CROWDFUNDING FOR BUSINESS START UPS
Are you still concerned about where to source for funds for your new project? Or are you an entrepreneur in search of the capital to invest? You may worry about the legitimacy of the various saving schemes as issues of dishonesty and fraud sets in. Crowdfunding can provide a better alternative. Crowdfunding involves making use of little capital from a large and varied number of people for the purpose of financing a business.
What crowdfunding offers your business is that you can generate a large pool of investors. They will have a stake in your business. By doing so, you are creating an avenue to form partnerships, connect with people and expand the capacity of your proposed business venture. Your investors are not limit to your geographical location. You should also not limit the source of your finance to interest laden financial institutions.
There are investors out there willing to put their money into the next big thing. Entrepreneurs in the Tech industry for instance, have seen tremendous pool of investors over the couple of years. Indeed, they are on the look out for you. Crowdfunding sites such as Kickstarter and Indiegogo are veritable online platforms, where millions of dollars are put on the line by investors.
It gives you the push you need for that great business idea that’s about to shake the world. Be it a mobile app, software, establishing an NGO, fashion and manufacturing outlet. Crowdfunding not only raises awareness but it also provides the needed monetary boost. You don’t have to go through the bureaucracy when approaching banks for loans. In addition, you will worry less about the high interest rate.
What Investors stand to gain
An entrepreneur who is willing to allow others contribute financially must be willing to share the ownership and control of the business. Investment Crowdfunding is having a stake in business, partnering while expecting returns on investment. Although, in terms of business operation and day-to-day managerial functions, they are passive. Investors receive equity shares as agreed upon by parties.
In some other instances, an investor may decide to raise funds for your business with the aim of receiving interest. Your deal making skills such as negotiating skill and bargaining power will be put to test while dealing with prospective online investors. Communication is done online and there may not be any meeting point for one on one interactions. Crowdfunding is a reminder to the virtual world that exist today and how business transactions have evolved.
Investment Crowdfunding is not a fund raising dinner, neither is it a charity. Crowdfunding investors are rational human beings. They have goals and aspirations and their motives are for the purpose of making profit at the end of the stipulated period of time. They expect a return on investment. If you think they are so nice not to be expecting, you need to wake up to the business reality. Agreements can be reach base on a borrower’s credit rating and credit risk involve. If the risk is high and unfavorable to the business, then you can decide whether or not you can continue. It’s a free world.
Looking for the capital to kick start your new business? If crowdfunding is not an option for you, try approaching a bank. If you’ve been rejected from a bank as well, always approach a licensed moneylender. Loansharks are never the solution. They bring you more problems than solutions. Best Credit SG Pte Ltd is a licensed moneylender in Singapore. We have the lowest interest rates you can find in Singapore! 🙂 Drop us a message or call us at +65 6272 5538. Drop by our office for a free consultation @ Blk 372 Bukit Batok Street 31 #01-374 (Level 2) Singapore 650372