6 Ways to Get Noticed Using P2P Lending

Last post: Jun 3, 2014

Thinking of crowdfunding? Here are some tips on things to bear in mind

P2P lending is an outstanding source of alternative finance for businesses of all sizes. However, in order to make the most of it, you have to create a profile which will inspire potential lenders to invest. Here are a few marketing tips on how you can create the perfect pitch.

Tell your story

Typically, when uploading a profile, you'll have an opportunity to provide a write up, plus images and perhaps a video. Remember the rules of web content when providing this – that people make a decision about what they have read often within seconds of appearing on the page.

You'll need to make that first paragraph – and even that first sentence – really count. Sit back and try to sum up what you do and what your business proposition is within a few words. There is a temptation to try to oversell, but resist this. We've become immune to marketing speak as consumers, so much so that when we come across it we often react against it.

Pictures tell a thousand words

We do respond better to visual stimulus. Most sites will provide the option to upload images and videos onto the site, although the video option tends to come at a price. It'll be for you to decide whether you think a video might provide that extra push.

Be informative

For any investor – whether they have pots of cash or if they just want to lend a few extra pounds – this is an important financial decision. So if you've hooked them with your opening there is still work to do.

Any investor wants to know certain things:
  1. Who is running the company: what's their track record in business and are they any good?
  2. How income is generated right now.
  3. Where it will come from in the future.

The ideal investment represents a company run by a competent and enterprising group of people – perhaps successful business people who have no decided to use their skills and experience to branch out on their own. It will have a steady income stream, already be profitable and have several years of healthy accounts showing ongoing growth.

They will also want to know how the company intends to grow. Is it expanding into new areas which will push income upwards? Are there exciting new opportunities and growth potential? They want to be investing in a company which is on an upward curve.

To demonstrate this you not only need to outline your hopes, but also provide clear evidence about how this is going to be achieved.

Finally, tell them why you want the loan – what you will do with the money and how this will improve the strength of your business. More than anything they want to know the money will be put to good use. Not only will it reassure them that the loan can have a positive impact on your business and as result the profits, it will also give them a sense that they're really contributing to your success.

Be clear on your finances

Much of the attention on P2P lending at present is on how it can guarantee a safe financial proposition for its lenders. Therefore, in order to be clear about the risks, the majority will give your profile listing a credit worthiness rating.

Naturally, if a lender looks at your rating and sees A+ they are going to make all sorts of positive assumptions about the health of your company and the competence with which it is run. Equally, a D rating might cause them to form the opposite impression. While the purpose of this rating is to act as a guide to how high an interest rate an investor should demand, they might also use it to think about how well your company is governed.

Therefore, when submitting your application to the crowd funding platform, be as clear and transparent as possible in your accounting. Illustrate where business is coming in and where you expect to find more in the future.

And finally… inspire

Money is not the only motivation behind people joining crowd funding sites. They also love to be inspired by a great story. If there is something special about your company, why not share it. Perhaps you have a great story about how the enterprise was founded, or maybe you're using part of your profits to help the local community. Either way potential investors may well be attracted by the chance to be involved in something a little bit special.