“Managing cash flow is one of the biggest struggles that small businesses face. Entrepreneurs often rely on a patchwork of spreadsheets, scanning bank balances and mental math to track how much money is coming in and going out,” she wrote.
The piece cited a study by Javelin Strategy and Research, which found that less than 20% of small businesses manage their cash flow with technology from their bank. “It’s relatively rare for banks to offer this kind of product, especially to small businesses, even though many commercial customers need it and fintech rivals of banks have provided it in pursuit of greater market share,” Cross reported.
Although bank solutions and fintech-powered solutions are uncommon in the small and mid-sized business context, the need for them is present and real. Karl Augenstein, an executive director at the technology and management consultancy Capco, is quoted in the piece as saying, “Small businesses never have enough money.
“With a tech startup, it’s all about the last funding round and when do I run out of cash? With ongoing businesses it’s more about, what does my cash situation look like, when am I getting money in, when do I have to pay?”
American Banker’s full piece on Centime and FNBO’s partnership, which also delves into the functionality of Centime’s Cash Flow Control solution, is available to their subscribers. Free registration grants guest access to several articles per month. Register or login to read the article here: