Tech Advances - Making Loans Easier?
Written on the 16 August 2019 by Nathan Drew, Fox Finance Group
New Fin-Tech Advances - Is This Tech a Good Thing?
The rise of Fin Tech lenders has been slowly increasing over the past 5 or 6 years. Some of the Fin Techs have seen extraordinary growth by bringing something to the market that the big banks just weren't.Fin Tech's largely started off offering business loans to SMEs but there are now many more players in the market offering personal loans and home loans to consumers.
Fin Techs have played a huge role in bringing technology advances into banking and making it easier for consumers and SMEs to gain access to a loan through a smooth, transparent, hassle free, cloud base online business platform.
For consumers and SMEs alike, having the ability to quickly access and apply online to a number of business lenders at once is very tempting. But is this a good thing? Our experience tells us that it's not necessarily a good thing. Our team deal with a number of customers every day that have destroyed their credit file by clicking away with multiple personal loan applications online thinking that this way they will be able to sit back and see who comes back with the best deal. If you want to learn more about why this isn't a good thing and what lenders think of your credit score, follow the link.
Here are a few scenarios of people and businesses that we've helped with loans recently.
Type of loan: Personal loan
Type of loan: Car loan
Type of loan: Home loan
Type of business: Retail Operation
Type of business: Equipment Hire Company
Type of business: Café
In a nutshell, SMEs that qualify can get access to amounts of between $10k - $500k over 6mnth - 36mnth terms. 100% Unsecured, in some cases with no set up fees, no ongoing fees and no fees for early repayment. Now that's good news for any business.
Some loans can be assessed based on providing a link to your business's main transaction account bank statement alone which can be simply supplied electronically at the time of application. Again, this is another improvement on how you can safely and securely provide your income details to the lender in the push of a button.
For larger business loans, the use of cloud base accounting platforms such as Xero and a host of other cloud-based accounting software companies like MYOB, Quickbooks etc. allows the Client to share the necessary information to assess their application in minutes. This could include your up to date Profit and Loss and Balance Sheet. Again, this happens within a simple online process and once all of the information is provided, a decision can be made within minutes on whether a loan is able to be approved.
Our SMEs borrow for things like:
Cashflow to manage working capital
The list of industries and businesses that can gain access to this sort of funding is very broad so please speak with us if you'd like to know if your business qualifies.
If you would like to know if you personally, or your business would qualify for a loan, our team are ready to speak with you now on 1300 665 906. There is no obligation to complete an application, we are simply here to answer any of your questions and if you like what you here then you can make the decision then to proceed. If not, no hard feelings.
Author: Nathan Drew, Fox Finance Group
About: CEO - Fox Finance Group