In France as elsewhere, VSEs and SMEs form the backbone of the economy. However, despite their crucial role, they encounter many obstacles in terms of funding. In this context, fintechs are presented as a major transformation lever.
The financial difficulties of VSEs and SMEs
It is no longer to be demonstrated that access to financing remains a route strewn with pitfalls for small structures. As a result, the main brakes encountered are restricted access to a credit banking and rigidity and length of procedures.
Added to this are the treasury problems stretched. Customer payment delays, incompressible fixed charges and the impossibility of negotiating supplier deadlines weigh heavily on financial balances. In the end, a discrepancy persists between the concrete needs of these companies and the solutions offered to them by the traditional banking system.
How fintechs revolutionize funding
Faced with these blockages, online banking solutions offer fluid, connected and often more inclusive alternatives. They aspire to restore financial agility to small structures thanks to technological innovation.
Alternative financing solutions
Unlike conventional banks, technology -oriented banking solutions use smart algorithms and behavioral data to assess credit risk. They thus adapt their offers to the reality of each company, even those which do not enter the usual boxes.
We are also witnessing the rise of crowdfunding (crowdfunding) and the loan between individuals (Peer-to-Peer Lending). These models disintemented funding and allow a community of investors to directly support the projects carried out by very small businesses/SMEs.
Smaller payments
Thanks to electronic portfolios, instant payment solutions and Buy Now Pay Later models (BNPL), companies can better manage their cash, avoid overdrafts and smooth their expenses. Thus, payment times are more reduced and transactions become more fluid.
Smart financial management tools
Digital banks are gradually developing platforms incorporating automated accounting functions, intelligent budgeting and automatic revival of invoices. These save precious time, better anticipate cash needs and avoid unpaid.
Open banking and data power
Since the entry into force of the European PSD2 directive, financial start-ups can access companies’ banking data with their consent. Thanks to this opening of data (Open Banking), they are then able to analyze in real time the financial flows of a company and to offer personalized services.
The use of predictive analysis allows them to anticipate financial risks, recommend corrective actions and improve decision -making. Clearly, data becomes a real strategic lever for stability and growth.
Impact on traditional banking and future prospects
Aware of this undergoing transformation, conventional banking establishments do not remain inactive. Many people associate with fintechs or develop their own digital services to meet the expectations of an increasingly digital customers.
In the future, we can expect the emergence of financing solutions based on blockchain, guaranteeing transparency and traceability of operations. In addition, artificial intelligence is continuously perfected to offer even more personalized and secure experiences.
By redefining the rules of professional financing, fintechs offer VSEs and SMEs solutions that fill the gaps in a sometimes too rigid banking system. They enrich the existing offer and pave the way for a more inclusive, agile and resilient finance. This initiative opens the door to new tools and makes it possible to envisage technology as a strategic ally.
