Every individual knows how crucial it is to obtain some amount of money to fund your business idea and grow your company from scratches. SMEs and solopreneurs go through a tough path before community even hears about them. Their businesses and success depend on loans, funds and financial support.
SME loans have become popular these last few years. Studies show that an increase in demand for SME loans is regular year-by-year. Even the lending traditions of large banks are changing. According to the report of November 2018, the approval rating of October 2018 from large banks has grown 26.8% to 26.9%.
What’s so important about the loans?
Loans help small and medium enterprises:
- Meet their business needs and necessities
- Maintain proper operation circulation
- Expand the horizon and win over new markets
- Launch new products, new lines, and sectors
- Pay the salaries
- Purchase new technologies and equipment for the offices
- Use funds for advertising and creating a successful marketing campaign
And that’s not all of it. Money is the cornerstone of business success, and it doesn’t grow on trees.
There are other ways of acquiring financial support: fundraiser, crowdfunding, business angels, savings, etc. But which one seems more realistic and affordable, finding a business angel or borrowing money?
What’s the future relationship between SMEs and financial services?
According to statistical information, given earlier, SME loans are here to stay and grow.
If we ask you right now, you’d most definitely list at least five SME loan types:
- Secured and unsecured loans
- Government business loans
- Commercial mortgage
- Consumer loans
- Peer to Peer Lending
Let’s stop right here and focus on P2P lending. The future of SME loans revolves around P2P lending and blockchain technologies. Peer to Peer lending is funding of business, sourced by multiple investors, crowdfunding platforms, families and friends, etc.
AssetStream combines the benefits of Blockchain technologies and the demand for SME loans and creates a platform that allows everyone to lend and borrow money in a trustworthy community.
AssetStream eradicates the problem of some SMEs being unable to have access to the most-needed funds.
How does P2P future look like?
Acquiring a loan on such a platform is new for everyone, and it might take some time before we get used to it. Imagine a mobile device that carries your micro-financial institution wherever you go. Getting used to it is a mutually beneficial process for both sides (lenders and borrowers).
First, you will need to register on AssetStream platform and create your profile of an SME. The AssetStream platform will be able to give you:
- Ranking (For a business profile)
- Immutable Credit Data
- Low Transaction Fees
It will also give you the information about the lender (ranking, transparency, history) minimizing the risks of scams and bad loan contracts. Your lender might be a local agency (that partnered up with AssetStream), large lending business or an individual lender. The AssetStream community consists of a variety of lenders and borrowers.
Will your SME be able to access financial services?
It actually depends on you and your readiness to be able to step into the new world where AssetStream offers freedom of choice and access to financial tools.