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jfab
02-05-2014, 08:06 PM
I could say this with full conviction that running to banks for this matter will be a nightmare. It's best to go for crowd funding, raising the funds yourself and save up than go to loan sharks. You will just end up stress about this plus you will also pay for interest rates which is still big money if you calculate the total accumulation for the months or years that you will be paying it.

cpefley
02-05-2014, 11:35 PM
I agree completely! Crowd funding and raising funds yourself will save you the headache of corrupt banks, interest gouging and bank do not have your best interest at heart. They don't care if you succeed, as long as they get their money back.

gHiros
02-06-2014, 02:19 AM
I've heard of online companies like "The Lending Club" and "Prosper". Are they considered "crowd funding", too? In your opinion, what is/are the best of the best when it comes to crowd funding?

delusional
02-06-2014, 04:33 AM
The problem is that most people can't raise the money themselves. That's why they go to banks. Crowd funding isn't always advisable. If you don't have anything significant to offer, you are going to give away equity and that super stupid in a beginning stage of the business.

Rainman
02-06-2014, 05:20 AM
I've heard of online companies like "The Lending Club" and "Prosper". Are they considered "crowd funding", too?
The sites you mention are technically called peer to peer lending sites. The members of such sites pool their money and lend it other people without going through any financial institution. They charge lower interest rates than banks to induce more people to borrow from them while those who invest their money earn slightly higher returns than what banks would pay them if they kept their money there.

novasparker
02-06-2014, 11:15 AM
Prosper and The Lending Club aren't crowd funding, they are crowd lending. The main issue is that by raising capital through crowd funding, you don't have to pay the money back. You do usually have to offer something in return for a donation to your cause, like a free copy of an album being created with the funds, etc. But you don't have to pay back the money. Peer to peer lending, or crowd lending is just like a bank loan in that you are charged interest and you have to make regular monthly payments. There are no real underwriting guidelines, except that you do have to have somewhat decent credit to list your loan.

Lodismel
02-06-2014, 01:02 PM
It is definitely a pain to try to finance things with Loans. Even if it's something like federal student loans it still feels like you've put a huge weight on yourself. Better to save up. It's not always possible though. Some times you have to bite the bullet and take out a loan. Which isn't the end of the world.

mikka254
02-06-2014, 03:56 PM
This is very smart thinking and I commend you for it. Going to loan sharks is never an option. It's better to borrow money from family although working and slowly saving up the money is the best option. Loan sharks are predators and a liability to your company's growth potential.

DomDom
02-06-2014, 05:26 PM
This is very smart thinking and I commend you for it. Going to loan sharks is never an option. It's better to borrow money from family although working and slowly saving up the money is the best option. Loan sharks are predators and a liability to your company's growth potential.

Exactly! The best thing is to start saving from a young age and when that great idea you have comes to you you have your capital ready to go! Any kind of borrowing is always a risk and an obligation (which may actually positively motivate you though) so be careful about it!

pandandesign
02-08-2014, 03:12 AM
I would say this sounds like a good plan. I haven't heard many people go for this idea because they have said it's too risky, but you should probably know better. One thing though, make sure when you have figured out which way to go, you have to be cautious about it because there are always risks. Do what's best for your and make sure there's no residual because that's what you're going to go after when something happens.

Spiff
02-08-2014, 03:40 AM
Being a college student, I am completely used to borrowing money. As long as you are sure of yourself and your abilities, you shouldn't have a problem borrowing from a bank. It's those darn college loans that bother me the most. When I first started schooling, I was really stupid and I had no idea what I wanted to do. I went to a couple different expensive schools and wasted a whole year and thousands of dollars just because I was unsure. Now that I have some direction and idea about starting my own business, I feel like once I build up my credit, I will have no problem borrowing from the bank. I have been paying off my student loans at a very fast rate. I would like to borrow from my family or my friends, but they just cannot afford it. And, since I don't want anyone to steal my idea, I am skeptical about raising the funds any other way. Sometimes, in order to follow your dreams, you have to take a little risk. Even if you do save up or earn your money from trusted sources, it is very risky to start your own business no matter how you do it. Also, I would like to start while I am young and do not mind a little risk!

fredkawig
02-08-2014, 08:27 AM
That is absolutely true, you should as much as possible avoid having loans with banks and giant corporations as they would double or triple your debt in a couple of years. I have known some people who can't even pay the interest as it grows bigger each month.

jubvman
02-08-2014, 11:59 AM
I couldn't agree more! Lending money is the worst, especially with high rate of interest.

When starting a business it's best to keep overheads low so there is less risk. If you need extra money, I would consider crowd funding but nothing more.

Francisco23
02-11-2014, 04:41 PM
I could say this with full conviction that running to banks for this matter will be a nightmare. It's best to go for crowd funding, raising the funds yourself and save up than go to loan sharks. You will just end up stress about this plus you will also pay for interest rates which is still big money if you calculate the total accumulation for the months or years that you will be paying it.
I get you. It's always a better alternative to get your own capital. Personally, I can share with you that there is a lot of free money out there. In 2011 I decided to start some forex trading. I tried it out with just US$5. What do you know? In a matter of weeks I had US$80. I had to start somewhere will the least risks. I ended up building up enough free money based on making the right strategic moves with sense and less greed, and now have this money rolling over to put in my other sales business. Getting your own capital is ideal. I want no loan shark taking away my stuff or my wife's stuff. LOL.

Francisco23
02-11-2014, 04:43 PM
I couldn't agree more! Lending money is the worst, especially with high rate of interest.

When starting a business it's best to keep overheads low so there is less risk. If you need extra money, I would consider crowd funding but nothing more.I prefer to be the lender and the borrowing. You have to be very innovative in business. A few years ago, I learnt about investing in companies overseas. I never knew this was possible. So, investments is my main source of income and CAPITAL for business start-up.

Taru
02-27-2014, 09:18 PM
I agree, sometimes it can be pretty stressful having to keep up with payments, but in my opinion, I think it's just necessary sometimes and it doesn't even have to such a nightmare. As long as you plan well for it and know of how you are going to pay it off with both a plan A and B even before you start taking out loans then you would be relatively safe and wouldn't have to resort to waiting too long for your capital funds to build up. Crowd funding is a very good alternative, though, and I will fully agree with you there. It's a lot less risky and this way you end up spreading the risk among many people instead of just one entity which does tend to lessen the sting when or if the project falls flat.

crimsonghost747
02-28-2014, 02:58 AM
That is absolutely true, you should as much as possible avoid having loans with banks and giant corporations as they would double or triple your debt in a couple of years. I have known some people who can't even pay the interest as it grows bigger each month.

If their loan contract has somehow managed to increase the interest percentage during the past couple of years, then they are definitely at the wrong bank. Also if they double or triple your debt in a couple of years, wrong bank again. Sounds to me that either those people have really been screwed over when choosing a bank or they simply took a loan they weren't capable of paying in the first place.

My local bank offers roughly 2% interest per year. So for a $50k loan that would make 1k of interest each year, or $84 per month.

janineaa
03-01-2014, 09:50 AM
I think crowd funding is good to lean into if the particular project has benefits. It's a good way to get word out about the project you want to set up and why you need capital. I't's a good way to get people together with a common interest and from there, the project can be built.

DomDom
03-01-2014, 03:44 PM
Felix Dennis says the best way to go about your business are the small fishes. Not banks or institutions but small normal people you know!

DarioEM
03-02-2014, 06:28 AM
Online crowd funding is a relatively new concept in the world of business and a super excellent way to raise funds for any type of project.
Try doing this 50 years ago and it would have been 1000x harder to get people across the world to fund your project.

It's a new age we're living in and things are moving at a faster than ever rate.
People who have access to the internet have only themselves to blame for their circumstances, with the internet you can literally change your life overnight if you know where to look. :D

Thanks for sharing!

gilsulate
03-22-2019, 07:50 AM
The problem is that most people can't raise the money themselves. That's why they go to banks.