6 reasons why lenders need to embrace next-gen working capital now

“It isn’t a case of can you or can’t you – it’s the case that you absolutely have to do it.”

Matthew Perry, Business Design Lead with Lloyds Banking Group, says it’s essential for banks to get digital transformation done.

Business lenders who aren’t already acting are getting left behind – they should act now. Here are 6 reasons why.

1. Business lending has been left behind. Consumers expect to be able to manage their finances on their phone, whenever they want. The technology to bring working capital finance up to date is here.

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2. The pandemic, and now inflation, have disrupted business finances significantly. Annual reports, once key to a risk assessment, are of diminishing value for assessing the health of a business – and how likely you are to get your money back. Lenders can now use forward-looking risk indicators. We are entering a golden age of invoice and receivables finance.

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3. ‘Sweating the assets’ may now be more expensive than replacing the technology. And why take the risk of building when you can licence best-in-class technology that’s available now? Composable lending lets you provide adaptable, flexible, scalable lending products, built from the best-in-class supplier for each component.

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4. No explanation needed here! Business borrowers have more choice through better use of data, technology and business models. Read more about responding to Big Tech and how to improve business models.

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5. New products and channels will dominate over the coming years. You need a platform that can launch and update products rapidly, and take advantage of the latest technology as it emerges.

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6. SMEs are crucial to any economy: for jobs, growth and innovation. For an economy to grow and for a society to benefit, SMEs need lending products to support their ambitions and to protect them during tougher times.

A framework for delivering next-generation working capital finance

Trade Ledger is a core service provider to a number of global multinational banks and specialised alternative lenders who have successfully transformed their working capital finance offering. We’ve learned many lessons along the way and have developed a framework for other lenders looking to do the same.

We’ve distilled it into a report, Next-generation working capital – the $ multi-trillion opportunity. It’ll give you more detail – but every business lender’s needs are different, so why not contact us to see how we can work together to deliver the best working capital finance for your customers.