7 out of 10 consumers favor companies having social media presence, but a strong social media profile, not only a tool for the sale is to be increased. It can also help to get a business loan you. Alternative lenders like OnDeck and microcredit as Opportunity Fund use social media data to inform their lending decisions.
At the end of the day, a fantastic Facebook or Twitter page is not outweigh a poor credit score or poor cash flow. However, social media data is often used to verify the information you. For a loan application In rare cases, it can even the balance in a business' favor tip.
We surveyed experts to find out exactly how lenders use social media data and how you can use to get an entrepreneur better social media on your chances of funding.
Need some money for your business? Click here to get our free guide:
How to get a Small Business Loan
How Lenders using social media to meet loan decisions
to check [1945008?] Social Media Business information
use Lenders social media data to support their lending decisions, but not in the way you think. Most lenders are mining your Facebook feed not see what customers are saying about your business, nor are they to evaluate social media data with your creditworthiness. Rather, social media data is to check information about your company uses.
If you go to a bank for a business loan to get your physical presence and the documents your company confirm with you identity. In contrast, when you apply for a loan through an online or alternative lender, the lender has no idea if you are who you say you are.
Andrea Gellert, chief marketing officer for OnDeck , a leader in the online small financing space business, the company said social media data used as 1 data from more than 2,000 check point to whether a company is really what it seems to be on the loan application. For example, it can be used to confirm a business' address and measure the size and type of company.
When a restaurant is claiming for 5 years for a loan OnDeck in been business and have $ 100,000 in annual revenue, a Facebook page with only a handful of locations could increase a red flag. This is not to say that the business does not qualify for a OnDeck loans, says Gellert, but it can be used for additional investigation call and slow the processing of the credit application.
in other words, that the image of your company will be painted on social media should correspond to what is in your loan application. Levi King, Co founder and CEO of credit monitoring platform Creditera , is another good example. "If you say business is doing great in your application, but then you or your customers post about how bad the business as the economy ruined your business, etc., this will hurt your chances to get a loan. "
social media to help" Use Credit Invisibles "
most alternative lenders social media in the same manner as OnDeck as a possibility , information to confirm in your loan application. However, some non-profit lenders like Opportunity Fund are put more emphasis on social media data, if the applicant concerned does not have any credit history to assess for risk.
Opportunity Fund receives many business loan applicants who no credit score. These candidates are among the more than 45 million, or about 1 in 10 Americans no credit scores. Called the " credit invisibles ," they are recent immigrants to the United States and the Americans with low incomes.
Caitlin McShane, marketing director for Opportunity Fund, the nonprofit applications says to try social media data to build a more complete picture of such candidates. This allows the Fund to go behind the numbers, such as business sales and personal income, it asks for the loan application. In rare cases, positive reviews about a company on Yelp and other social media even helped push through deals that were on the fence.
The head of the fund of underwriting, Joe powaga says that "social media information no hard-coded data point in our scoring today, but if offers are borderline, all the data points, social media and online reviews, including, come into play when your posture or a decision on such a deal to develop. "Unlike OnDeck that uses a sophisticated algorithm to evaluate social media data, employs the Opportunity Fund employees who by a company "Social Media Sites look.
What you mean the Now?
In most cases are social media data does not mean the difference between getting a loan and not a loan.
If you have a credit history, which is the main thing to be the lender to look at when deciding whether to lend money. If you due to special circumstances do not have a credit history, the lenders use social media data, can fill in the gaps with other data.
Jeff Stewart is the CEO of Lenddo , lenders in emerging markets such as Brazil and China will help assess risk through social media. in such markets, says Stewart , most people have no credit score, which produces social media data to use credit to assess a greater need. However, in the US credit history a useful way risk for most borrowers to assess. Even borrowers who have financial figures have no credit score to evaluate credit card statements or other information about risk.
How is the use of social media under future ?
could enhance the role of social media in lending in the future.
alternative lenders like OnDeck and Opportunity have reduced Fund already their dependence on traditional sources of identity and information (which can be prone to error) and instead of the thousands of small footprints that a company on the web makes to inform their lending. This makes the insurance faster and more efficient and has alternative lender allows a portion of borrowings away to steal from banks.
Banks may soon this technological model embracing better compete, and if so, can begin to put on social media to process loan requests. For example, Fair Isaac Corporation , the creator of the popular FICO credit score model was said that they can take over in the future social media in credit score calculations.
Levi King of Creditera is not surprising that more lenders turn to social media. "Social media channels," he says, "are always strong indicators of behavior, intentions, and the surrounding activity that does not appear in the credit data. It will probably take a long time until you can get a business loan alone off of social media data, but those days are eventually likely to come. "
3 Tips to use for operators, social media
While social media is most likely not make your loan application or break, here are 3 simple steps that you can to ensure a faster, smoother approval process:
1. Create a social media profile for your business.
If you. Do not have a Facebook, Twitter or have other social media page for your business, take some time to create a Create a social media profile helps online lenders verify your business easily identifiable ". It is also a good marketing tool, helping you engage your customers.
In most cases your personal social media profile is irrelevant for lending. It is your business' social media profile that counts. However, we recommend turning the public access to your personal social media profile. If the lender to get their hands on it and to see negative information could hurt your chances of getting a loan. for example, King says, "imagine a SMB owners losing a messy divorce posting or the shirt, and then application for a loan . Not so bright. "
Even if you own a business that revolves around your personality, as a psychology or counseling practice, it is a good idea to a profile for business use set separated from your personal profile.
2. Select use a platform that makes sense for your business, and actively it.
There are hundreds of social media networks. the most important ones for entrepreneurs Yelp Google My Business (showing your address and contact information in Google search results), Google Plus, Facebook, Twitter, Pinterest, Instagram and LinkedIn.
It's wise to your efforts in one or two outputs for objective to make the most sense for your type of business. For example, if you own a fashion boutique, Pinterest and Instagram might most appeal to your customers. Similarly, if you're a restaurant, you might want to focus on comments Yelp reviews and Facebook.
Whichever outputs select, use them promptly actively to customer inquiries and comments on social media and react. As your business grows, you should spend more time in developing your social media presence. This is your customer and show the lender to improve that you are a serious business with a solid customer base.
3. Hold. Your business information up to date on social media
Once you selected which networks social media you want to use, keep your business address, phone number, e-mail address and hours of operation power.
This is particularly useful for Yelp, if the clients are on a business trip and. For Google My Business because this address shows in Google search results
Lenders, especially online lenders, you do not meet in person, not comfortable lending to you will feel when you match your online address to what you in your loan application questions. You can easy to hold business information flow.
Need some money for your business to accelerate loan approval? Click here to get our free guide .:
How to get a small business loan
Bottom Line
customers, employees and suppliers are increasingly looking to determine social media if they want to work with a company. Lenders are now part of that group. Ultimately, however, says Jeff Stewart of Lenddo not get too caught up your social media profile to improve only the lender to impress. Rather, they develop to engage your social media presence all parties that you do business. The loan piece is falling into place
.
0 Komentar