Who Needs Money?
Every pop-up store, every mom and pop shop, every startup, every small business, in fact virtually every business of every size and type needs money. Sales, service, and subscriptions seldom do it all, so practically every business needs business loans to operate and grow. Want to bring the economy to a halt? Freeze credit, (remember 2008?) To paraphrase a quote from an earlier era, the business of America is business lending. That’s where business loan marketing comes in.
Virtually all business loans originate from either a traditional lender or one of the expanding variety of alternative funders. How then do funders and borrowers find each other? Business loan marketing brings them together, forging connections informed by data.
Databases have been created that contain the pertinent information lenders need about potential business borrowers. This data empowers them to responsibly screen for the right loan prospects that fit their business model.
Further, databases are available that illuminate the propensity for newly formed businesses to seek funding, as well as highlighting the moments in the life of a business when such needs are likely to arise.
Loan Marketing – Established Businesses With Good Credit
These will have a history of perfected UCC filings. Over 31 million are in existence, with many thousands being created each year. The details in UCC filings reveal if a business represents a good credit risk. A history of perfected filings suggests a healthy business. Moreover, from a competitive standpoint, key details identifying both the borrower and lender plus the nature of collateral can be known.
Loan Marketing – Merchant Cash Borrowers
These are often small businesses – often retailers – that repeatedly need cash advances to pay overhead and finance inventory. Merchant Cash Advance lenders focus on helping them meet their needs.
Loan Marketing – Credit Challenged Companies
Existing businesses that have experienced difficulties need to borrow money to right the ship. Such credit challenged companies are often candidates for alternative funding solutions.
Loan Marketing – New Business Registrations
These are “newborn” entities that need funding prior to actually opening for business. Then they need to borrow money to start running and stay running. Databases are built from public records and various government sources including State, County and City filings including new incorporation, new d/b/a, trade and new business licenses and registrations. They may not yet have UCC filing histories but often still qualify for business credit.
Loan Marketing – Business Trigger Events
All businesses undergo change. Ownership, management and DBA change. Contact information can change. Financing needs often accompany these changes. Funders of every stripe can select the sorts of business trigger events that represent opportunities for them.
Business Loan Marketing Is The Lifeblood Of Lender Growth
Each of these cases presents both traditional and alternative funders with ample opportunities to grow their loan portfolios by marketing to the loan prospects that align with their business goals.
Quality UCC filing and public record based mailing lists empower lenders to build a case for targeting the prospects they seek. The data must be fresh and accurate. The data must have an impeccable pedigree and still be well-priced. Lenders can then compete harder and compete smarter while they build their loan portfolios.