Crowdfunding For Business – An Alternative Finance Source
Would you consider crowd funding for business? Put simply Crowdfunding is a concept that allows Businesses to raise finance from private individuals rather than through the more conventional, but often less accessible, Banking route. The way it works is that the Business presents a case (via the Crowdfunding Platform) for why they need a certain level of finance. Investors (in some cases you & me - The public) are invited to provide whatever level of finance they think appropriate; in some cases as a loan at an agreed rate, in others in return for equity in the business. Most Crowdfunding Platforms offer one or other option, a few offer both.
The concept has been proved in many cases to work well. The problem for the Business owner is to choose which Crowdfunder is most suitable for their needs.
At BFS we have carefully selected a number of crowd funding for business sources to work with, all of whom offer different funding solutions, so that we can offer our clients the best possible option with the highest possible chance of raising the funding they seek. Of particular note is that in 2014 we (BFS) were appointed as one of an exclusive band of “Sponsors” for ThinCats, one of the UK’s leading Crowd Funding For Business Platforms who specialise in loans from £100,000 up to £5 million. We are also official Introducers for Funding Circle and CrowdCube.
It is important to understand, however, that whilst Crowd Funding is an innovative and valuable addition to the Business Finance arsenal, it is only AN alternative and not THE alternative to traditional Bank lending. Indeed it only represents a fraction of the “Alternative Business Finance Market”.
For more information on Crowdfunding for business and whether it is relevant for your business needs, follow this link to our Blog on the subject: (Link to Blog on Crowdfunding).