Marketlend Academy: Investor Survey Results

The investor survey results are in!   We were genuinely surprised by the strong response and the results and believe it is worth sharing them with the wider community since many SMEs can benefit from understanding what investors are really looking for.

While not scientific, one of the most interesting things to note is how more “subjective” elements like strength of brand or originality of concept didn’t carry much weight with investors when it came to evaluating an investment.

Even more interesting were some of the independent comments on what matters to investors which we learned from asking respondents to contribute things that didn’t fit in multiple choice.  Here’s a sample of what we learned:

  • The honesty and integrity of all involved, platform included, is absolutely vital.
  • 1. I believe a list of account suppliers should be submitted and some should be contacted randomly without notice of the borrower to find out whether they pay on time full. 2. All directors should be interviewed and asked random questions on the company and borrowing money. They should also be compelled to sign a supplementary document stating they are aware of the loan its conditions and they understand completely. I do not mean one of those ridiculous solicitors forms, and you insist it be done in front of a solicitor of your choice, not their choice. 3. Ask what type of car they own and whether financed. 4. Make a surprise visit and be a customer to see how they perform delivering their service or product. 5. Consent to judgment in the event of default so you are not in court suing under a personal guarantee for 4.5 Million plus costs on a loan I made. 6. Consider in expanding your horizons where you lend against T.A.C claims and also a case such as mine? People need money and will J.V. these claims and put a corporate up as a firewall for the transaction, so the credit laws are bypassed. These come to mind now. However, I will expand later in the week as I find this an interesting question as to me these questions a part of the platform in providing a loan.
  • I look at the character / integrity of the people as best I can assess it. Even if the business goes down, the best quality people will find a way to meet their obligations.
  • The uninsured loans I have rejected (most) have lacked credible purpose for funds or credible sources for existing funds or the documentation taken as a whole lacks veracity.
  • When investing in a company and judging the likelihood of them defaulting, I take into account total equity.
  • I like to see evidence of tax payments in statements.

To view the survey answers, click here.