Authored by Phil Cohen
The omnipresence of social media now extends beyond simple social networking, communication, and marketing. Social media has and always will be crucial to a business’s brand awareness and customer loyalty. More recently, social media has proved to be a determinate in the selection process for factoring firms and loan-givers because of its ability to provide true feedback about a business. Social media reviews and inquiries on sites such as Facebook and Twitter show lenders a lot about a business’s customer service as well as how they position themselves within their industry.
How to Use Social Media to Secure Small Business Financing
One of the biggest challenges small business owners face is qualifying for financing in the early stages. Having an overwhelming social media presence can solve this problem. Coming up with a social media strategy for small businesses is simple. Once you have a defined target audience, you just have to create content that interests your clients and keeps them coming back for more. A healthy social media presence can include a large number of followers, a frequently updated page, posting relevant content and thoroughly responding to customer inquiries. The majority of online and traditional lenders view a healthy social media presence as a sign of a flourishing small business. The more popular that you are online, the easier it will be for them to trust you and consider you legitimate.
This is particularly true of online lenders. Victoria Treyger, the Chief Marketing Officer at Kabbage, an Atlanta-based online lender, told the Chicago Tribune that her company now requests access to the social media accounts and profiles of all prospective clients. Kabbage mostly looks at potential prospects Facebook and Twitter activity. Kabbage takes the data related to the social media sites (followers/subscribers, number of posts) and puts it into an algorithm that helps them decide whether or not lending money is wise in the situation. In addition to social media data, the algorithm also looks at a company’s incoming revenue, accounting data, how quickly they pay their vendors and the businesses eBay and Amazon activity. Treyger says, “Really show outstanding customer service to customers, because that is a fundamental sign of a good and thriving business that’s going to do well over time.”
Aside from seeing the level of client’s customer service, lenders can use social media to check up on their reputations by seeing the public’s feedback and reviews. Naturally, people take to social media if they are overwhelmingly satisfied or upset with the quality of a small business’s service and professionalism. Hence, it is only logical that lenders check how the general population thinks of a small business. Even if there are some negative reviews associated with your business, responding in a timely and professional manner will show lenders you are trustworthy. It is essential to exhibit a professional, courteous and service-oriented persona online.
Lastly, a savvy social media campaign can help your small business get top-notch loans in that a developed presence on Facebook and Twitter makes your organization seem like an expert in its field. In other words, it allows your company to “talk the talk,” so to speak. If done properly, lenders are going to assume that your business can also walk the walk, and they will therefore trust that you are worthy of favorable loans. A solid Facebook and Twitter profile is a must for small businesses seeking loans.
Does Your Small Business Need a Loan?
Contact Factor Finders today to learn more about small business loans at 866-330-2242.