Small Businesses are Failing! Why They Need Better Insights on Finances.

Tedd Huff recently welcomed Walt Levengood, the VP of Strategy and Revenue at Nav, to the Fintech Confidential 1:1 Series. Nav is a fintech company that provides tools for businesses to manage their financial health.
In a world where the success of small businesses and entrepreneurs isn't just a possibility but a priority. Walt unveils the secrets to not just surviving but thriving in the competitive business landscape. This article is more than just a read; it's a guide for entrepreneurs eager to master the art of building robust business credit and leveraging the full potential of financial technology. Get ready to transform your approach to business finance and propel your venture towards unprecedented growth and success.

The Entrepreneur's Guide to Building Stellar Credit: A FinTech Revolution with Nav

We're talking about savvy entrepreneurs and how they build stellar small business credit. It's a topic that's as exciting as it is crucial, especially in the ever-evolving world of FinTech. And who better to guide us through this journey than Walt Levengood from Nav, a company that's making serious waves in the FinTech space.

Walt Levengood's FinTech Adventure for Small Business Success

First off, let's set the scene. Imagine you're a small business owner. You've got dreams bigger than your budget, and you're hustling hard to make them a reality. But here's the catch – in the world of business, cash is king, and credit is the queen. That's where Nav comes in, like a knight in shining armor, offering tools and insights to help businesses like yours take control of their financial health.

Now, Walt's falling into Fintech journey is a story in itself. It's like a tech version of an adventure novel. He started at Freedom Pay, moved to Bankcorp Bank, and then, as fate would have it, found his calling in helping small businesses at Nav. It's a journey that speaks volumes about the evolution of FinTech and the growing importance of financial health in the business world.

Stopping the Death Rate of Small Businesses

Jumping right into something super important – the survival and success of small businesses. This is important because 99.9% of businesses across the US are small businesses. Nav's mission is pretty straightforward but massively significant: they're on a mission to cut down the small business mortality rate.

This matters because Fundera reports that about 20% of small businesses typically don't survive past their first year. Fast forward to five years, and that number jumps to around 50%, calling it quits. That's a lot of dreams and hard work disappearing. Small businesses aren't just storefronts or services; they're the lifeblood of our economy, powered by real people with real dreams. Well, Nav is stepping in like a financial ally, geared up to help these businesses not just survive, but soar.

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Try beehiiv absolutely free with no credit card required.Navigating Business Finance with The Power of Data-Driven Solutions

So, how does Nav plan to tackle this challenge? According to Levengood, they're not just relying on magic tricks; they're actively wielding something far more impactful – data-driven solutions. They pinpoint the exact data on what the small business needs and line up financing options that make sense. Considering CBInsights' report that 38% of small businesses close their doors due to lack of capital, having tools to navigate these waters becomes critical for survival.

Giving businesses the right kind of advantage means providing data-informed and tailored solutions specific to their needs. Entrepreneurs should be wary of companies that randomly toss out financial products. Instead, they need a partner that deeply understands their business, anticipates their needs, and helps them make strategic moves. In a world where small businesses often face tough odds, having a knowledgeable ally is crucial. This approach isn't just good for business; it's about fostering a community where small businesses can thrive and grow.

Acquisitions of TillFul and Nuula Reshape Small Business Finance for Nav

TillFul and Nuula. These moves represent more than mere business expansions; they are strategic steps toward offering small businesses more comprehensive solutions.

Consider TillFul as your business's newfound ally in the credit realm. This platform does more than just monitor your credit score; it actively boosts it with customized advice. For entrepreneurs eager to enhance their credit standing, TillFul emerges as an invaluable secret weapon.

Shifting focus to Nuula, we encounter a completely different level of innovation. It's as if Nav has supercharged its financial insights. Picture having a crystal ball that reveals your business's financial health in real-time, covering everything from cash flow to customer sentiment. Nuula integrates all these aspects into Nav's offerings, transforming it into a formidable tool for financial decision-making. With TillFul and Nuula by its side, Nav transcends the role of a typical financial platform. It becomes a pivotal change-maker for small business owners who are navigating the complex financial landscape. Nav is all about empowering you to make informed, strategic decisions with the right tools, positioning itself as the ultimate guide in this journey.

Taking an Innovative Approach to Building Small Business Credit Files

Small businesses look to, innovation as a crucial item for their success. Walt Levengood of Nav captures this essence with his approach: 'It's about aligning financing qualifications, predicting needs, and facilitating transactions.' This perspective is at the heart of Nav's innovative strategy in building credit for small businesses. His insight sheds light on the importance of moving beyond traditional credit models to meet the unique needs of small businesses. Nav's method, as Levengood describes, is not just about offering financial products but creating a tailored pathway for credit building.

Now, here's where it gets even more interesting. Their approach to building credit files for small businesses is nothing short of revolutionary. They're not just looking at small businesses from a traditional lens. Nav's game-changing strategy involves harmonizing diverse data points through integrations with platforms like MX, Plaid, Fiserv, and Finicity. This isn't just data collection; it's about crafting a comprehensive financial profile that lenders and issuers understand.

Not another NeoBank

Typical NeoBanks are just about sleek apps or digital convenience. That only goes so far and, we have seen many of them like, Marcus, by Goldman Sachs, N26 and, others have shut down. Nav seems to be taking a different approach and focusing on the entrepreneur and small business owner.

Today, where banking is rated on digital convenience and sleek apps, there's a growing realization that these features alone aren't enough. We've seen this play out with several neobanks like Marcus by Goldman Sachs and N26, which, despite their digital-first approach, have faced challenges to the point of shutting down. This trend underscores a crucial gap in the market – the need for financial solutions that go beyond just digital innovation and truly understand the entrepreneur and small business owner.

In this context, Nav is taking a different approach and isn't about just offering a digital version of traditional banking services. It seems to be more in tune with the needs of small businesses and entrepreneurs. There are unique challenges facing small businesses. Organizations ready to provide tailored financial solutions that align with their specific goals and needs, predict those needs, and facilitate the right kind of transactions.

This approach is redefining the role of financial platforms in the small business sector. It's a commitment to the growth and sustainability of small businesses, recognizing them as the real drivers of the economy. This kind of approach, which seems to be embodied by certain players in the FinTech field, is more than just digital banking – it's about empowering businesses with the right tools and insights for their financial journey.

Actionable Strategies for Small Business Success

With all this talk about the challenges entrepreneurs and small businesses face, I hope this insightful exploration into building stellar small business credit, with the help of FinTech innovations like Nav, has given you some insight into how experts are tackling these problems.

1. Embrace Data-Driven Decision-Making: In business, intuition is valuable, but data is king. Start leveraging data-driven tools and platforms like Nav to gain deeper insights into your financial health. Analyze your credit scores, cash flow patterns, and spending habits. Use these insights to make informed decisions about credit opportunities, investments, and growth strategies.

2. Build and Monitor Your Business Credit: Your business credit isn't just a number; it reflects your business's financial reputation. Start by establishing your business credit if you haven't already. This can be as simple as opening a business credit card or securing a small line of credit and ensuring timely payments. Regularly monitor your credit reports from major bureaus to understand your credit standing and to correct any inaccuracies.

3. Seek Tailored Financial Solutions: Every business is unique, and so are its financial needs. Avoid one-size-fits-all financial products. Instead, seek financial solutions tailored to your specific business requirements. This could mean choosing a lender that understands your industry or a credit card with rewards relevant to your business expenses.

Remember, if you're a small business owner navigating the choppy waters of finance, staying informed, proactive, and adaptable is critical. By implementing strategies like these, you're securing your business's presence and charting a