Kevin Day, Editorial Board Member of TRF News and CEO of HPD Lendscape, makes a comprehensive analysis of why lenders should embrace techology to be able to help SMEs survive.

The COVID-19 virus has advanced across the world at an alarming rate, causing levels of disruption to the global economy not seen in a decade. Globalised supply chains for goods and services are under severe pressure, with few businesses escaping significant strain on their income. The head of the OECD has since stated that we could be facing the “gravest threat” to the global economy since the 2008 financial crash.

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A joint article by Jonathan Croft, Chief Information Officer, Société Générale Factoring and Kevin Day, CEO, HPD LendScape.

“Say you are an international, multi-jurisdictional financial institution or bank. Your goal is to replicate your successful financing model around the world, for the benefit of your customers, your staff and your shareholders. It sounds simple enough.”

However, the world is not that simple. Different cultures, languages, legal frameworks, currencies, time zones, infrastructures, software, processes, working days of the week… The list goes on. There are many hurdles to cross-border expansion, but this article focuses on the question of your chosen technology…

Growth business are now spoilt for choice with regard to their debt funding options. Since banks pulled back from lending to SMEs in the aftermath of 2007’s Great Financial Crash (GFC), a host of other providers have emerged to cater for their debt finance needs. These range from dedicated SME debt funds and tech-driven banks, to P2P lenders, venture debt funds, and fast-growing fintechs. These alternative providers are making a welcome contribution to growth company funding, but all have issues to resolve and drawbacks to address.

This is in contrast to the asset-based finance (ABF) sector, which has, to some…

Today, all forms of businesses rely upon technology to deliver their products and services in a global market. To what extent is technology merely a tool or an intrinsic component of the offering is a sliding scale, from completely unimportant at one end, to the technology is the product at the other. We see this today in the world of short-term credit with the arrival of FinTechs, where the provision of finance and its technology are entwined to make a single solution for customers. …

Technology is already shaking up the way working capital finance providers think about their services. In this paper we take a look at the three key developments about to shape the industry’s future.

Firstly, we look at why a focus on cost savings is no longer enough for companies. Secondly, we conclude that more of a focus on service and value will bring new ideas into the industry. Finally, we discuss why there will be a shift towards more holistic working capital finance solutions. …

HPD Software’s CEO Kevin Day explains why SME funding requirements increasingly are being met by fintech lenders owing to the scarcity of traditional bank loans and business overdrafts.

Asset-based finance is entering a new era of significant growth and market acceptance. The business world has not always embraced this method of funding and it has sometimes been seen as a route only to be considered if other options were unavailable. However, ABF is now expanding globally with businesses in both developed and developing countries showing a greater appreciation of its value. …