Traditional lenders remain a longstanding supporter and financer of small businesses. However, with increased regulation and the myriad needs posed by small business owners, traditional lenders sometimes struggle to back their small business clients.
They can overcome the challenge, says Mark Cerminaro, Chief Revenue Officer at RapidAdvance, through augmentation. By partnering with nontraditional cash flow lending programs like RapidAdvance, traditional lenders can not only enhance existing customer relationships but also reduce attrition.
Innovator and Thought Leader for the FinTech Times
Cerminaro brings multiple years of experience to the world of FinTech. Prior to his role at RapidAdvance, he served as a financial advisor and associate branch manager at Morgan Stanley where he cared for over $200 million in personal and commercial assets.
Today, Cerminaro continues the work but in a much broader and more in-depth scope. He works with RapidAdvance’s executive management team to hone the company vision and customer-centric focus. He also holds responsibility for revenue strategies and growth, meaning he keeps a constant pulse on finance technologies and the market.
Cerminaro’s role also extends outward: he manages business development, third-party relationships and partnership sales at RapidAdvance. The work’s a blessing; it gives him insight into customers’ mindsets, allowing him to provide thoughtful direction and innovative ideas to customers, partners and employees.
Overview of the Current FinTech Landscape
Some of that direction occurs in public presentations, such as the one given at the recent SBDC Conference. Cerminaro gave a broad overview of the FinTech industry, helping traditional lenders and small business owners understand how the new technologies benefit both parties.
“FinTech aims to streamline financial services,” he explained. Even then, the industry often seems murky. “The FinTech market includes a number of aspects,” Cerminaror continued, “including digital wallets like Apple Pay, equity crowd funding and cash flow lenders.”
Cerminaro focused on the third component as RapidAdvance stands as a leading cash flow lender. The fact might be read as bias, but his advice remains sound. “Look for lenders who communicate with the overriding financial institution to decide upon an appropriate loan amount,” he recommended. “Also watch out for ones that make false statements or charge such egregious fees that they might as well be robbing the small business blind.”
Benefits of Partnering with Online Lending Platform RapidAdvance
Cerminaro finished the presentation with a discussion of how cash flow lenders like RapidAdvance benefit banks and other financial institutions. “Many small businesses have immediate — and pressing — financial concerns,” he said. “They need over-advance money or funds to restock inventory.
“When they can’t get that money from you [financial institutions], they become frustrated, perhaps damaging the relationship permanently, or decide to go elsewhere. Neither option benefits anyone.”
The financial institution or factor loses good business and possibly face in the small business community. A small business unaware of legitimate funding opportunities might find itself in cash-flow straits or in debt to a less than honorable financer.
The solution to both problems rests in cash flow lenders. Through them, financial institutions build and retain relationships while small business owners get the capital financing needed. Cerminaro illustrated the case with RapidAdvance’s approach.
“Our company focuses on a couple of elements,” Cerminaro stated.
- Takes a consultative approach
- Maps business needs to financial packages
- Offers multiple financing options
- Defers to factors, when desired
- Always complements, never competes with, factors
As a result, financers can say “yes” to small business customers more often, leading to improved relationships and reduced risk. Cerminaro also added, “With a company like ours, factors can position themselves as a go-to funding resource for small businesses, which not only builds a more positive reputation but also increases net worth. Partnering with us simply is a win-win, for the factor and for the small business owners they serve.”
If your institution would like to solidify more relationships, create new ones, and say “yes” to more financial deals, get in touch. We’d be glad to talk with you about our partner program options.
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