SME Lending Platforms Should German SMEs Get a Business Loan Online

Getting a business loan can be challenging for small and medium-sized enterprises (SMEs). Since banks prefer to give larger loans, as their margins are higher compared to small business lending, smaller businesses have to wait in line.

In Germany, it currently takes about six to eight weeks to obtain even a small business loan, which may be too long, especially since small-sized businesses need money fast to fix liquidity bottlenecks. Thus, being able to obtain a loan promptly and timely is critical for a company's survival.

Fintechs Automate and Digitalize SME Lending

The main reason why loan applications take a while is because banks still rely on manual processes. A bank employee will work through every application, fill in and check the documentation, get additional data, and conduct credit scoring manually. This process is cumbersome, error-prone, time-consuming, and even expensive.

This is where fintech comes in. By digitizing and automating, it can significantly speed up loan processing. The loan application will happen entirely online on a digital loan platform, and all scoring and contract management will be automated. Loan platforms can automatically pull additional data such as credit scores or company registrations from third-parties through APIs. They can also provide a loan offer within just several hours, sometimes even minutes. A bank employee will only be responsible for making a final check and approving the loan.

On some digital loan platforms, SMEs will even be able to receive a loan offer within just 10 minutes. The loans are usually funded by banks, with the lending platforms functioning as loan brokers. As banks will increasingly face cost pressures in the low-interest-rate environment, banks themselves will have to digitize and automate their lending processes. For now, fintech and neobanks are viable alternatives for SMEs that can't afford to wait several weeks for a business loan. 

Work With Export Portal

In times of uncertainty, you want to collaborate with an innovative, trustworthy, and informative partner who can advise you accordingly, like Export Portal. We have many years of experience in the international trade industry and are keen on supporting our users during these trying times. If your business is struggling to remain afloat, make sure to check out our site. Our experts will work with you to identify a viable solution.