Every business, regardless of its size and age, tries to make a strong presence on social media these days. The key point here is that it helps in building a strong application for a business loan without security as well, in addition to brand building. Social media presence also helps in the marketing of the products and services, engaging customers, and connecting with new customers and vendors.
Along with all these benefits, a lesser known benefit, as said above, is it helps in getting a business loan application approved. Yes, it may be surprising for you, but a strong social media presence strengthens your loan application. Let’s take a look at how it works.
Confirms the Information Provided
The first thing that it helps in is verifying the physical address along with the business name and contact details. Lenders check the information if it is consistent across all social media platforms. Upon founding discrepancies, the loan lenders become suspicious, and the situation may lead to the rejection of the loan.
The other thing that the lender checks are the duration of the social media accounts of the business. If the business has a presence for a long time and it has a good list of followers, it is a positive sign for the lender. So, longer the age of the business social media site, higher the chances of the approval of the application for a business loan without security.
The lenders of the posts check the quantity and quality of the posts and followers. In other wants, the connections of the business on various social media platforms. A minimum of 2000 followers on social media is said to be an ideal strength of followers for a small business.
The next thing that they check is the posts. They are the reflection of the products and services. At the same time, the reactions of the followers on the same posts is also a crucial aspect. Also, if the business owners keep on doing product marketing, it leaves a negative remark. The ideal social media posts should be a combination of informative posts, marketing, trending topics, festive wishes, etc.
Reviews of the Business
Checking the ratings or reviews of the products and services by the customers is yet another thing that is considered by most lenders. If the social media handle has a low rating or bad comments from the customers, it impacts negatively on the loan application. Nevertheless, bad comments are harmful to the growth of the business as well.
In most cases, the loan lender generally checks the social media presence of the applicant. But the applicant still has to meet the business loan eligibility to get the loan application approved. The approval or rejection of the loan application is still dependent on the eligibility criteria. It is just that a good social media presence adds more weight to the application.
If you are looking for a business loan without security, you can avail the service from ZipLoan. It is an RBI registered NBFC that offers its loan product at more than 15 places, including Delhi NCR, Jaipur, Lucknow, Mumbai, and Dehradun. Also, ZipLoan offers business loans at minimal documentation and no prepayment charges.