Small businesses today cannot survive without social media. Many of the world’s most successful new companies do most of their business on the Internet through social media. It is for this reason that many lenders consider a company’s presence on social media when making the decision of whether or not to loan a small business money.
Are you applying for a small business loan? While social media use and business loans may seem unrelated, the truth is that one informs the other. Keep reading to learn how you can use your social media presence to your advantage when applying for a small business loan.
Small businesses that really build up their social media presence stand a better chance of receiving the small business loans they apply for. Many risk-assessment companies and financial firms use social media to research companies to see if they qualify for a business loan. This social media research allows lenders to identify a business’ weaknesses, strengths, and various trends to see how they handle capital and whether or not it would be wise to lend them money.
In addition to conducting research through social media, these lenders are using smart analytics to rate companies based on their brand reputation, in addition to their credit scores. Many lenders even base their final decision on how well-known companies appear to be on social media. For example, a business with no social media presence isn’t as likely to receive a loan as a company that is consistently active across their social media platforms.
On social media, sharing positive content is more important than you might realize. Businesses that post anything that can be construed as offensive, rude, or not politically correct will find that their social media campaigns have taken a turn for the worse. If lending firms find these social faux-pas, it may hinder your chances of being accepted.
Alternatively, a company that posts consistently positive and quality content will find that they are bringing in more followers, gaining brand recognition, and will appear more responsible to lenders. Thus, investing in your social media campaigns will put you one step closer to being approved for the small business loans you are applying for.
No business is an island. On social media, it’s important to be social. This means that connecting with consumers and other companies is a must. Businesses that constantly collaborate with other companies will appear more innovative and dynamic, which are qualities lenders always look for.
As you search for other companies to collaborate with, choose wisely. While two businesses getting together for promotional posts and social media takeovers is a good idea in theory, if a company that you are associated with shares negative or controversial posts, this will affect the reputation of your business. Only work with other companies that will boost your brand’s image, not ruin it.
While you may be looking into small business loans to keep your company afloat financially, your social media should paint a picture of a successful company. Lenders that are looking on social media are searching for companies that have the ability to repay their loans. Companies that display potential collateral in their posts like office equipment, company cars, and the like will appear to have the ability to successfully pay the loans back.
Small business loans are an essential part of running a business in today’s world. Keep these five social media tips in mind as you continue to apply for small business loans.