Maximising Your Investment Portfolio from the SME Market
For many individuals, adding to an existing portfolio of investments is a long-term strategy that ideally isn’t too risky or time consuming. What is traditionally considered to be ‘safe’ investments are assets such as property ownership, funds, bank savings or fixed annuities, however, smaller investments are becoming more of a potential and attraction to investors looking to earn an additional quick return and maximise investment portfolio.
When it comes to savings, we all hope for a better return, in a short space of time. We tend to hold our money in traditional savings accounts that offer notoriously low interest rates where it just doesn’t move, and yet we are still too afraid to do anything else with it that may involve even a slight implication of risk.
In today’s financial climate, investors study market trends and speculate into what to invest in next. An investment outlook to a working professional could cover a range of options such as top up existing holdings, transfer unwrapped holdings into an ISA or sell some of their underperforming investments and buy something else. There is also a question of performance and fees, investors may choose to pay a higher fee in a fund due to their large returns, and to see the value active specialist funds can bring to a portfolio.
You might also look at the stability of a company that you want to invest in, the experience of the managers and the size of the funds and its ability to be nimble. In short, the objective of an investor is to achieve long term growth. But what other opportunities are we overlooking in today’s technology driven society? How else can we use ecosystems to maximise our profits? Maybe you have built up a respectable sum of money in a high-interest savings account, but you know that saving cash isn’t enough.
While no investment is guaranteed, let’s take a look into one particular market where growth appears to be ever-evolving, the SMEs.
How valuable are returns in the SME market?
Small-to-Medium sized Enterprises (SMEs), a market that generates around $850 billion of annual revenue for banks—through deposits, lending, overdrafts and payments – a pool expected to grow by approximately 7 percent annually over the next seven years. SME focused banks are not in a position to serve the needs of SMEs and profit from other customers leaving SMEs feeling underserved and isolated.
According to McKinsey & Co, the fintech approach could be the key ecosystem needed to serve the vast market of SMEs. The $850 billion-dollar industry is a pool of revenue expected to grow by approximately 7 percent annually over the next seven years.
It is common for entrepreneurs to experience unmet needs, hence why they are moving away from incumbents and more towards ecosystems. Fintech firm, Populous World, is a single integrated platform that offers invoice finance and business intelligence solutions for organisations. The platform breaks down the difficulties SMEs face when seeking funding solutions. By offering a bespoke facility whereby SMEs can release cash against outstanding receivables, business owners can reduce the time spent on administrative duties and more on core business activities.
Investing in Peer-to-Peer lending
Populous World, a fintech company that has significantly shaken the invoice finance industry, not only serves undervalued SMEs with their technology driven platform and assists in growth, but in unison, generates a quick and profitable income for individual, private investors.
Populous World acts as the funding mechanism that SMEs need to bankroll their operations on one simple and easy-to-use model. Technology-based firms are not only providing SMEs with the funding they need but simultaneously delivering lucrative returns for investors. Fintechs, commonly referred to now as “big tech” firms are a unique and compatible combination of traditional banking finance and innovative technology solutions aimed to offer many products that banks provide, but at a lower cost and increase revenue.
Speaking about innovative investment opportunities, Steve Nico Williams, CEO of fintech firm, Populous World, said, “Finding the right platform to avoid a disruptive impact of charges is a key factor when deciding in which investment to buy into. The beauty of our model is that we have built a platform to facilitate P2P lending, that is not only easy to use but is also a swift process for invoice buyers (investors). Our platform allows investors to loan money to SMEs like a bank does, and you get to receive the interest they pay in”.