Lenders Verify Borrowers’ Social Media Accounts During COVID Lending Study

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Cleveland. The COVID pandemic has forced many companies to adapt their business models in order to survive until customers shop directly and return to the farmers’ market.

When these business owners take out a loan, they often find that the lender is creative in reviewing the company to determine if it is worth the loan.

“I say [a lender]I love: “This is my Instagram, I have 1,000 followers,” said founder Michael Killick. Kirick Hot Sauce Company.. “This woman is writing it down, and I, yes.”

Kirik founded the company in April 2019, a few months before the farmers’ market closed. Therefore, it was very difficult to sell hot sauce directly.

He continued to manufacture and sell everything he could online and in local stores that remained open during the early days of the pandemic, but he did not enjoy federal support. As a result, they quickly ran into $ 30,000 in credit cards and began looking for loans to avoid high credit card interest rates.

The year before the pandemic, the Federal Reserve Bank Half of SMEs applied for a loan..

Kirik continued to make hot sauce during the pandemic because the fermentation process took so long and he owed thousands of dollars.

Bankers tell News 5 that the main reasons for granting or denying loans to small businesses have not changed much over the past few years. But Michael’s lender was doing what the banking experts told us, becoming more commonplace. It is about finding information in an unconventional way.

Banks are looking for information on business performance as technology and social media become more and more important in our personal and professional lives.

“Banks may have 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 Manager, Business Banking, Ohio and Northwest Pennsylvania Ryan Spisak.. “We always want to understand the business in its current state, how it is progressing, what are its plans, whether they are falling or growing. “

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Kevin Barry

Kirik says he was surprised that lenders are taking social media into account. Bankers say such information can be a factor in the success of a business.

Businesses can simplify their work in the following ways:

  • Make a plan to overcome difficulties
  • Show how the plan was implemented
  • Look at technology when it helps

“They created an online store and how many subscribers do they have? How good are they? – said Spisak.

Kirik says he can continue to run the business because he recently learned that he has the necessary loan and can continue to sell hot sauce directly.

Kevin Berry of WEWS was the first to report this.

Lenders Verify Borrowers’ Social Media Accounts During COVID Lending Study Link to source Lenders Verify Borrowers’ Social Media Accounts During COVID Lending Study



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