Every business of present-day regardless of its size and age tries to make its presence strong in social media sites like Facebook, LinkedIn, and Instagram etc. A well-managed social platform of any business works magically for the growth of the business. Social media of business can be used for brand building, marketing your product and services, engaging your customers, connecting with new vendors and partners and many more. Along with all those benefits, a lesser known advantage is that a well maintained social media profile can be a help to get a business loan too. Yes, it is surprising but true that a social media strengthens your business loan application. Let’s understand how it works.
This is ever known fact that getting approval on a business loan is never easy especially when you own a startup business and you are applying business loan for the first time. The lenders do a lot to check the creditworthiness. Unlike the conventional business loan lenders who check credit score and history of the business, the modern online lenders do check the social media presence too just to ensure the eligibility of the loan.
The Checklist of Lenders on the Social Media Platforms Includes
- Confirming the Information Provided
The first thing which is checked by the lender on social media platform is the verification of physical address along with the name of the business, contact details etc. Lenders check that the information provided is consistent across all social media platforms. If any discrepancies found, lenders become suspicious on that particular loan application which can be further resulted in the rejection of the loan.
- The Duration of Social Media Presence
The duration that the business has had its social media accounts is another point of checking for the lender. If the social media of the business has been functioning for a quite long time and successfully made some impact on its followers, the lender takes it as a positive sign. Longer the age of your business social sites, higher the chances of the approval of your business loan.
- Your Posts
The next thing checked by lenders is your posts. The stuff you post in your social media platforms and the reaction of your followers on the same matters a lot in sanctioning or rejecting the loan. If you keep on doing marketing of your products, it can be taken as a negative remark. An ideal set of posts on business social media should be a combination of marketing, informative posts, festive wishes, trending topics etc.
- The Followers
Along with the posts, lenders do check the quantity and the quality of followers or connections your business owns on its social media platforms. The minimum of 2000 followers on social media is taken as an ideal strength of followers of a business.
- Ratings and Reviews of the Business
Checking the ratings and reviews of a business is something which the customers do at the first place before availing any service or product. Lenders are also no different. If your social media gets a low rating or bad comments from its customers, it impacts negatively on the business loan application. Such bad comments are even harmful to the growth of your business too.
- The Frequency of the Response
Social media are such platforms where people can easily make a direct connection to the opposite party. In this process of exchanging ideas, it is important that your business comes up with a regular response to its customers. The reaction of a customer can be a good one or a bad one. But replying to your customer shows your sincerity towards the business. Such an act of yours towards the social media of your business is taken as a positive point of your business.
In most of the scenarios, an online lender generally used to check the social presence of an applicant. But presently, the conventional lenders also started checking social sites for a better eligibility check for a business loan. The approval or rejection of a business loan application depends much on the social media account of the business. Considering the fact, here are some tips for business owners to manage their social media accounts more efficiently.
Here Is How You Can Create an Impressive Image on Social Sites
- Be responsive to your customer and followers in social media. A good social relationship with your customer signifies that your business is valued by its target market and possess future potentiality.
- Be responsive to customer reviews. Being a responsible business owner, you must know how to handle reviews on your social media. Whether the review is positive or negative, you are to respond to it. Such an act of yours is a good indicator of your temperament and character.
- On all your social platforms, you should try to get more and more connections. Not only the quantity of the connections, but you also to focus on the quality of the same. If your connections are the leaders of your industry who has a great number of followers, that is an added advantage for your business loan approval.
- Along with everything else mentioned above, you are to be active on your social sites. A regular post may it be a blog, an image, marketing your product or service or anything else. It is needed to be active on social sites for a better trust building of lenders as well as customers.
The Bottom Line
Creating an impressive image on social sites can be a time-consuming task. But if done right, it would fetch numerous advantages to your business including approval of your business loan. One can even hire a social sites manager for a professional handling of your social websites. Investing some time and money in building a good social image can become a weapon to win the business loan for your business.