5 Ways Social Media Affects Getting A Business Loan

The majority of businesses or companies today have taken advantage of social media platforms as a part of their marketing and prospecting strategies. As millions of users actively engage in social media platforms each day, business owners see this as an opportunity to connect with their customers and potential leads. But social media has much use to offer─like helping you secure funding for your business.

How Social Media Influences Getting A Business Loan

Social media sites such as LinkedIn, Instagram, Twitter, and Facebook are some of the platforms usually utilized by business owners. Because of these social profiles, it is much easier to gain access to more information about a particular business or account.

In this blog, we will discuss 5 ways on how your social media influences getting a business loan and tips to enhance your chances to secure funding.

5 Ways Social Media Influences Getting A Business Loan

1. Social media profiles help the borrower learn about your business before making a decision.

Social media platforms such as LinkedIn is a great source of information about a business. Though it is likely that the bank or lender would conduct a business consultation and interview before proceeding with the application, some would take a look at your business accounts to verify the information given to them as part of their underwriting process, based on an article from Weebly.

With that in mind, it’s important to schedule regular information check-ups on all of your accounts. Keep things up-to-date and don’t forget to inform your audience when important changes have been made.

2. Social media is used to determine the viability of a loan.

According to one article, “lenders primarily look at businesses’ LinkedIn pages when determining loan eligibility.” Social media data can play a larger role beyond just verifying business information. For applicants who don’t have credit scores or those just starting out to support their application, “a strong social media presence can fill in the gaps and may help them get a business loan”.

Some business owners sought help from social media experts to help grow their online presence. For others, they chose to take the time to engage with the virtual community. Depending on your current situation and resources, take time to decide what is best for your business.

3. Banks and online lenders use social media in their algorithms.

For further evaluation references, some lenders have given borrowers the option to give access to their business social media accounts such as Facebook or Twitter, and e-commerce vendors such as eBay or Amazon to gather additional credit history.

Remember that your personal credit history and online transactions can be considered additional references to make your application for credit-worthy.

4. Social media can influence the terms of online lenders.

Any social media activity or engagement could contribute to your loan application’s approval as well as terms. Many lenders have adjusted application terms based on social media presence and network. One article outlined that your accounts reflect your business stability and potential.

If obtaining the loan is important to you, it’s probably worth investing time improving factors that can impact its approval.

5. Great content engagement with your customer matters.

Some lenders are looking into the engagement rate and feedback of customers through public comments and reviews. In this way, they are able to determine if the business wanting to secure a loan is able to manage their services effectively.

Aside from resolving your customer’s problems, it’s also important to regulate and manage the information that is found in your social media account. Take time to answer comments, even complaints, in a modest and respectful way at all times. Aspire to provide solutions and only move to justify if truly necessary.

Take The Time Optimize Your Social Media!

There is plenty of help you can acquire to grow your online presence and audience. Whether getting help from the experts or applying the tips yourself, having a strong social media presence will be beneficial in many ways. It allows you to stay close with your customer experiences and build a strong rapport with them!

We encourage you to take the time to review the points mentioned above and determine how you can improve your business’ social media accounts.

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