The business world has been going through the most challenging phase. Ongoing pandemic, continuous lockdown, the falling world economy, and many more are the consequences they face nowadays.
Getting back on track seems an arduous task for them. Things are going to be challenging, but at the same time, there is always a hope of improving circumstances.
How will the circumstances improve? Of course, answering this question is also tricky. There might not be a definitive solution, but a much-needed financial suppose is apparent to save the business world.
In the UK, businesses have been confronting with a sudden downfall to their revenue. They are struggling to attract new customers but sustaining the existing ones becomes difficult too. Losing the trust of customers is another challenge that stands ahead of them.
When it comes to financial support, the FinTech Market of the UK can do this for the business players. Yes, it has the resources and a helpful blend of traditional and modern-day lending. The business owners can approach any one of them to calm down their financial emergencies.
Financial+Technology or FinTech is what the demand of current times. It means lenders are providing loans through the online platform, making it easier for the borrowers. You have to apply for loans on the lender’s website and get the desired funds through an online bank transfer.
Such a method has come as an alternative for conventional lending where too much time is taken to grant a loan. On the other hand, the modern-day lenders, or we can say online lenders are quick to their process, and they ensure quick fund disbursal to the bank account of the borrowers.
Here are the benefits of FinTech Lending:-
Indeed, there are many such benefits of FinTech Lending for start-up businesses. Remember, you have to be extra cautious while choosing the loan deal. It is the question of business funding, and therefore, availing an amount more than your capacity can harm your credit score.
The next question arises: what are the products that FinTech lending chooses to help the new businesses?
In this blog, we will discuss three lending products that online lenders bring for business aspirants.
It has been founded that the demand for short term loans with no credit check option has increased a lot. It is primarily for the last one and a half years.
Short term loans because businesses cannot invest in their larger projects due to their survival issue during the pandemic. No credit check because lack of enough funds causes late or no payment of their pending dues. It directly puts their credit score into the bad category.
The traditional lenders do not entertain those business owners who have a less-than-perfect credit score. They are more worried about the repayment capacity of the borrowers. FinTech lending, on the other hand, seems interested to fund their needs.
It does not mean that online lenders offer short-term loans for new businesses without worrying about the repayments. They also insist on the proper repayments and provide loans only on the repayment capacity of the borrowers.
The only difference between the traditional and modern lenders is the FLEXIBILITY. The FinTech lenders have shown flexible lending norms where credit score does not matter.
If the recent financial performance is up to the mark, then the lender may offer loans with no credit check too. However, the interest rates might be on the higher side, and the amount is small to be used only in an emergency.
Here are the benefits of the short term loans with no credit check for the new businesses:-
In the previous point, we discussed the short-term funding for the new businesses. Now, it is the turn of long-term business funding.
Pandemic doesn’t need to generate only financial emergency and the need for a small funding. As the business owner, you certainly like to expand your commercial wings. For this, you need sufficient funding for your bank account.
Long-term funding may not be possible for people with bad credit or those who do not have a guarantor. If not a guarantor, why not a co-signer or co-borrower? Yes, the FinTech Lenders have brought an arrangement to avail of long-term funding despite poor credit.
You can apply for joint loans for new businesses. In this, you can submit the loan application with your partner as the co-borrower. The partner can be your spouse, friend, or colleague whose credit score is good and no bank default against his/her name.
Joint loans for businesses give equal financial benefits to both the borrowers. At the same time, it puts an extra burden on the co-borrower to repay the loan if the primary borrower defaults. Therefore, having the repayment capacity of any of the two borrowers is crucial.
Given below are the benefits of joint loans for business:-
Another lending source that FinTech Market in the UK brings for the small businesses is debt consolidation loans. These are very useful especially after the aftermaths of the pandemic.
Many businesses, irrespective of their sizes, are facing the problems of pending debts. They do not have enough funds to get rid of them and later struggle with their credit scores.
Consolidating all debts gives them relief and they can plan for business growth ahead. The fascinating thing is that some FinTech lenders have added more features to ease the scenario for small business owners.
For instance, if you search the online lending market, you will find out the lenders offering debt consolidation loan for bad credit with no guarantor needed.
These are very rare loan deals but effective in countering the financial emergency. You can pay out all debts in one go with a single interest rate to pay. Your poor credit score does not make too much impact, and the absence of the guarantor does not halt your loan approval chances.
Here are the possible benefits that you get with debt consolidation loans:-
FinTech lending has brought the right funding platform for small businesses in the UK. The most significant advantage for the borrowers is that they do not have to approach the brokers to get a loan deal.
The business owners are already going through a financial emergency. Approaching any middle person will be time-consuming and can take a lot of money from your pocket. FinTech lending or online lending has minimized its need, and you can directly approach a lender offering suitable loan deals.
Therefore, your business may have many challenges to go par with. Yet, you have the way as FinTech lending and its modern lending products with an advantage of Flexibility.