New SME lending solution gives FinTechs added value proposition – providing SMEs with fast and flexible loans
London, 4th June 2018 – Whether it’s a short-term loan to cover the purchase of new equipment or a longer-term arrangement to help expand into new markets, businesses – small and large – need cash. But, following the financial crisis, mainstream lenders appear to remain nervous, leaving SMEs with limited options for financing. Tackling this challenge – and giving FinTechs an added value customer service with revenue opportunities – Saxo Payments Banking Circle has launched Banking Circle Lending today at Money20/20 Europe.
The latest research from Banking Circle revealed that many SMEs applying for finance have experienced difficulties in borrowing from their usual bank. Interest rates and fees were the biggest concern. The speed of response was also a challenge. However, over half (58%) said they would be encouraged to seek finance from a non-bank if it offered lower interest rates.
Anders la Cour, co-founder and Chief Executive Officer of Saxo Payments Banking Circle believes this identifies a clear opportunity for FinTechs to add value to their customer proposition – as well as build a new revenue stream.
“FinTechs and banks, many of which are servicing small and medium sized businesses with payment solutions, are in the perfect position to deliver a solution that will overcome the barriers faced by their merchants when it comes to getting quick access to funds for growth. And Banking Circle, which handles the non-core banking functions on behalf of FinTechs and banks, provides an easy to implement solution that will not only enhance customer relationships but generate new revenue. And it does it quickly – rather than the average 60 days it takes a traditional bank to extend a new loan, the entire application process takes up to 72 hours with Banking Circle Lending.
“Plus, crucially, Banking Circle Lending goes to the heart of the challenges often faced by SMEs when seeking new finance. The ebb and flow of an SME business can make a commitment to new borrowing daunting – will they be able to afford the monthly repayments? However, with Banking Circle Lending, the amount that needs to be repaid is flexible meaning it can be a fixed repayment or a flexible percentage so that when business is good, payments increase; when there is a drop off, payments can be reduced.
“We believe this makes Banking Circle Lending a genuine solution for SMEs.”
About Banking Circle Lending
Banking Circle Lending is all about quick decisions and flexible repayment options. Rather than the average 60 days it takes a traditional bank to extend a new loan, the entire application process takes up to 72 hours with Banking Circle Lending.
Through Banking Circle Lending, FinTechs and banks can give merchants faster access to cash, with flexible repayment options and personalised online account management.
The FinTech or bank is provided with a Banking Circle Lending API, to integrate into their own website, creating a seamless, own-branded credit assessment process. Merchants can then use the FinTech’s website to find out if they’re eligible for a loan.
If the merchant is eligible, the loan is deposited into their account as soon as the next business day.
- Key benefits for Merchants
- Quick and cost-efficient access to money to support business growth
- Fast online application process
- Quick approval process
- Flexible repayments – repay a fixed amount or a flexible percentage
- No hidden costs
- No application or closing fees
- No fees for early repayments
- No compounding interest
- 24/7 access to loan status, bank account overview and renewal requests