Financial Technology (or “Fintech” for short) is a modern approach to raising finance and competes with traditional methods to provide a wide range of funding options.
Although not a defined term, Fintech covers a whole host of software solutions, including (but not limited to) banking processes, payment processing, record keeping and investment management. In addition, in recent years the use of Fintech platforms to raise finance has become increasingly prevalent. With software becoming increasingly sophisticated and intelligent, Fintech enables businesses to quickly assess their finance options and often provides a wider range of financing solutions.
Whilst the key benefit of raising finance through Fintech is speed and accessibility, there are some drawbacks when compared to traditional methods, as outlined below:
How can Bishop Fleming help?
At Bishop Fleming we are embracing Fintech as a fundraising option. Our knowledge and experience means that we are well placed to guide you through the process and provide the advice required to appraise the options and ensure you get the right finance for your business.
Whilst there are a wide range of Fintech platforms available, those where Bishop Fleming has recently provided support for clients raising finance include the following:
Capitalise is a Fintech comparison tool that provides indicative offers for debt finance from over 100 lenders based on standardised financial information. Bishop Fleming are Capitalise Certified, meaning that we are able to work actively with you throughout the process to ensure that you receive the most appropriate finance option for your business.
Caple is a debt financing option that provides unsecured debt of between £0.5m and £5m to profitable SMEs for growth, investment, acquisitions or as additional working capital. Through Caple’s Fintech platform, Bishop Fleming are able to input key operational and financial information in respect of businesses seeking finance, ensuring funds can be accessed quickly and efficiently.
Crowdfunding is an increasingly popular form of debt or equity fundraising which typically uses a Fintech platform to facilitate a funding round. Business owners upload their investment case and business plan to the crowdfunding site and individuals are able to invest any amount of the funding need, in exchange for a loan instrument or a proportion of equity in the business. Whilst Crowdfunding can result in a diluted shareholding, it can often be a source of finance for businesses otherwise unable to attract equity investment. It is particularly popular with consumer brand businesses.
Speak to Pippa Clarke, our Head of Technology, Innovation & Growth, to discuss how we can help your business meet its growth ambitions.