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Pique a Peer Lender’s Interest

Interested in peer-to-peer lending? If so, here’s some advice on how to pique the interest of a peer lender once you decide to use a particular peer lending network. (For information on peer-to-peer lenders, view my previous blog post, Top Five Peer-to-Peer Lenders.) According to an article on Inc.com, ” Once you’re approved on a peer-to-peer site, it’s all about “putting yourself in the shoes of the lender,” Gass says. “The first thing I would look for if I were lending is anything that would lower my risk, and that comes down to things like the borrower’s experience—there has to be something that says you’re not just a dreamer.” “

He’s saying what I repeatedly state: You must understand the investor or lender mindset and what they’re looking for in order to package your company and your “opportunity” accordingly. Remember, investors and lenders are not social entities. They do this to make money for themselves and/or their companies.

The article, “How to Attract a Peer Lender” goes on to say, “You have to create an ad that tells people why they want to invest in you”. The more specific you are, the better. I just had someone seeking assistance with finding investors for a start-up send me a 1-pager, then increase it to 2-pages. The entity was pre-revenue. There were so many vague comments and suggestions like, “This product is intended to be a standout in the xxx arena. It has no true competitors.” That is an example of what NOT to put. EVERYONE has competitors, even if it’s an in-house product or service. And who cares what it’s intended to be. What IS it?

The article continues, provide “an overview of what you’re planning on using the money for and how your business is running.” The former is called ‘Sources and Uses of Funds’. The latter is simply a snapshot of your business and market.

More article excerpts: “The description of the business is going to be more of an influencer.”

 

‘ “Think of it as business plan: Write out what you’re trying to do, and show that you’ve done your research,” she says. “The way you present yourself comes across over the Internet. Be straightforward, none of this ‘my mom thinks I’m the best kind of stuff’—just be credible and honest.” ‘

I couldn’t have said it better myself!

(Read the article, How to Attract a Peer Lender, in its entirety.)

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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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