
- Online Shopping
- Project Management
- Reference and Education
- Reputation Management
- Sales & Marketing
- Shopping and Product reviews
- Small Business
- Social Media
- Tech Trends
- Technical Support
- Technology in Education
- Tips & Tricks
- Tips And Tricks
- Video Conferencing
- Virtual Reality
- Wearable Technology
- Web Design
- Web Development
- Web Hosting
Future Online Gaming Trends To Keep An Eye On
With a rapidly and constantly evolving world of online gaming and fresh technologies that are being developed on a constant basis, there is no telling what the future might hold. Or can we? One thing is sure: industry giants do not hesitate to invest millions…
How Retiring Entrepreneurs Can Ensure Steady Income
Running a moderately successful business gives you access to enough income to sustain yourself, whether you’re paying yourself a salary or are relying on annual profits generated by the business. But since you own and run the business, you won’t have access to an employer-sponsored…
How To Become A Cyber Security Analyst
What is Cyber Security? Cyber security is the practice of protecting a system or network from digital attacks. These attacks are generally aimed to retrieve or destroy sensitive information and it is a serious threat to all the organizations. Who is A Cyber Security Analyst…
Internet Security Tips For The Modern Age
The internet is no longer new. It’s been in most peoples homes for twenty years or more now, and we’ve all come to accept it as part and parcel of modern life. When it first began, it was something that we only had on our…
How to Immediately Improve Your Online Security
While the internet might seem paradisiacal, danger lurks in the obscurity of it. Apart from outsourcing your IT needs to specialists like IT support companies in London, there are immediate measures you can take to ensure your online world is as secure as the home…
Everything You Need To Know About Cybersecurity In 2019
With long workdays and jam-packed weekends, it’s a godsend that we can do most of our shopping, social interaction, and many other day-to-day tasks from the convenience of our computers and mobile devices. The internet has been making our lives so much easier for the…