Meaning ● Decentralized Finance, or DeFi, represents a paradigm shift in how Small and Medium-sized Businesses (SMBs) access and manage financial services. For SMB growth, it provides alternative funding avenues beyond traditional bank loans, leveraging blockchain technology to connect directly with investors. ● Automation enters the picture through smart contracts that streamline financial processes such as invoice factoring and supply chain financing, reducing administrative overhead. DeFi implementation for SMBs means lower transaction fees, faster payment processing, and increased transparency compared to traditional banking systems. ● Instead of relying on central intermediaries, SMBs can utilize DeFi protocols to enhance operational efficiency and improve cash flow management, facilitating expansion and competitive advantage within their respective markets, through innovative yield generation strategies related to treasury management. Accessing fractionalized assets or DAO based loans can now provide SMB with alternatives previously available for Enterprises only.
