5 Crowdfunding Tools to Find Financing for Your Small BusinessLinda Jenkins, February 27 2015
Are you a small business owner hoping to increase capital for your company? Or do you dream of launching your own startup, yet realize your company is too young to get financing through traditional means? Thanks to crowdfunding, ambitious new business owners have a cornucopia of funding options at their disposal. If the thought of asking your neighborhood banker for a loan makes your stomach lurch, you might want to consider the possibility of using crowdfunding or crowdlending to grow your small business. Following are five helpful options you can consider:
Invest Next Door
Invest Next Door is available to US-based businesses. Business owners are able to list details of the type of funding they are looking for, including financing specifics like length of funding and repayment procedures. Interested investors can review a variety of businesses hoping to receive funding and pick business owners they believe to be sound financial investment candidates. An owner seeking funding can choose to accept financing from either a single investor or multiple investors.
Available to both UK and US-based businesses, Funding Circle connects small business owners with approved investors. Funding candidates can take up to five years to repay their investors and can even repay their investors early without worrying over early repayment charges.
Lendio helps business owners find funding by offering a variety of potential financing options. Borrowers are able to choose the financing option that best suits their long-term goals without having to approach traditional banking institutions to request a loan.
Rebirth Financial specializes in peer-to-peer lending. Whether you are hoping to refinance your business loan or sell your company to an outside investor, Rebirth Financial can put you in touch with the appropriate resources. Options include everything from startup loans to commercial building loans.
Created by startup founders for startup founders, Fundable is a Columbus, Ohio-based firm focused exclusively on helping small business owners raise capital. Fundable is one of the fastest growing crowdfunding platforms with over $200 million in committed funds. (fundable.com)
There are a growing number of funding options now available to small business owners. No longer do motivated individuals have to rely on big banks and credit unions to fund their business dreams. Thanks to the rise of crowdfunding, business owners now have more funding options to consider than ever before. Will you be considering any of the above-listed crowdfunding tools for your small business?
You should also read: Entrepreneur's Cheat Sheet: Top Tools for Finding Funding