Crowd2Fund urges SMEs to consider crowdfunding
Crowd2Fund has urged small- and middle-sized enterprises (SMEs) to explore all available financing options, including crowdfunding.
The business lender described crowdfunding as a “non-traditional route, offering a practical way to raise finance in a unique way,” but added that SMEs should do their research before choosing a provider.
It comes after a NerdWallet survey found that just 10 per cent of business owners had faith in high street banks to offer the best funding deals.
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Crowd2Fund explained that SMEs seeking finance away from traditional banks should be careful to choose the right crowdfunding platform.
“At Crowd2Fund we raise finance from private investors at scale through the online marketplace and community,” the company said in a blog post.
“In addition to raising finance, our clients also gain the opportunity to promote their business through a marketing campaign. This provides entrepreneurs with a more personal experience where they can connect with the community of investors.”
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The company explained that equity fundraising was good for early-stage businesses looking for growth funding, while P2P lending is “a similar model that may also involve debt but is more common among smaller groups of high-net-worth individuals.”
Crowd2Fund added that crowdfunding works best when entrepreneurs are engaged through the raise.
“As entrepreneurs ourselves, we understand time is tight,” the lender added. “ So we’ve created a simple and effective campaign process that requires less work and more peace of mind.”
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