How Financial Institutions are Focusing on Startups
Financial services providers have always been considered indifferent to the plight of new business ventures. The structure of the lending services available at most traditional financial institutions is designed to this effect. It enables them to operate without worrying whether the business sector is going to thrive. As long as loans are repaid on time, and obligations to the institutions are met in a timely manner all seems okay. However, this tide of indifference to the needs of new business is changing quite rapidly. Financial institutions have focused on smaller businesses in several ways, the most prominent of which is managed services. Managed services are a situation where the service provider in the finance industry undertakes to provide more than credit facilities. They take over the control of the finances of the business especially as regards the use of credit facilities they have provided. This is usually done in the form of expert advice and information on the use...