FinTech Solutions For Enhanced Income and Economic Growth

Small business plays an important role in innovation and employment, so financial mechanisms that make it easier for small business to grow must be welcomed.

P2P Business Lenders are intent on improving small business financing options by connecting investors (i.e. lenders) with a choice of loans in a digital market place. Much like an eBay for small business loans or a match making market.

P2P Business Lending is about using technology to make what was once unviable, viable.

This article looks at emerging innovators ThinCats and True Pillars as a source of funding for small businesses and enhanced income for professionally managed SMSFs.

Technology Makes Small Loans Affordable

Small business loan sizes make acquisition, assessment, fulfillment, and credit management, uneconomical.

That is, unless technology and traditional credit management know how are blended together intelligently.

Pre-qualified small business borrowers are brought together with investors online. But an eBay style mechanism would not work for small business loans without a smart loan management engine and a team with deep credit management experience.

Beware the digital market place driven solely by algorithms – a real credit team is crucial.

Investors can review the loans on display online and invest in the ones they like.

Win/Win – Always Exercise Prudence

It can be win/win all round so long as investors understand the risks involved and ensure they do not invest too much in any one loan or in any single asset class for that matter.

Diversification is a principle that should always be observed.

The P2P Business Lender is responsible for supplying sufficient loans for adequate diversification.

To read more, click on the link below…

Source: FinTech Solutions For Enhanced Income and Economic Growth – Commentary – Share Cafe