Difficult market conditions: Financial expert gives tips on financing for small traders

Difficult market conditions: Financial expert gives tips on financing for small traders

According to a report from www.it-zoom.de, many traders are currently being influenced by difficult market conditions. Mainly, supply chain issues and delivery bottlenecks cause concerns about product availability. Added to this are rising energy and raw material costs as well as additional costs due to inflation.

According to a Yougov survey, 36 percent of merchants say it is becoming increasingly difficult to get a loan from a traditional bank. This is due to several developments. On the one hand, since the state-subsidized KfW Corona aid expired, banks have had to bear the full risk of loan default, which has led to many banks tightening their lending criteria for financing. In addition, overall creditworthiness has declined due to macroeconomic and political risks. As a result, banks are becoming more and more restrictive when granting loans. This means that fintech loan providers that specialize in small and medium-sized businesses are coming into focus.

Small businesses and self-employed people have difficulty accessing sufficient capital quickly. It is therefore advisable to use alternatives to your house bank. Online loan providers and other fintechs often offer short-term and easy liquidity.

A financing solution was recently introduced between the expert's company and the marketplace provider Ebay. This solution enables online merchants on the marketplace to gain direct access to short-term working capital loans. Loan approval is typically automatic and real-time, allowing merchants to have funds within 24 hours. Instead of paying interest, a one-time fixed fee is charged. The repayments are flexible and are linked to the sales generated on the platform. This financing solution offers clear advantages for sellers as they have easier access to much-needed capital and can grow their business on the marketplace.

The impact of these developments on the market, consumers and the industry shows that traditional banks are becoming more restrictive in lending. This opens up new opportunities for fintech lending providers specializing in small and medium-sized businesses. Small businesses and the self-employed can benefit from alternative online credit providers and thus access urgently needed financing more quickly.