If you’re looking for a way to grow your business, you might want to consider business loan advertising. Business loan advertising is a form of marketing that helps you reach potential borrowers who are looking for funding options for their ventures. While most of the global economies are slowing down as we stand today, the fundamental nature of a business loan dictates that it is 1. an emergency and 2. very hard to get.
In every single step of the business process you require some amount of money.
Start a business: you need a loan.
Expand the business: you need a loan.
Write off a huge debt: you need a loan.
But advertising the loan to millions of business owners is another ball game. Indians especially look at the term ‘Loan’ with great suspicion. When most prospects look at you suspiciously, you must get more creative in selling yourself.
To succeed in selling business loans, you need to understand your target market, their pain points, and their goals. We can recommend you techniques, tips and best practices. But you will only go so far with it. In this article, we’ll show you how to create a loan marketing strategy that helps you achieve your business goals and delight your customers.
Let’s look at some numbers.
Selling business loans requires a lot of research, planning, and preparation. You need to know your numbers, your competitors, and your value proposition. Let’s look at some data.
According to the RBI Working Group Report on Digital Lending, the amount disbursed based on a business loan has increased from 27% to 38%. That means more people are taking business loans. So when you, as a marketer, are about to take on an Ad campaign for a Lending business, you’re looking at an expanding market.
According to a report by KPMG & Google, about 51 million SMEs in India contribute 37% of the GDP and employ 120 million people. Even though there are significant stigmas around taking loans, slowly, as India grows more and more, those cultural hurdles will go away at a certain point.
But who is taking these loans?
Mostly the rich. Even after the 1991 liberalisation of the liquid markets, only 25 million of India’s 6.4 crore MSMEs have ever been granted credit from institutional lenders. In plain English, it means most of India 2 & 3 takes way fewer loans than India 1. Because for even the ‘Big Lenders‘, it is too risky to lend to them. One of the biggest challenges of selling business loans is finding qualified leads who are interested in your products and services.
The same reports also highlight that the demographics have skewed for the 25 to 45 age group because, in the last decade, more than 130 million new people have joined the recurring workforce, thanks to India’s highly young demographics.
So, how do you sell them business loans?
The key to selling business loans is to build trust and rapport with your prospects. You need to show them that you care about their success and that you have the best solution for their needs. Not just loans, the best way to sell anything is to successfully tell a compelling story. Nike is not successful because they make better shoes (although they make good ones); they are successful because they can tell a good story. A story that religiously celebrates athletes and sportsmanship.
Here are some principles we follow when we tell our stories @WhitePanda.
Scarcity: Make something seem rare and valuable.
Urgency: Make people act fast.
Social proof: Show that others like your services.
Linkage: Make people look up to you.
Authority: Make people trust you.
Utility: Show them the benefits of your services.
Here’s an example of a script we wrote for a video Ad for a traditional Finance Brand.
“Growing a business is hard. I know because I’ve been there. I tried everything I possibly could, but in the end, nothing worked. I was just about to quit. And then, I finally discovered ‘xyz’ Loans. They specialise in business loans for small businesses like mine. There were always ups and downs, but they have a great track record overall. I applied for a loan and got approved very quickly. Their loan helped me to expand my business and accomplish the goals that I had in mind. Now I can support my family and contribute to the community that I owe. Keep going if you’re looking for a way to grow your business. Check out ‘xyz’ Loans today. They might be just what you need.”
If you look closely at it, it uses scarcity by mentioning that the loans are available for a limited time. It uses urgency by saying that the business owner facing issues needs the loan. It uses social proof by sharing a testimonial from a satisfied customer. It makes the story relatable by sharing the author’s personal experience. It also shows the product’s utility by mentioning the quick loan approval. And it ends with a clear call to action by encouraging readers to check out ‘xyz’ Loans.
But these are just technicalities. Personalised direction, production, and brand building also play vital roles. It’s the narrative underneath that is the most important.
Let’s look at some examples.
The current finance monoliths of the markets today have existed for a long, long time. They have developed industrial ways to play the market. Of course, their methods are not optimum. Anybody can improve upon them. But, it’s always better to learn from them and build a sense of ‘what to do‘.
- Use testimonials and case studies from prosperous borrowers who have used your loans to grow their businesses.
Bandhan Bank Business Loan ( Hindi – 75 SEC)
This is a woman’s success story. She wanted to start a Clothing Store. She got a loan from Bandhan Bank. Her business became a success. And she recognised the agent from the bank who provided her with the loan in her store and offered her a free Saare.
- Paint scenarios of how your loans can solve common problems or challenges the common man faces.
Business Loans Bole Toh Sirf Lendingkart – Apply Online Without Security (Hindi)
This story explores the problems of a smartphone store owner. He faces a liquidity crunch in his working capital. He needs money to clear the stocks. The ‘hero actor‘ walks up to him and gives a solution to his problems – Lendingkart.
- Give assurances and guarantees to the prospects that reduce the risk or uncertainty while taking a loan.
Hum Kaagaz Se Zyaada, Neeyat Dekhte Hain | Piramal Finance | Business Loan
This story explores an ordinary man’s problems while getting approved for a business loan. Hum Kagaz Se Zyada, Neeyat Dekhte Hai – is a great way to put that into perspective. These types of business loan Ads work for small and medium-scale business owners.
You can also create Educational Videos
Creating educational videos on business loans and sharing them on popular social media platforms like YouTube, Facebook, or Twitter can also significantly contribute to your brand’s success. If the prospect watches your video and gets value from it, they will start thinking of you as an authoritative source in business loans. To effectively engage your target audience, developing a diverse content catalogue is crucial. This catalogue should include three types of content:
Long Form Content
Hour-long sessions, webinars, podcasts, and explainers provide an opportunity to capture the attention of prospects eager to learn more about the subject rather than just your business. Gradually introduce your marketing initiatives during these sessions, but keep your audience engaged throughout the process. One good way to generate more referrals and repeat customers when selling business loans is to provide long form content for a maximised top funnel.
An excellent example of this would be LendingKart consistently pushing long-form educational videos on YouTube. They also have some podcasts with experts and industry leaders.
Short-Form Content
To attract the teenage demographic, creating short-form content (less than 3 minutes) is essential. Collaborate with actors or influencers who can effectively communicate your message. Keep the content concise and accessible, as overly detailed or complicated information may discourage viewers.
Let’s take examples from the same company as earlier.
Extra Shorts
Reels, shorts, fun facts, daily news reads, and short-form sketches fall into this category. While they may not directly convert many people into customers, they help you grow your follower base and attract subscribers.
LendingKart also has some short content on their arsenal. Sometimes these are Jhatka Content, as in to draw attention from the prospects in order to convert. Or sometimes tutorials, and sometimes adverts as well.
FAQs
How can I effectively sell business loans in India?
To effectively sell business loans in India, it is crucial to build trust and rapport with your prospects. Show them that you care about their success and have the best solution for their needs. You can also leverage testimonials and case studies from successful borrowers, paint scenarios of how loans can solve common challenges, and provide assurances and guarantees to reduce risk.
How do I overcome the cultural hurdles and stigmas associated with taking business loans in India?
In India, there are cultural stigmas and suspicions around taking loans. To overcome these hurdles, it is essential to focus on building trust and credibility with your prospects.
- Use social proof by showcasing testimonials and success stories from satisfied borrowers.
- Highlight the benefits and utility of your loans through personalised narratives that address the common challenges faced by businesses.
- Providing assurances and guarantees can also help alleviate concerns about risk and uncertainty.
What content should I create to market business loans effectively?
Educational videos on platforms like YouTube can establish your brand as an authoritative source in business loans. Create a diverse content catalogue that includes long-form content, short-form content, extra shorts, and educational videos:
- Long-form content, such as webinars, podcasts, and hour-long sessions, helps capture the attention of prospects seeking in-depth knowledge.
- Short-form content, less than 3 minutes, is essential to attract the teenage demographic. Collaborate with actors or influencers to effectively communicate your message in concise and accessible formats.
- Extra shorts, including reels, fun facts, and short sketches, can grow your follower base and attract subscribers.
Where can I find assistance with creating effective business loan advertisements?
If you need assistance in creating impactful business loan advertisements, there are various resources available to help you. You can consider hiring marketing agencies specialising in business loan campaigns or reaching out to professionals in the field who can provide guidance and expertise.
In conclusion
Creating a business loan advertisement can be challenging, especially if you don’t have a lot of experience or resources. You need to craft a message that informs and persuades your target audience, while complying with the relevant laws and regulations. A lot of the time, marketers like to do overboard stuff. It produces short-term results but only hurts the brand in the long term.
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