Fintechs Becoming The New Lines Of Credit

Small businesses have been suffering from the trade finance gap since the world plunged into the Covid-19 pandemic. And to save them from this problem, fintech has become the right platform to unlock access to finance.

The Fintech platform acts as a marketplace for small and medium enterprises to access trade receivable financing. According to the Co-founder and Chief Executive of Invoice Financing Marketplace Incomlend, Morgan Terigi, it is becoming a lucrative platform that allows investors to provide new credit lines to struggling business houses. 

Through fintech platforms like Incomlend, family offices, high-net-worth individuals, institutional investors are all starting to offer new credit lines to small businesses. The credit lines have become a lifesaver for small businesses as Covid-19 has increased the cost of the entire logistics chain. Businesses require extra money to accommodate basic logistical activities like providing transportation for their products. 

As we know, the territory of providing credit lines was previously manned by banks. But, it is being slowly taken over by Fintech platforms as these platforms have better agility than banks. Terigi says that a bank mostly looks at recourse just to the seller. However, now that the international supply chain is evolving, this approach is no longer applicable. 

Terigi firmly believes that banks will still be active like before - primarily as investors. A new development has slowly been implemented whereby the fintech industry providing trade finance will start to consolidate. Fintechs will share information to improve their offerings. Their only goal will be to provide better trade finances and act as a better alternative to banks for providing small businesses with all the credit they require. 





Other news

Most Recent Blogs View All Blogs

12 May

Top Ways Fintech Industry Is Getting Transformed Through Blockchain

If you are a businessman who is indulged in any kind of trade ie. import-export activity, you might ...

10 May

Fintechs Are Proving To Be A Boon For Small Exporters

Since the global pandemic of Covid-19 hit the world economy, the global traders have gone into deep ...

25 Apr

Letter of Credit Issuance Process - An Important Trade Finance Instrument

Looking for a letter of credit? This guide covers what an LC is, how it works & its process. Rea...

Disclaimer

Emerio Banque is an innovative global financial institution incorporated in England and Wales with Legal Entity Identifier 875500DGPPWAFABBK130. Emerio Banque does not offer its products and services to businesses and/or persons registered in the United Kingdom.

No information on this website should be construed as a solicitation, offer, recommendation, and representation of suitability or endorsement of any security, investment or strategy.

Important Notice

Emerio Banque would like to advise its customers to report any suspicions which they may have regarding the identity of any intermediary who promotes products or services offered by us or any intermediary bearing similar names. You should verify with Emerio Banque by calling our Customer Service Number on +44 203 059 7831 or emailing help@emeriobanque.com

Please also be aware of bogus SMS messages and voice message calls or fraudsters who impersonate the staff of Emerio Banque.

We have recently become aware of a number of entities with different names misrepresenting themselves as associates, partners or agents of Emerio Banque.

Please be informed that Emerio Banque is not associated with nor do we have any business connections or dealings with such institutions.

Emerio Banque takes all information regarding suspicious fraudulent activity very seriously. Please immediately inform us at compliance@emeriobanque.com if you suspect or are approached by persons misrepresenting or impersonating Emerio Banque and/or its officials. We will make investigations and will take legal action where necessary.