Role of Social Media in Business Loan Application

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Role of Social Media

With the advent of social media, every business tries to make its presence on digital platforms such as Facebook, Instagram, and LinkedIn. Social media can be beneficial for any business for brand building, marketing products, and services, connecting with new vendors, engaging with customers and many more. Along with with these aforementioned benefits, a well maintained social media profile can help you get a business loan too.

There is no denying the fact that getting approval on a business loan is never easy, especially when you own a startup business and you are applying business loans for the first time. The lenders have their own checklist to determine your creditworthiness. Apart from your income and credit score, the modern online lenders also check the social media presence just to ensure the eligibility of the loan.

The checklist of the lenders on the social media platforms includes:

• Confirming the information Provided:

The first thing that the lenders check on the social media platforms includes 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 discrepancy found, the lender might reject your business loan application.

• Duration of Social Media Presence:

If the social media of the business has been functioning for quite a long time and has 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 that the lenders check is your posts. The stuff you post on your social media accounts and the reaction of your followers on the same matters a lot in sanctioning or rejecting the loan. If you have an ideal set of posts on business social media, there are more chances to get a business loan approval.

• The Followers:

Apart from your posts, lenders check the quality and quantity of your followers. 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 is something that the customers do in the first place before availing any service. Lenders also do the same thing before accepting your loan application. If your social media gets a low rating or bad comments from its customers, it impacts negatively on your loan application. Such bad comments are even harmful to the growth of your business too.

• The Frequency of the Response:

Social media connects people to the opposite party. Therefore, it is important that your business comes up with a regular response to its customers. 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.

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 along with the approval of your loan application. Investing some time and money in building a good social image can become a weapon to win the business loan for your business.