The Growth of the Financial Technology Sector and What is Invoice Financing?

It’s a new wave of how things get done – how business solutions are found, handled, and executed for the betterment of potentially surging companies – asset based lending, invoice financing, is a unique platform that provides the ability to procure and access funds not initially available to businesses due to or because of lethargic payouts, thus making receivable funds through sales and exchange.

Invoice Financing is a painless venture that bolsters a wherewithal opportunity for businesses as a legitimate business solution and timely answer to a potential problem. Here’s how it can work: Prospective sellers can usually go online and register by providing the appropriate details of the business. This first part will include documents that support what the business is doing and is about.

Next, once qualified, the business will then be able to upload invoices through the platform provided by the host and then verification of invoices takes place; a discount rate is then set. Again, painless. From there investors can bid on the invoices and provide cash advances for needed businesses.

Once done, the seller will receive a cash advance within twenty-four hours – it really doesn’t get any simpler than that. Right? Painless platforms and simple solutions at hand, fingertips really, and ready.

With the struggle of cash flow that is systemic in SME’s, much needed innovations were a necessity before entities ultimately fell victim to debtors and the pain-staking slow drawl of receiving much needed revenue. Contactless payments and crypto currencies are examples of how technology is making financial services more efficient.

See, the problem that lies within SME’s is that they do not and cannot necessarily wait to be paid for a job in order to do a new job – that cash flow from a previous job or order, service or work, may be needed to procure the next. This is the rub of the situation, the hiccup to the financial strand of seamless revenue that hinders SME’s. Fortunately, financial technology has come along to aid where the normal and more common means of bank assistance consistently has fallen short, this is why whether it’s small business or an SME, services such as Trade Finance are an absolute necessity, it’s the best way for a business to improve their cash flow.

Banks are unwilling, and thus the growth of SME’s are either halted or stunted. Another potential source of revenue and cash flow is through crowdfunding and crowd sourcing. More and more companies, as well as individual entities, are turning to “funding” as a way of producing their product or offering their service.

Crowdfunding is an interesting combination of the old and new as the “old world” idea of a patron is meshed with the limitless capacity of the internet and online world/platforms to create a “crowd” that given the idea and product and possibility, may very well want to provide the means by which the venture comes to fruition.

That’s what this modern era is about – the openness of the free market and how there are so many vast and varied ways of finding the best financial solutions for business endeavours. The financial tech sector in general is a booming entity bustling with opportunity and potential – ways to improve matters of finance ranging from accruing monies to lending to investing – all ways that foster growth financially.