Technology has revolutionised business as people know it. From information gathering to communication, marketing to conducting meetings and conferences, there’s no doubt that technological advancements have changed the way we run our companies. But, how has it revolutionised business financing in particular?
It’s easier to get a business loan
While a business seeking a loan will still have lots of hoops to jump through, technology has revolutionised the way companies secure capital. The application process is far smoother, for one thing, with many entities giving out business loans online. Applicants learn within hours whether or not their application has been accepted or rejected, and funds can be transferred in a very small window of time.
>See also: Open banking: a financial revolution?
Moreover, there’s greater choice than ever thanks to the internet, with businesses seeking the best deals from all over the world as opposed to their local banks. And, it’s far easier for businesses and lenders to get the information they need in order to make a good choice regarding business loans as credit scores are reviews are easily obtained online.
It’s cheaper to run a business than ever before
As well as thinking of business financing in terms of seeking loans or investment, leaders should think about business financing in terms of what it costs to actually run a business on day to day basis. Technological advancements have revolutionised this, eliminating the need for businesses to maintain large offices where employees are permanently chained to their desks.
Instead, instant communication, cloud software and interconnected applications facilitate remote working, meaning that businesses can reduce their overheads by encouraging their team to work from home or anywhere else in the world. This reduces the cost a business incurs when financing office space, internet provision, equipment, utilities, and insurance, for example.
Reducing the likelihood of human error or fraudulent activity
Technology can also help to improve business financing by safeguarding against human error and fraudulent activity. For instance, voucher checks from providers such as QuickBooks ensure that businesses are able to pay their staff on time and to the correct amount without running the risk of incorrect calculations or internal fraud.
All of this serves to improve a business’s bottom line, revolutionising a key element of its finances.
Decreasing costs and increasing functionality
Finally, the hardware and software necessary for businesses of all sizes to keep a careful eye on their cash flow, profit margins and taxes is becoming ever-better thanks to technology.
Gone are the days in working offline in spreadsheets and books. Nowadays, sophisticated accounting technology has replaced these outdated, time-consuming and error-prone methods with revolutionary tools.
This means that businesses no longer need to pay for the services of an expensive external accountant. Instead, in-house accountants can be helped to work more efficiently and productively than ever before. It is quite clear, technology has revolutionised business financing. What might be next?
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