The very best from among them will
insist to just engage an accountant
who will offer them with templates of
spread sheets but will have no idea as
to what to do with the data.
Information is the one most
important input used by funding
institutions when transforming their
deposits into loans. This financial
information availability among small
business is the main challenge faced
by both suppliers and demanders of
funds. Development banks are even
more affected as oppose to their
commercial bank counterparts due
to the advisory and development
functions
bestow
upon
them.
Finding the optimal profits requires
balancing profitability and customers’
developmental costs.
MANAGEMENT SOLUTION
Many from among the micro and
small business owners embrace
the importance of record keeping
but postpone it until the time is
‘right’. Convincing small business
owners – especially those under sole
proprietorship – of the importance
of keeping financial records is a
challenge. Try telling them that
this information will assist them in
planning for their future growth, help
them identify spending patterns that
needs to be control or even help in
saving further losses in the event of a
bankruptcies exercise.
Financial institutions can choose
to ignore these prospects from
among small business owners and
remain conservative in their lending
practices. However, this will present
a loss of opportunity to increase their
client base.
Perhaps the most creative
lending technology introduced that
is disrupting the financial services
industry is the financial technology
or FinTech’s solutions. Companies
offering FinTech services have
developed a small, nimble softwarebased providers in extending the
financial services. Their systems
facilitate record keeping where
tenac