Wesley Rashid and Asima Hafesjit, co-founders, The Accountancy Cloud
The Accountancy Cloud
Chatham House Rules, whereby what’s spoken in a meeting or forum can be repeated, but sources of the information can’t be disclosed, can be a very irritating imposition for journalists trying to cover an event.
However, information discovered and researched as a result of such a forum are fair game. Last week was one such time when, in a city whose identity shall remain as anonymous as the attendees, several stakeholders were invited to a roundtable discussion to explore FinTech and blockchain; how the old can work with the new to improve cash flow for small to medium enterprises (SMEs).
Startups were high on the agenda, as they have been through most of 2019 as traditional banks finally realise this sector of the economy has been woefully overlooked.
Some surprising facts emerged, for example, one source cites a survey revealing 60% SMEs are not interested in growing into larger businesses and would go so far as turning down credit to avoid growth.
There are several reasons for this, not least the scandalous time it takes for SMEs to be paid by their (generally larger) clients. Why should any business wait at least three months to be paid for work already completed? This results in restricted growth and restrains the backbone of any country’s economy.
FinTech startups are addressing this anomaly, opening other ways for SMEs to operate and while challenger banks are good news for SMEs, another less widely-known aspect of FinTech is also bringing great benefits