All businesses today irrespective of their specific age and size try their best to make and boost their presence in popular social media sites such as LinkedIn, Facebook, and Instagram, etc. We know that a well-organized and nicely-managed social media platform of business would be working effectively for the growth and prosperity of the business.
Social media could be utilized by a business for boosting brand awareness and brand building, efficiently marketing all its unique products and services, effectively engaging with its customers, and seamlessly connecting with new partners and vendors, and certainly more. Experts believe that along with so many benefits of maintaining a robust social media presence for any business, a solid social media profile or image could go a long way in helping a business in obtaining a business loan.
Even though it is quite astonishing but the fact remains that social media helps in fortifying your business loan application. Let us see exactly how it precisely works.
As per https://blog.lendified.com, the core element in the efficiency and effectiveness of online lenders comes from the reality that they make the maximum use of valuable alternative data sources while taking decisions relating to creditworthiness. It is of critical importance to find out precisely how crucial this data is supposed to be and the precise factors that are being considered so that your startup or small business could rest assured that it would be receiving funding whenever there is any necessity for funding from any alternative lender.
It’s a well-known fact that it’s quite challenging to acquire a business loan approval for your startup or small business for the very first time. You must realize that lenders have to ensure that you are not a risky borrower and so they resort to examining your social media profile and presence to examine meticulously your creditworthiness.
Moreover, the modern lenders online examine and analyze the overall social media presence instead of examining only the credit history and credit score of your small business for ensuring loan eligibility online. Let us explore the numerous benefits of social media in boosting your chances of getting the approval of your business loan application.
For Verifying that the Entrepreneur or the Business Exists in Reality
Since online lenders are primarily accumulating information about the various applications via online application forms, they need to ensure that the business that has put in a loan application exists in reality and the entrepreneur filling out the application form on the business’s behalf is authentic and genuine about its identity.
Social media could prove to be immensely useful for the verification of a business’s size, location, and the industry it belongs to. It is of critical importance to note if any inconsistencies are present between information on the social media site and information provided on the business loan application. In the event of certain inconsistencies in information, the loan may not be declined outright but a thorough review would take place again thus, delaying the entire loan approval process.
Since time is of great value particularly, for all those loan applicants that are utilizing alternative lenders, this could prove to be of great significance and must be avoided. Reputed lenders such as Liberty Lending are strict about the authenticity and genuineness of the information provided.
There exist several patterns, as well as, data points that could be examined to mitigate this sort of risk. You must understand that even an insignificant thing as simply copy-pasting and not typing a name could be an indication of a fraudulent bot trying to fill out the loan application instead of the entrepreneur concerned.
Making an Estimation of an Individual’s Character Depending on their Friends on Social Media
You could examine the friends of an individual on a social media site and make inferences regarding the character of a person. If a loan applicant has social media friends who have a good track record of repaying their business loans that could be a good sign of the applicant’s creditworthiness too.
Getting an Insight on the Way Applicants Are Used to Spending Their Time
Creditors would be looking for certain red flags like an excessive amount of time spent at casinos and bars that may indicate that the individual concerned could prove to be a high-risk loan applicant.
Predicting the Chances of the Business Succeeding in Future
Depending purely on social media information relating to factors like how responsive the business is to all its customers and audience on social media, and even robust customer reviews on sites such as TrustPilot, TripAdvisor, and Yelp, you could predict to a certain extent if a business is sincere and dedicated in its efforts and would succeed in future or not.
Confirming the Facts & Information Provided
Generally, lenders examine the social media profiles to verify the physical address including the business’s name and contact details. Lenders would be meticulously scrutinizing that the information across all social media platforms is consistent. In the event of any major discrepancies, the loan application could be rejected on the ground of suspicion.
Social Media Presence & Duration
The duration for which the business has set up its various social media accounts seems to be another verification factor. If the business has been on most of the popular social media platforms for quite a long time and has created a solid fan or follower base, this could be a good and surely a positive sign to the lender. The longer duration on social media platforms may prompt loan approval for a business.
The Nature of Your Posts
The kind of social media posts a business shares and the sort of reaction it gets from its audience or followers goes a long way in the rejection and sanctioning of a business loan in modern times. If you are involved in purely and consistently marketing endeavours, it could be treated as a negative signal. An ideal way of posting on your social media platforms should be coming up with posts at regular intervals and the posts must be a mix of marketing, trending topics, festive wishes, informative posts, etc.
Building an impressive image of your business or brand on the popular social media platforms could be time-consuming. But if you succeed in doing things right, it could help you in getting numerous advantages including business loan approvals.