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03 26 2014

03 26 2014

Social Media Could Lead to More Business Capital

Most business owners know that great reviews from customers online often lead to more business. They also know that a good online presence – conversing with customers through Facebook, Twitter, Instagram and other platforms – builds rapport. But some may not know that these things can help organizations secure a loan from a small business lender.

Nontraditional lenders like National Funding are increasingly vetting applicants via their online presence to see if a business is likely to pay back a loan. If customers write online reviews complaining about bad service and bad communication or if there’s virtually no trace of a business online, lenders may be led to believe that a loan won’t be repaid. Similarly, if a company gets rave reviews about its service or products, it likely will experience success, making it easier to pay back loans.

“I think if you were to look at companies that spend time investing in communicating with customers and engaging them, then that means you’re detailed in your financials or other items on your balance sheet,” John Frank Robinson, a small business owner, said in an interview with the Orange County Register.

The Register report said monitoring a company’s online and social media presence is especially helpful for nontraditional lenders that cater to small and new businesses that need quick financing but may not have an extensive history to be judged on.

Socially secure

One online credit provider found that small businesses that have a strong social media relationship with customers have a 20 percent lower delinquency rate than those that aren’t active on such outlets, the Register reported.

Customer connection

Besides possibly helping a small business secure a loan, social media remains a huge factor in a company building positive relationships with new and existing customers. There are a few ways businesses can use social media outlets to stay popular with its followers.

For one, by providing helpful content to customers, small businesses can act as a voice of authority. Customers will begin looking to the company for tips, valuable news and links that may be of interest to them.

Another way businesses can boost their social media popularity is to promote other businesses. While it may seem counterproductive to name drop potential competitors, if they have a good idea or are known for a great product, giving them credit will boost credibility.

Nichole Kelly, CEO of a social media company and president of a digital marketing agency, told The Huffington Post that small businesses should follow the 80/20 rule on social media. Under this guideline, a business should only post about its own services and products 20 percent of the time, leaving the other 80 percent to align with customers’ interests, such as news about their respective industry.

Finally, a small business should follow a pattern of what they post and when. For instance, a restaurant may want to post its daily special in the mid-morning when many of its customers are getting settled in at work and checking social media for their night’s plans.

In short, small business owners should keep in mind that social media isn’t as easy as it may seem, because once you’ve turned off a customer, it’s difficult to win them back, so setting aside time to make sure all efforts are top notch is a must.

“Where small business owners often make mistakes is that they’re constantly looking for an easy button,” Jason Falls, a founder of a social media company and vice president of digital strategy for CafePress.com, told the Post. “Social media is not a channel that you can walk away from for a while and not lose a lot of ground.”

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Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

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To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

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The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

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I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

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