Fintech has a role to play in SMEs’ post-pandemic recovery

SMEs have had a rough couple of years and because of the pandemic it added further turmoil. Whilst some sectors like e-commerce have boomed, more broadly SMEs have been badly shaken. Profits have been slashed, customers lost, and numerous companies have had to furlough staff or resort to making people redundant. Together, this has diminished the growth outlook for many small businesses.

Lending platforms

SME requirements around lending have changed. A company might want a short-term ad-hoc loan to cover a lull in the summer months or small cash injections throughout the year to bolster growth. This is impossible with traditional loan providers, but an area where new lending platforms can help. With these lending marketplaces, SMEs will be able to access products from many third-party providers and find the best solution for them.

There are plenty of challenges on the horizon for the small business community. However, the gap in SME banking is being bridged thanks to Fintech.