For many new entrepreneurs, the idea of instant business loans sounds like a very good idea. However, today there are many options for starting up a small business. Some of the most common sources of financing for a small business start-up is family loans from uncles, brothers, mothers, fathers, grandparents and so on. In the United Kingdom, the majority of small business startups were funded by relatives. It is quite possible that the majority of small businesses are funded with seed money from relatives in the United States as well.
This is one of the easiest ways to fund a small business where the terms are either verbal or written so that the loan will be paid back or shares in the success of the company are made available to the seed funding relative, should things go well.
A very popular and growing method of garnering seed funding for a garage start-up are websites such at gofundme dot com. By signing up with a Facebook account or with an email address GoFundMe will provide a Facebook page and communications online with friends and family to start the ball rolling for fundraising. GoFundMe will keep 5% of each donation received. The payment system, WePay charges a fee of 2.9% plus .30 per donation. These are expenses for using their social media and banking website. There are no interest or monthly payments to worry about and a credit score is not at all needed. This is one of many crowdsourcing methods of gathering funding that are now available aside for conventional funding for small business start-ups such as business loans. Many are raising funds this way which frees start-ups from the potential of meeting monthly loan payments.
This is a great way to obtain funds that are free of interest or payback requirements. The funds come from donors who support the cause. The GoFundMe provides services such as five-minute email support, mobile friendly campaigns, and an app by GoFundMe to run the campaign. There are no deadlines or minimum requirements for the fundraising effort. All donations are kept for the particular cause.
The more high profile the cause is, the faster the funds can be raised. Awareness is often raised online with social media as well as news coverage such as was the case with the recent beating of a special needs victim who was abused by four black assailants for being a Trump supporter who also tortured him after kidnapping him.
The campaign that was started on the victim’s behalf has raised over $50 thousand dollars already. His case became immediately highly visible as it was live streamed on Facebook by the four black assailants. This was a sad situation for the victim, however, the compassion for him was also rapidly monetized with this type of crowdsource funding.