Online small business loan -Small business borrowing: approvals in 24 hours
Small business borrowing: approvals in 24 hours
Over the past several years, the offer has changed mainly. In the beginning, loan services were addressed to large companies and corporations. Each subsequent year brought more and more proposals for smaller entities. Today, companies can apply for online small business borrowing to oakparkfinancial.com. Fifteen years ago this was not possible.
Almost 2 million entrepreneurs operate in the Polish market. According to the data of the Polish Factors Association presented at the end of the 4th quarter of 2017, only 9 thousand they use factoring services. Certainly, therefore, there is a lack of education and popularization of this tool, which – simply put – improves financial liquidity and speeds up payment for invoices. The challenge for each new factoring company is to reach as many small entrepreneurs as possible and encourage them to test the service and show them how it works. Micro-entrepreneurs usually do not know that they can use such a solution.
Until now, large companies have used the help of factors
What about micro-entrepreneurs? Are they afraid to use the factoring service? The SME sector is a segment that is not yet developed. However, it is of great importance for the economy – 90 percent. small businesses generate over 60 percent. GDP. Until now, there were no offers for these companies. Traditional factoring offered by banks in Poland required manual or semi-automatic verification of the client and contractor.
The challenge for each new factoring company is to reach as many small entrepreneurs as possible and encourage them to test the service and show them how it works. Micro-entrepreneurs usually do not know that they can use such a solution. It’s amazing! In traditional factoring, the process of verifying the company and signing the contract takes a while, maybe not so much as the credit procedure, but the initial interview, client verification, and gathering documentation is a tedious process.
How is it possible that the customer can be verified in a few minutes?
All thanks to the automated risk assessment system and anti-fraud system we have built for the needs of this service. The use of artificial intelligence mechanisms in credit risk analysis accelerates the verification process to several minutes. What we have done so far, analyzing all documents, we analyze automatically and immediately. We obtain information from dozens of external databases, including Economic Information Bureaus, and from auxiliary sources, such as social accounts. On this basis, based on the proprietary risk assessment algorithm, we make decisions on funding limits.
The factoring service includes not only financing but also monitoring of receivables and reliable verification of contractors. It happens that the company, when cooperating with a larger recipient, implements the order in stages, initially accepting a small part of it. Submission of the first invoice for financing gives information about whether the contractor is trustworthy and whether it is worth taking from him another large order.
What determines that you grant micro firm funding?
Does the size of the contractor influence the decision? The fact that both sides of the transaction are taken into account in factoring analysis – unlike in credit – can even help a small entrepreneur in obtaining financing. The risk for the factor is not based solely on the small company applying for funding, which often has a short banking history and does not show high turnover or profit. It is also based on a large contractor, who will eventually pay for the service rendered. The credibility of such a business duo is growing.
Almost 2 million entrepreneurs operate in the Polish market. According to the data of the Polish Factors Association presented at the end of the 4th quarter of 2017, only 9 thousand they use factoring services. So there is certainly a lack of education and popularization of this tool.