Between soaring ambition and middling reality, small-time businesses often find themselves unable to access most formal lending opportunities. It’s these pipedreams that power the country’s economy. However, access to credit has always been their greatest stumbling block. Every ingenious solution, every budding startup struggles to find support through traditional banking. Traditional Banking relies heavily on rigid guidelines: credit scores, financial history, payslips, etc. More often than not, businesses just starting out do not meet such criteria. This inhibits the possibility of business growth and scaling.
In today’s digital world, a modern miracle: the loan app funds these inventive, ambitious dreamers. These turn the budding entrepreneurs’ own devices into resource dispensers. Such is the appeal of doing away with the winding queues and crushing piles of paperwork that these are gaining popularity and fast. Credit is no longer only accessible from behind a bank counter. With the advent of the loan mobile app, borrowing is but a few taps on your phone screen. These increase access to financial services for those living even in remote, far-flung areas or those in rural, underdeveloped locations.
The ability to access loan money online has transformed the lives of these ambitious entrepreneurs by allowing them to :
- Access microloans for working capital required to fund smaller projects and ventures that are still finding their footing
- Cash-flow support to tide seasonal businesses over for the off-season months
- Flexibility to tailor repayments to payment cycles, reducing pressure to conform to a rigid structure
- Growth without delay due to same-day disbursements via the loan app online
- Minimal Paperwork with almost completely digital onboarding, speeding up the processing of a loan
- Equip these businesses with online payment options, streamlining income
- Reduce reliance on often punishing, unstructured, informal lending systems
- Boost their credibility by aiding their credit scores
- Bolstering stronger financial literacy by introducing built-in repayment trackers and reminders
- Enhancing fiscal responsibility by improving the transparency and clarity of the loaning process
- Improving a business’s ability to weather unexpected crises such as the collapse of supply, a surge in demand or a sudden requirement for funds
- Providing a financial cushion for businessmen during times of recession, when other channels of moneylending, both formal and informal, cannot come to their aid
Digital lending may just be the showstopper in the fiscal landscape of a growing economy and an evolving workforce that wants to experience life and experience it NOW! They are not just financial systems but means to encourage progress. By promoting transparency and on-time repayments, the loan app fosters trust between users and the platforms. This, in turn, leads to situations where users feel empowered to make fiscally responsible choices. The impact of thriving small-time commerce positively impacts society at large. It strengthens the “buy local“ sentiment. It also creates more jobs locally, bolstering the economy by increasing productive contributions to society. Communities often grow together, the progress leading to the upliftment of an entire section of society. Supply chains function more efficiently and smoothly. By allowing grassroots entrepreneurship to access otherwise denied resources, digital lending allows for thriving, not just surviving.