Who are the new borrowers in B2B lending? - Showtime Digital

Who are the new borrowers in B2B lending?

18 April 2019 Read 869 times

Ondeck

A non-bank lending overview of buyers

The non-bank lending sector kicked into gear early to mid-2015 when the Fintech’s arrived. That’s only 4 short years and in this time the sector has grown from last resort to mainstream lending.

In this article we’ll update you on a new buyer who’s becoming more relevant to lenders. Over the coming years this buyer will play a larger part in your marketing and sales processes. This buyer is more tech savvy than some of the traditional buyer types.

They will expect more transparency from their lenders and seek relevance to their situation. It may mean the industry becomes more people than finance centric.

If you want to see more information on the existing buyer types we already know (Image1) click here to read more.


Image1

 Note: When we refer to non-bank lending in the B2B space we are referring to two general sectors;

  1. Fintech (Prospa, OnDeck, GetCapital)
  2. Invoice Finance (Scottish Pacific, Cashflow Finance, Waddle)

There are a growing number of variances on these funding methodologies and as people look for relevance, they’ll become more mainstream over the next 12 -24 months, such as is the pace of the industry.


Meet the new Fintech and Invoice finance buyer

Image2

Meet Charlie. She has become the new buyer looking for business funding. Since the beginning of Q3 2018 we’ve seen the younger 25-34 age group emerge as an audience the industry must cater for (Image3).

Image3

When we break age groups down even further (Image4) into male and female we can identify the emerging group of females aged 25-34.

Image4

As with other sectors were we’ve interacted with this buyer they exhibit common behavioural patterns. This buyer is educated and digitally demanding and very different to males in the same age bracket.

The due diligence they often do prior to talking to suppliers could mean they are a better loan risk. They could be worthy of your attention.

If you want to create buyer personas for your client base, download this “How to create buyer personas” eBook here.

 

5 key considerations with your digital strategy

Charlie will expect more from you in some respects. In Image5 we see the 5 key considerations for finding customers in the non-bank lending category. If we’re targeting the Charlie’s of the world the industry will need to lift its game.

To uncover the process to create your Go-To-Market Strategy, download this Go-To-Market Strategy eBook.

Image5

 

Category competition – When a category has incumbents there’s always an increased hurdle to overcome. This being the case, there’s lots of room to muscle between the Prospa’s and Scot Pac’s of the industry.


Image6

If you’re promoting yourself online, consider some brand work to define who you are and what you mean to the buyer. The younger buyers like Charlie will appreciate your efforts in meeting them where they’re at.

Opportunity – Look different but be authentic and explore options which define you.

Buyer indecision – With so many options available to them arriving at a conclusion may be the single greatest challenge the buyer encounters.

Opportunity - Compare funding options on your website, rather than simply telling people what you do.

Buyers emotional stability – It’s true the anxiety of buyers plays a part in where a conversation starts. Ask what the cost of more market share means in the short term. Also avoid the early hours of SME anxiety of 2am – 7am.

Opportunity – Choose quality over quantity conversations.

Channel diversity – Gone are the days of simply using one channel (eg. Google Ads), to go to market. Depending on how a company originates their loans (broker, online or mixed) there is a standard channel strategy the industry uses but refreshing tactics are still available which sets you apart from the crowd.

Opportunity - Build a consistent voice across channels within the category.

Asset Quality – From a client facing perspective you’d be forgiven for thinking most industry websites were made by the same company. If you placed everyone’s logo into a hat and handed them out again, 95% of buyers wouldn’t know the difference.

If everyone says they offer ‘Fast flexible funding in 24 hours’ it doesn’t take much to be different.

Opportunity – Don’t look at your competitors to define you. If you started over what would you want to say and look like?

If you can articulate your point of difference, if you can be the source of comparison and see the long game there’s so much opportunity in this category.

If you would like to see the a comparison of 22 companies in the category in greater detail, including Search terms, Social engagement, Consumer traits and upcoming trends then download the full 25-page report on non-bank lending here.

Steve Palmer

Steve Palmer is the Joint Founder and CEO of Showtime Digital. Steve has been in B2B sales since 1997 but influencing people and behavioural science has been a long-term passion.

The magic he brings to his clients is in knowing how to engage their audience. His goal is to help businesses understand the deeper reasons of why consumers convert online with them.