In recent months, the number of loan projects has steadily increased. This is an advantage for investors as they have a wide range of credit projects. The range for all credit ratings or topics in which you can invest is quite high.
Crowd with the increasing number
For borrowers, however, the challenge is to “stand out” from the crowd with the increasing number. Therefore, we would like to briefly give you a few suggestions that have emerged as an experience of the last 12 months.
1) Inform yourself about the market
On Good Lender you can determine your interest rate yourself. Of course, this means informing yourself about which interest rate is customary in the respective credit rating. Borrowers can use the marketplace statistics to find out about the current average interest rate. Another source of information is already funded loan projects.
Important: for most investors, the interest rate alone is not crucial. When a project is well described, it is usually funded quickly and often receives favorable interest rates. Of course, the deviation from the average rate of interest may not be too great – for 1%, only a few will be enthusiastic – after all, investors want to get a fair return on their investment.
2) Set priorities: time or interest?
Is it more important to you to receive an instant loan within the shortest possible time or do you want to pay the lowest possible interest ? This decision needs to be reconsidered before you discontinue your loan project. Because starting from the beginning with a slightly higher interest rate, you can assume that your loan project is financed quickly. Loan projects above the usual interest rate are partially funded within hours in the online credit marketplace.
If, on the other hand, it is important for you to obtain the best possible conditions, you can start with a low interest rate. Over the 14 days that your loan project is in the marketplace, you should then gradually increase the interest rate if necessary. You can see at what rate the project attracts investors and optimize your borrowing costs.
3) Describe your project – in detail and clearly
Good Lender investors are of course interested in the return. Nevertheless, it is an important motivation for many of our lenders to make their money available to other people for meaningful projects. The motto: Doing good and earning money is not mutually exclusive. Therefore, the description of your loan project plays an important role.
A rule should always apply: Describe your loan project as truthfully as possible. Debt restructuring is financed by Good Lender as well as the expansion of a solar system, as long as the project is convincingly presented. Many investors also contact the borrower with specific questions about the loan project. In that sense, your project should make a consistent impression.
It all starts with the headline: Choose a short, concise headline that gives you what you need your credit for. In the project description itself you should describe in detail the intended use. Also pay attention to correct spelling as it shows investors how much trouble a borrower puts into creating it. Also in your personal profile you should provide some data about yourself. It goes without saying that their anonymity should be maintained, but some information about your financial situation creates trust and helps investors to better assess you. Even a completed residual credit insurance creates additional security for lenders.
A good example of this is the project relocation to the Hanseatic city. The borrower has given a sympathetic description for its intended use. He also took the trouble to upload a photo. Also his profile description is good and gives a first impression.
4) Watch your loan request and be flexible.
Once your loan project is set up in the marketplace, it does not mean “sit back and wait.” If bids from investors come in within the first two days, then congratulations. Your project seems well described and attractive. Depending on the size of your loan, your financing should then be completed quickly. Remember, however, that after two days no bids have been received, you can adjust the interest a little bit upwards. Look at the marketplace daily and see what you can do. It is advantageous to put oneself in the position of an investor – from which interest and with which credit project description would you invest money?
In summary, two factors are key to successful lending projects: reasonable terms and a good description . If you follow these two tips, nothing stands in the way of successfully financing your project.
Good luck with your loan request and best regards,