FinTechs Provide a Trade Credit Bridge Between Banks and SMBs
Small companies have a hard time keeping up with financial and payment advances in the digital age. The development and application of solutions tailored to SMB (small and medium-sized company) digital payment innovation is a problem for banks as well.
FinTech is stepping in to close the gap in the digital economy by creating networks and other solutions.
For instance, the newest payment network from TreviPay, a worldwide B2B payment company, aims to make it possible for banks to support small businesses’ digitalization. With a cloud-based Software as a Service (SaaS) solution, the Small Business Supplier Network (SBSN) gives small businesses the advantages of automation, including increased selling power.
One of the main obstacles is cost. Networks have the ability to speed up small company adoption and increase SMB competitiveness to the extent that they can lower the financial cost of embracing the digital era.
There are a lot of reasons why small enterprises should use contemporary FinTech. Benefits for small businesses, according to the TreviPay website, include:
- Debt-free liquidity, similar to card merchant services but created exclusively for B2B transactions, to assist small firms in reducing accounts receivable and boosting cash flow.
- enhancing small businesses’ cash flow and balance sheets to increase their bankability
- Increased development potential depending on network features like:
- qualifying clients in the business
- Completely online procedures with immediate decision-making
- A different way to swipe a card to approve a purchase
- Getting payments instantly
- A guarantee of payments
- dispute resolution
- payments free of debt
Small companies interested in joining the network may inquire with their financial institutions about availability since TreviPay distributes the network only through banks, which will then offer it as a “white label” option to their small company clients.
The platform, according to the business, enables banks to determine their service costs for SMBs in the range of already offered card merchant services (2% to 6%). SMBs should compare network participation to other providers and bargain for the best price.
There are good reasons for banks to use these services. Due to the poor penetration of payment systems, small businesses provide a significant opportunity, according to the company website.
