You’ve started your application to become a LendingCrowd borrower and are about to fill in the Business Pitch section. It’s important to get this right as the pitch is what investors will read when they are deciding whether to lend to your business. This post should help you to write an effective pitch and secure the funds you are looking for.
Here are 5 tips on how to write a successful business pitch:
- Plan ahead
Think about what you want to say in your pitch before you write it – this makes it easier to produce an effective pitch which contains all the important information. Along with the financial information you provide, the pitch is what investors will base their investment decisions on so you should give a fairly detailed description of your business.
A well-written pitch will make the funding of your loan quicker and reduce the number of questions that investors will ask. Having a look at the loans currently on the Loan Market for ideas of what to include is useful as you can see the kind of information other businesses have provided and what works well by how investors have responded. If you are unsure, have a look at our blog post on the information you should include in your pitch.
- Keep it short
Include important information in the pitch but don’t make each answer too long; investors will have the opportunity to ask you questions when your pitch is live on the Loan Market so you can give more detailed information then. Keeping it fairly brief makes the pitch readable and more likely to attract investors who may not want to spend long reading a description of each business.
- Make it clear
Remember – investors may not have heard of your business so don’t assume that they will know anything about what the business does or the sector generally. Explain briefly but clearly and don’t use industry abbreviations or language which is not common knowledge.
- Check your pitch
A pitch on the Loan Market that is not clear and concise will attract less investment. Before you submit your application, ask someone else to read it and check for spelling mistakes, any sentences that are not clear, or any jargon that investors may not understand.
The team at LendingCrowd will also be happy to read your pitch and give you some advice on improving it if needed – just contact us.
- Keep an eye on investor questions
Once the loan is live, investors may ask questions about your business or plans to use the loan. Not replying to investor questions will provide a bad impression of your business and suggest you are disorganized or not being completely honest. It is therefore a good idea to reply to all questions promptly to increase your chances of getting a fully-funded loan.