There are all sorts of businesses in the corporate world these days, and when it comes to the overall economy, it is believed that smaller businesses and enterprises are the backbone of it. It’s not just the giant, world-leading corporations that matter the most, because, without the smaller businesses, they wouldn’t be able to survive for a long time, as you can learn by taking an online business course as the ones you have here: https://www.onlinecourserank.com/best-online-courses/for-business/
One of the main goals of running a business is to make a profit, and increase your revenue slowly as time goes by. This is done by selling something, whether a service, a product or legal advice. No matter what you are selling, you must get paid, but sometimes getting paid is not as easy, even though that’s what we would all like.
In this article, we are going to talk about some of the issues that smaller and medium enterprises face when it comes to cross-border payments, so if you are currently seeking knowledge in this area, or you are simply interested in what we have to say, why don’t you stick around with us until the end of this article? Let’s take a look.
The struggle of Small and Medium-Sized Enterprises
According to Eyal Nachum, the financial technology Guru and board member of Bruc Bond, currently all smaller and medium-sized enterprises, also referred to as SME’s, are in a very tight spot when it comes to getting all of their banking needs met. This can also be confirmed by other financial experts, and according to them, this is especially true when we’re talking about SME’s and cross-border payments.
Now, just as we mentioned earlier, when SME’s are in such a difficult situation, the entire corporate world suffers because they are the backbone of the economy, and although they’re smaller, they play a crucial role in the entire business-field.
Eyal Nachum says that the banking industry at the moment is in a small crisis, and this can be confirmed by the fact that from 2008 to now, the number of banking employees managed to drop from 3,3 million to just 2,7. This combined with the fact that all banking branches also trimmed down from 240 thousand to 183 thousand is more than enough evidence to confirm what Eyal is trying to point out.
Financing is heavily required
When an SME is in a tight spot, they usually require financing to be able to continue with their existence. The truth is, SME’s are dependent on banks and larger businesses, but banks and larger businesses are also pretty dependent on SME’s, and it’s an endless circle in which help is required from both sides.
Eyal wants to point out that being the backbone of the economy, smaller and medium enterprises cannot be neglected when it comes to financing and acceptable levels of service, and we completely agree.
Mostly “endangered” are the SME’s that operate in the import and export industry, according to the financial guru of Bruc Bond. Statistics point out that the profit margins in an industry like this one are smaller, and if you are not a large corporation that gets more than enough trading volume, you can’t achieve enough profit to ensure existence.
The main issue
Eyal Nachum points out that the problem lies in the lack of payment solutions for smaller and medium enterprises, and he believes that he has a solution.
“The thing is, all SME’s are desperate to have their respectable payment solutions, while all the banks in the world want to increase their earnings without increasing the workload and adding even more complicated processes that only serve as oil to the fire.
Banks are in a crisis, and that fact is undeniable, but this doesn’t mean that SMEs are doomed, and they can see the light of the day once again by doing the following changes” – Says Nachum.
Fintech as a possible solution
According to Eyal, and many other experts, the solution lies in the NBFI sectors, non-bank financial institutions for those of you that might be unfamiliar with the term.
The NBFI sectors can do what banks do, but more than a couple of times better, and at a much-reduced cost compared to their competitors, which are currently struggling. Imagine being a smaller business and having access to crucial financing and other useful services without having to break your entire economy by paying tremendous fees, it simply allows you to open your horizons and adds many new options.
Eyal says that there are numerous options that you can go for, and some of them are pretty old-school and obvious, such as Western Union, MoneyGram, and similar services.
Things constantly change in the corporate world, and if you are a manager or an owner of an SME, you shouldn’t spend your time being in despair and wondering what to do next because the pressure comes from all sides. Instead, adapt and overcome, and make sure to follow all the latest trends and explore the possibilities to the fullest extent.
And if you need a fintech solution that simplifies your business then Ukrainian-based nearshoring company Mobilunity that provides dedicated development teams for businesses all around the globe will help with this idea.
In the corporate world, smaller and medium enterprises are considered to be the backbone of the economy, but at the moment, they aren’t getting the breathing room that they need to function properly. This is because they are heavily reliant on bank services and financing, and in the past couple of years, banks are in somewhat of a struggle, so SME’s need to turn to other non-financial institutions instead.
According to Eyal Nachum, NBFI sectors can help SME’s get the same quality of service but for a much lower price, and without all the obligations that come along with the agreement of receiving financing from banks.
Those working in the export and import industry are in a tight situation because they cannot achieve enough sales volume to maximize profit, and if you are one of them it might be the right time to reconsider your options.
Trends in the corporate world are constantly changing, so make sure to follow them and try your chances with Fintech, because this is considered to be the future of the business world. If you need Fintech services integrated into your business, let Automated Transaction Delivery help you.