Business and Management

Crowd Fundraising: Way To Finance Your Business

The methods to finance your business start-up have been around forever, probably since the very first business opened its doors. However, we live in a different world today. Many of those old options have disappeared. You can also know more about crowd fundraising via to finance your business.

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Home equity values are down or underwater. Even some of the new players in the start-up business capital markets have dried up over the last few years. But, as with every challenge in business, where there is a will, there is away. 

There are some common methods of start-up business financing should not be:

Social networks

We have seen more and more companies create platforms to bring lenders and borrowers together. Now, this is not for professional lenders to find businesses and ideas to lend to but for people from your social networks who seek better results on their income than they could get from their bank or even the stock market.

Owner financing

For those seeking to buy a business, more and more are turning to owner financing. Here, the buying person only has to come up with 10% or 20% as a down payment and then let the business itself make the monthly loan payments for the remaining. 

While this was not such a hot option a few years ago, more owners looking to exit their businesses and struggling to find buyers with cash or the means to acquire the capital needed – have once again opened themselves to this form of financing.