4 Options for Funding Websites for your Business

When it comes to funding a business, there are many options out there to choose from. You won’t know what option is right for you unless you have been able to evaluate all your options. It seems each day new funding websites are popping highlighting an even new form of alternative lending. The options can be confusing and overwhelming to most. That is why we are here to warn you, before you ever commit, make sure you know the risks, the terms, and how this will impact your business in the short and the long-term.

Before we break down a few different funding websites, we think it is important to define what crowdfunding really is.

Crowdfunding is rising in popularity as a social way for the common person to get involved in early stage investing. Prior to the introduction of social funding, most early stage venture funding was limited to those who had extremely deep pockets. Thanks to the power of the internet and social media, the average person is able to be part of the game. This is an alternative financing option for businesses, non-profits, and individuals to raise money for a cause or idea they are passionate about.

Are you thinking of jumpstarting your business with a funding website? Consider these crowdfunding options:

  • Kickstarter
    • This is an extremely popular crowdfunding platform that will allow you to determine what you want to give away in exchange for funds.
    • One thing with Kickstarter is you do not get the money unless you reach your goal. So make sure you set reasonable expectations, otherwise your time and effort will not pay off!
    • With this option, you can have many different levels for people to give too. With each increasing level, their expectations of what they are getting in return will go up.
  • GoFundMe
    • GoFundMe has risen in popularity over the last few years when it comes to funding websites. You can use it for just about anything, not just businesses. If you have a crazy idea or are trying to raise money for a cause or charity, this is a great funding website option! You can find practically any type of campaign on this site including:
      • Raising money for someone’s funeral
      • Raising money for medical payments
      • Business venture funding
      • Education funding
      • The list can go on and on…
    • GoFundMe is a very popular option for social media users.

What are the risks of using funding websites?

One important thing to note when it comes to crowdfunding is that you should be prepared with what you are willing to give up in your company. Each website is different. GoFundMe is more donation based, finding its popularity with people who are simply looking to give money to ideas they believe in or causes they want to rally around. Kickstarter often has businesses that are looking to give away products in exchange for the funds. With the different tiers, we referenced above you will want to be careful that you know exactly how much you are giving away. You don’t want to raise all of the funds and then turn around and give it all away in free products.

Are funding websites for everyone?

When it comes to crowdfunding websites, the answer is no. Not every business is set up for something that the social world of the internet is going to want to “donate” money too. You will have to weigh the pros and cons of this method, the cost of creating a campaign, advertising, and marketing the campaigns so people know about it, and many more variables. If you are just looking to get access to cash quickly without giving up any products or equity, consider the many other options that are out on the market like a merchant cash advance.

There many advantages to working with us including access to cash when you need it, a simple application form, and an over 90% approval rating for those that meet our minimum qualifications. If you want to learn more about the merchant cash advance product that we offer, take a look at our website.

Contact us today and let us answer all of your funding need questions!

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