NEWS: Business Finance Success Down to AI and Technology

Emerging technology is helping specialist lenders revolutionise business finance. Challenger banks and small lenders are at the forefront of providing business finance for SMEs, providing a quicker, more efficient service.

Written by Luka Ball

New technology, such as automation and AI, are modernising the application process for acquiring business loans by simplifying the affordability assessment process and fraud detection.

AI is specifically being used to personalise services and products, manage risk and fraud, enable transparency and compliance, automate operations, and reduce costs. Across the pond, JP Morgan Chase is at the forefront of championing the integration of emerging technology into banking, with CEO Jamie Dimon comparing AI to the printing press, the steam engine and electricity.

The decision for financial institutions to adopt AI is expected to snowball as technology develops, users begin to adopt it, and regulatory frameworks shift to accommodate these changes.

Automating paperwork and online verification is one way that technology is cutting the process in half, meaning that businesses and those looking for funding can get an answer on whether they are eligible for a finance product almost immediately.

This not only increases customer satisfaction by decreasing the time borrowers are left waiting, but it also means they can access funds more quickly.

The benefits of implementing AI in finance - for task automation, fraud detection, and delivering personalised recommendations - are monumental. AI can quickly analyse financial data, assess creditworthiness, and generate accurate risk profiles, significantly expediting the approval process.

In the future, there’s also scope for tools that can personalise loan offers by matching a business with suitable financial products, increasing the likelihood of approval.

Moreover, AI can reduce human bias and errors, ensuring fairer and more objective evaluations. Additionally, AI chatbots and virtual assistants can provide 24/7 support, guiding businesses through the application process, answering queries, and offering real-time updates on the status of their applications.

This, combined with a thorough understanding of the lending landscape and the ability to provide tailored solutions for businesses that are in need of funding, potentially where other lend have failed, gives them a competitive edge.

Related: How Much Does a Business Loan Cost? & How do Business Loans Works?

What Do the Experts Say?

Jonathan Moffatt

Head of Business Finance

In consumer finance, it is common to use aggregators to compare financial products.

We have developed a system that checks a company's eligibility up-front and matches the business to suitable lenders in less than 60 seconds.

This enables our clients to complete applications, upload required documentation and for our brokers to compare products, provide quotes and quickly submit to lenders.

It’s about providing a service that’s as efficient as possible and reducing the time required to obtain a decision from a lender, improving the customer experience.

The last 20 years have shown that technology is at the forefront of consumer lending, and as the landscape shifts, commercial lending is next.

It’s likely that brokers and lenders that do not invest in technology will fall behind.

How much Can You Borrow?

To get an indicative idea of how much you could borrow, use our business loan calculator below.

To get a clear idea of the costs associated with business finance, read our blog on business loan interest rates

Get Access to Modern Business Finance Solutions

At Clifton Private Finance, we work with a variety of clients, from sole-traders and micro-businesses through to multi-national corporations - we accept applications from individuals, limited companies, SPVs, and offshore structures. We have relationships with a range of lenders and can get access to market-leading rates and tailored products. 

Our team of commercial finance specialists work daily to secure suitable finance solutions for businesses. Contact us today to discuss your specific needs and start the process of obtaining the funding you require.

To see what we can do for you, call us on 0203 900 4322 or book a free consultation below.