Lenders Check Borrowers’ Social Media Accounts During COVID Loan Research
Cleveland – The COVID pandemic has forced many companies to adapt their business models to survive until customers buy directly and return to the farmers market.
When these business owners take out a loan, they often find that the lender is creative when they look at the business to determine if it is worth the loan.
“I speak [a lender], I like: “This is my Instagram, I have 1000 followers,” said founder Michael Killik. Kirick Hot Sauce Company.. “This woman writes it, and I am, eh.”
Kirick founded the company in April 2019, a few months before the cancellation of the farmer’s market. Therefore, it was very difficult to sell hot sauce directly.
He continued to produce and sell whatever he could do online and in local stores that remained open when the pandemic started, but he was not backed by the federal government. As a result, they were quickly owed $ 30,000 in credit cards and started looking for loans to avoid the huge credit card interest rates.
One year before the pandemic, the US Federal Reserve Half of SMEs have applied for a loan..
Bankers tell News 5 that the underlying reasons for lending or not lending to small businesses haven’t changed much in recent years. But Michael’s lender was doing what banking experts increasingly told us. It’s about finding information in unconventional ways.
Banks are on the hunt for information on company performance as technology and social media become more important in our personal and professional lives.
“The banks probably had to dig deeper into the business or look at it from a different perspective, through the prism of the pandemic and how it affected the business,” he said. PNC Senior Vice President and Market Director for Commercial Banking Services in Ohio and Northwestern Pennsylvania Ryan spisak.. “We always want to understand companies in their current state, how they are doing, what their plans are, if they are in decline or in growth. “
Companies can simplify their work in the following ways:
- Make a plan to overcome the challenge
- Show how the plan was implemented
- Watch technology when it helps
“Do they have an online storefront and how many subscribers do they have? Are they traction, ”Spisak said.
Kirick says he can continue to do business because he recently learned he has the necessary loan and can continue to sell hot sauce directly.
WEWS’s Kevin Berry first reported this story.
Lenders Check Borrowers’ Social Media Accounts During COVID Loan Research Source link Lenders Check Borrowers’ Social Media Accounts During COVID Loan Research