How Open Accounting Can Help Lenders Offer Great Small Business Loans
Small and medium-sized businesses play a vital role in the economic development of a country. They often require funds to successfully run their operations and take their venture to the next level. SMEs need funds for a variety of purposes in their businesses, from buying real estate to paying off debt, boosting cash flow, purchasing equipment, hiring employees, and covering day-to-day business expenses. What are the Challenges SMEs Face When Accessing Funds? SMEs face numerous challenges when accessing loans. First, the application process for SMEs is still a complex manual. Moreover, the paper-based processes and endless documentation requirements of traditional lenders make it difficult for SMEs to get the desired loans Because most small and medium-sized businesses have no or limited credit history, banks are usually reluctant to provide loans to them. How Open Accounting Can Help Financial Institutions Provider Greater Access to SME Lending? Since SMEs represent a major fu