2020 saw a shift to a new paradigm driven by collaboration between traditional lenders and new-age fintech companies. This article will shed light on the topic and tell you why payment specialists like eMerchantBroker can best help you with merchant services.
eMerchantBroker Services & Fintech Lending
In recent years lending to riskier segments has risen to a significant extent. The reason has to do with the venture funds invested in fintechs.
Be aware that traditional NBFCs’ (Non-Banking Financial Company) unsecured loan disbursements declined by 70% because of COVID-19. Another reason had to do with private banks lending mainly to their customers. Apart from this, they increased income cut-offs for customers applying for financing so to be able to get loans.
COVID-19 has also resulted in a vivid rise in contactless and paperless lending. What about your financial situation? Do you need a reliable business funding provider that can help you with cheap financing? What about secure and cheap merchant processing services? These can’t be an issue if you work with a respectable merchant services provider like eMerchantBroker.
Fintech Lending to High Risk Segments
Fintechs have made a real revolution in the banking industry. Fintech lending to high risk segments has grown in recent years. To approve an applicant for business funding, fintech lenders say they pay attention to factors like utility bills or rent payments to figure out whether the given applicant is eligible or not.
Today, when people and businesses are faced with COVID, economies worldwide fill the enormous impact of it. Employment levels and the profitability of small and medium enterprises (SME) are going to fill the dramatic impact of COVID-19 a longer period of time.
The risks caused by the current economic crisis create a new, unprecedented situation for merchants. This results in an increased need for business funding and a surge in fintech lending. This is mainly because fintech lenders are subject to less regulatory scrutiny.
So, the popularity of fintech lenders has been growing in recent years, especially now, when almost everybody is severely affected by COVID-19. Fintech lenders use the most advanced financial technologies to streamline the out-of-date and non-transparent process of lending. This allows lenders to offer personalized experiences, taking into account each borrower’s financial needs.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.