Various available Small Business Financing Options
The crowdfunding law refers to an act of offering funds to a Participating Party, a non-profit organization, group, or individual, who makes an offer for capital from an external source, and who expects to receive repayment from that source.
The crowdfunding law also states that a crowdfunding platform is any legal or natural individual who offers or provides alternative capital funding services in the country of Belgium and that it is not a supervised enterprise. The term ‘crowdfunding’ has recently been in the news due to the success of one particular group, called ‘The Do Not Buy brand’, which raised enough money to launch its television commercial and launch a new store. However, this was just one of several successful crowdfunding campaigns in Europe.
The Do Not Buy campaign raised a total of seventy-five thousand pounds. However, the Do Not Buy campaign used an alternative fundraising service, which was invoice factoring. This is where the seller collects payments from factoring companies and transfers them into bank accounts, with the seller retaining the final amount. Although this may sound like an unusual way of collecting capital, the factoring companies are regulated by an independent body so this is a legal and legitimate way to collect funds.
The Do Not Buy campaign also utilized a variety of alternative funding services and this is something that is becoming more common. A common alternative funding service is known as an ‘asset-based lender’. This would be a creditor who takes collateral for your loan and then allows you to use your home as collateral for your loan, should you default on your payments.
Many different types of collateral can be used for your small business financing needs. Many lenders will accept properties, personal assets, office furniture, cars and trucks, and even boats and yachts. It depends upon your financial situation and the needs of your company when you are looking at different types of collateral. You can usually learn more about small business financing options by consulting with a local attorney or doing some research online.
Another method that many small businesses use when in need of short-term financing is to issue equity through their credit cards, with the understanding that the interest rates on these types of lines of credit are usually a bit higher than traditional loans.
You can also get alternative US business funding through various investment opportunities, including borrowing money from family and friends. Many investors will provide you with a line of credit based on the equity that you have accumulated. Whatever your situation may be, there is a solution that is available to you and many other small businesses have been able to capitalize on the equity in their businesses.
With so many different forms of business financing available to small business owners today, it can seem almost impossible to find the right one for your situation. It is important that you do your homework and speaks with an experienced Alternative Funding Services company to help you make the best decision regarding your business financing needs.
