Financing undertaken by individual is in full development in recent years. Also called crowdfunding or crowdfunding, this financing technique consists of allowing individuals to invest in a business creation or development project. For this, the company receives small amounts from several individuals to finance the project . The total of these small amounts allows the entrepreneur to raise a large sum without worrying about the constraints of repayments and interests. An assessment at http://deafbg.com
To do this, crowfunding comes in several forms of support, such as the loan, the subscription of a security at the level of the company or in-kind consideration. To give people more visibility on this type of financing, it’s good to know how a company is lending money, and then, what are the advantages of individuals to finance businesses?
Companies, how do you lend money?
Crowdfunding is a financing technique that generally uses the internet to connect the project leader and the individual financers. To do this, companies make presentations of their projects to be financed from a crowdfunding platform , such as ReadyGo . To do this, they indicate their objective, the operations to be carried out with the crowdfunding collected, as well as their career as project promoters. This information consists of promoting entrepreneurs , but also their businesses , in order to solicit the interest of individuals who wish to make a crowdfunding. Thus, the crowfunding platform studies each file and submits it to the investors present on their site .
Individuals, why is it advantageous to finance businesses?
For individuals , financing businesses has many advantages. Indeed, this type of financing allows lenders to diversify their savings into micro-enterprises or SMEs and thus obtain a profitability often higher than the traditional savings offered by banks. In addition, crowfunding offers the investor the benefit of a close or sometimes direct relationship with companies. On the social level, crowdfunding allows individuals to contribute to the development of companies by participating in the start-up of new projects or the extension of small structures. For both parties, transactions related to corporate financing by individuals are generally secured by the possibility of taking out insurance.