Forget About SaaS: Software-as-a-Lender Could Be The Next Big Thing
Summary
By analyzing revenue growth, customer profiles, and other financial indicators, these SaaL companies could quickly determine how much money they’re able to lend and how long the recipients will likely need to pay it back, thereby bypassing the lengthy process borrowers are forced to undertake when they apply for traditional small business loans. What’s more, because they’re already providing payment services, the process of getting paid back would be as simple as automatically taking a percentage of their customers’ daily sales until principal + interest is received. Even though it started as only a mobile and easy to use payments processing platform, Square has added traditional software services like payroll, inventory management and tracking, and real-time sales analytics. First, traditional financial institutions are struggling to provide customers with the products and services they need – the loan approval process takes too long, the requirements are onerous, and the options are limited. By leveraging their deep industry expertise and providing specialized financial products, lenders like Ally gave their customers individualized services that addressed their unique needs.
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