Pros and cons of auctions in crowdlending marketplaces

With the new financial technologies included within the Fintech sector such as crowd equity, crowdlending … new concepts arise that involve procedures for managing operations that constitute a very important section within said financial activities. This section is the constitution of a marketplace where investors can see the operations that are available to invest at any time. These marketplaces may have an auction system or, on the contrary, be a direct investment system.

To understand this concept well, in this post we discuss the functioning of a marketplace, the advantages of its use, a difference of types … everything below.

What is a marketplace?

Image result for marketplace finance marketplace is created as a space or place in the online medium in which bidders and claimants are allowed to maintain a relationship in order to carry out a commercial, financial transaction … It acts as an intermediary since it offers the plaintiffs all the range of products or information of the operations that constitute them, facilitating the work of the bidders and guaranteeing the security of the transaction that is made.

That is to say, in the platforms of participative financing, it is the place where the investors choose which company to lend their money and therefore, it is where the companies expose their financial needs.

Types of marketplace


It is necessary to clarify that there are two types of the marketplace:

The generalists, who publish a great diversity of products.
The specialized ones, who work in a specific sector.
An example of a generalist would be Amazon, eBay … and specialized in the marketplace of financing platforms.

In addition, another division of the marketplace is:

  • Auction Marketplace
  • Investment Marketplace or direct purchase

What is the auction marketplace?


Therefore the marketplace of crowdlending, crowd equity … is considered the place or space enabled within the site or web page to hang the different financing operations with all the necessary and important information for investors. In this way, they can choose which of them to deposit or invest their money.

In this place called “mercado” in Spanish, the offeror is the different companies that request loans through the platform that manages the financing process, and the plaintiffs are the investors that seek to make their money profitably.

The auction mode within the marketplace favors investors who lower the interest rate more, that is, investors will lend their money to the company, even after the amount is completed and investors who have lowered the interest rate the most they will be those that finally enter to participate in the loan, leaving out all the others.

On the other hand, indirect investment marketplaces, they will participate or invest in loans in chronological order until the amount is completed, that is, if a company requests € 100,000, investors will lend their money to complete that amount and at that moment the loan closes. Therefore, in this modality, the investor from the moment he requests to invest will know that he will participate without having to wait at the end. Likewise, many platforms, such as MytripleA, allow investors to lower the interest rate in favor of SMEs.

EXAMPLE OF AUCTION MARKETPLACE

Image result for the auction

Let’s see the example with illustrations of our marketplace and thus understand the auction investment process better.

Once in the file of an application we indicate what amount we want to invest and what type. What does this mean?

The investor will choose the amount he wants to invest in contributing to the financing of the company and the rate at which he will do it. Regarding the type, there is a nuanced and that is that there are two options:

Invest at the maximum rate: which corresponds to the maximum rate indicated 4.50% + Euribor in the example.
Support the SME: what it means to reduce the interest rate to which I lend the money below 4.50% + Euribor. You can never lend to a higher than stipulated type as a maximum.
If you choose to support the SME and lower the rate to, for example 4% + Euribor, in the investment system for auctions you enter a priority list at the close of the operation which means, that the operation can remain open a maximum of 21 days according to the Law and once the loan amount is completed, the platform performs a “macheo” among all the investors that have participated giving priority to those who have lowered the interest rate. Therefore, the investors that finally invest the loan will be those that have most supported the SME or whose interest rate on which they put the money in the operation, be lower.

So while the operation is open (maximum 21 days) and although it is 100% complete, investors can continue entering and indicate the amount they want to allocate to the funding of the operation since it will only be when the employer decides to close their operation or at the end of the 21-day period, when the final investors investing in the loan are determined based on the minimum interest rate criterion.

One of the problems of the auction system is the uncertainty that creates the investor since he does not know if he finally invests or not in the operation until the end.

Investment Marketplace or direct purchase

This type of investment is what we use in MytripleA. The operation is completely the same but there is no interest rate criterion. The investor that decides to invest in an operation may do so at the maximum rate knowing from that moment that the investment operation will be effective, that is, it will end up entering the operation.

Once the 100% is reached, the amount requested closes the loan, not giving an option for more savers or more funds that are actually needed to cover the loan.

In this way, the company obtains the loan more quickly and investors know from the moment of the request that they will finally participate in the loan- i thought about this.

Keep in mind that the last word is the employer, and can occur in the case you decide not to sign the loan. In this case, the investors will recover the total of the money invested immediately remaining available in their panel to be able to invest it in another operation.

Another advantage of the direct investment system is that the investment is easier to understand and realize since only with registering, indicate the amount destined to the funding of the loan and the type (maximum or inferior), the investment is yours.

Tips to attract traffic to your website with a corporate blog

Image result for corporate blog One of the most important pillars to attract traffic to our website is to work with a corporate blog. The content strategy is a fundamental part of digital marketing, but what does this mean? The planning of a good corporate blog will be the tool that materializes this content strategy and will be a key piece for attracting users if its content is planned correctly.

In this article, we will review the concept of corporate blog and give some clues or tips to enhance this tool that contributes to the improvement of brand image or branding , SEO positioning, traffic to our website … and other advantages that will be discussed here.

 

What is a corporate blog?

Image result for corporate blogThe corporate blog is a content marketing tool for the company that must be perfectly planned and contain updated, frequent information … allowing the reader to get closer and know more about the company, also providing added value with interesting information for the reader or potential client.

 

Advantages of a good corporate blog

 

The advantages of the good use of the corporate blog are diverse. Let’s see some of them:

Generation of quality traffic for your web page

Generation of quality traffic for your web page

As the corporate blog is intended to create added value for users and improve the user experience , Internet users who go to that space on your website, is quality traffic interested in your content.

Increase in potential leads

Increase in potential <em>leads</em>

This advantage goes hand in hand with the previous one. If the traffic attracted to your blog is of quality, it is possible to convert it into potential leads . A contact is called a “lead” that we get from a potential client. It is important to treat this contact a posteriori in order to convert it into a real customer.

To obtain leads or data from potential clients, it will be necessary to use subscription forms to the newsletter , downloads of guides or useful documents, courses … that allow collecting the personal data of the visitors.

Improvement of SEO positioning

The internet giant, Google is the protagonist of SEO positioning. To be able to be, both in its first results and those of other search engines, after a search, the creation of a good corporate blog and, therefore, of relevant content will allow us to position ourselves in a better position.

For this to happen it is necessary to have carried out a good study of key words or keywords to generate relevant content around it. Do not forget that the main mission is the quality of the content.

Empowerment of branding

Building an identity or improving the brand image will be easier if you share it in the corporate blog. The philosophy and business culture related to a series of positive factors is immediately promoted by the reader or visitor.

It increases and improves online reputation and brand notoriety since the brand image is created and related to positive factors developed in the blog, it sits in the minds of users in a less intrusive way than with traditional advertising.

 

In order to get the most out of it and benefit from these advantages, what advice should I take into account?

 

Tips for creating a good corporate blog

Image result for corporate blogIf you already have a corporate blog or if you want to start creating one and be able to benefit from the above-mentioned advantages, evaluate these tips that we give you to be a strong tool for attracting potential customers for your company:

Determine the target audience or target of the corporate blog

 

Answer the question: who is my audience? It is the main answer you should find before you start writing.

Subsequent to know who they are, is to discover what they need and how they behave to be able to address them by providing added value and solving their problems, concerns or needs.

Investigate and collect information on the theme of the corporate blog

When you have analyzed the needs and behaviors of the audience you are going to address, you have to investigate the content you are going to write. You must try to discover through an analysis, what are the most wanted, most interesting contents …

In this way you will be able to build an editorial calendar of relevant content that will contribute that usefulness to the public.

Importance of the post title of the corporate blog

When the subject of the post that you are going to write is decided, looking for a title that encourages readers to read and share your content is very important.

Content structure of the corporate blog

Having optimized the elements that make up the corporate blog is essential.

The titles, the images, incorporate multimedia content, infographics … in short, make it attractive, build a simple structure that facilitates the understanding of the reader is the goal to pursue.

Define the frequency of publication in your corporate blog

Define the frequency of publication in your corporate blog

There is no established frequency that is “mandatory” but it is necessary to be persistent and continuous in your publications. This control can be carried out together with the contents in an editorial calendar that relates the dates of publications with the topics on which it is going to be written.

One post a week, determine what day you publish … are routines or habits that you can create your audience.

Promote the corporate blog in networks

If you want the user of your corporate blog to share what you write, the main thing is that you do it.

In the networks of your company, external campaigns … are recommended actions to enhance the relevance of your blog.

Measure results of the corporate blog

For all the actions, campaigns … that you carry out in the company, have to do with digital marketing or not, it is essential to keep track of results.

Detect errors and amend them is important to increase the effectiveness, in this case the blog if the goals that you prefixed before you start writing or enhance efforts in this tool are not consequent.