Monday, August 31, 2015

Launching Your Startup's Crowdfunding Campaign!

Launching Your Startup's Crowdfunding Campaign

Written By Douglas Castle For Global Edge International

NOTE: This article should not be construed by the reader as containing or offering any financial, investment, legal, tax or accounting advice. Any financial computations, tables, projections, or statements are presented for illustrative purposes exclusively. Global Edge International Consulting Associates, Inc. [GEI] assists companies in creating and constructing their crowdfunding campaigns. For further information regarding this, see http://bit.ly/GEIserve . This article is copyright 2015 by Douglas E. Castle, and it may not be reproduced or republished without the author's express written consent unless the article is reproduced in totality without any changes or deletions, all links and images are kept intact and functional, and proper attribution is given to the author of this article and GEI.

The four types of crowdfunding, simply stated, are: (1) donation-based, (2) reward-based, (3) equity-based and (4) debt-based.While this article will only be dealing with reward-based crowdfunding (i.e., where no charitable contributions are solicited and no offerings of equity or debt securities are made), it is useful to understand the distinctions among the four types.

In donation-based crowdfunding, the crowd gives money or some other resource because they want to support the cause. One example is a youth baseball which is raising money to travel to a tournament. The crowd gives money and gets nothing in return, other than the good feeling that comes with knowing the team can travel to compete.

In reward-based crowdfunding, individuals forming the crowd give money to a business in exchange for a “reward,” typically the product or service that that particular company produces or provides. Reward-based crowdfunding has been made popular by crowdfunding sites such as Kickstarter and Indiegogo.

With equity-based crowdfunding, members of the crowd become part-owners of the company which is raising funds. In other words, the company sells some or all of its shares to the members of the crowd. As equity owners of the company, the crowd realizes a return of its investment and, assuming the company performs well, receives a share of the profits, in the form of a dividend or distribution.

With debt-based crowdfunding , the company raising money does not sell shares, but instead borrows money from the crowd. The individuals lending the money receive the company’s legally binding commitment to repay the loan at certain time intervals and at a certain interest rate.

At the present time, the most popular and least complicated type of crowdfunding arrangement is reward-based. It does not involve legal or regulatory filings and it does not cause any dilution or sacrifice of equity; further, it actually creates prepaid sales of the company's early-stage product or service. Not only are funds raised to finance the company's operations, but a customer market is also being built at the same time. Every contributor is a customer. If you have a very large group of contributors, even if the average amount of each contribution is fairly small ($10.00 to $25.00), you've already made a significant entry of your company's product or service into the marketplace.

On the downside, since the average contribution amount tends to be so small, you'll want to be very realistic about just how much money you'll be able to raise through your pavilion on your selected crowdfunding website (sometimes referred to as a “portal”). While you might hear about a high-tech startup raising (and oversubscribing!!!) $12,000,000.00 on Kickstarter, cases such as those are in the distinct minority. The average crowdfunded reward-based campaign raises slightly less than $18,000.00. [sigh] Doing some quick math, if the average contribution (per contributor) were, say $17.50, it would require 1,029 contributors [$18,000.00/$17.50] to raise the full complement of $18,000.00. Wouldn't it be better if you could raise the average contribution level to $25.00? – then you would only need 720 contributors in order to complete a $18,000.00 crowdfunding raise.

There's no doubt about it – crowdfunding is a numbers game, and your campaign has to appeal to a very substantial number of participants if you want to raise a significant sum. In addition, you might want to offer an aggressive system of rewards in order to raise the average contribution per contributor.

The fact is that your campaign must reach the maximum number of contributors at the highest possible average contribution per contributor in order to be successful.

After you've created a quick one paragraph summary of preceisely what your project will be doing (including the names of well-known companies which are comparable – for proof of concept, and including how and why your branded company will be different/better than these would be competitors for your marketplace), put together an excellent attention-grabbing “elevator pitch,” and created a well-crafted, catchy branding slogan for your product or service, here are the ten steps recommended by Founder Institute in order to make your campaign a stunning success:

Educate yourself about crowdfunding and choose the right platform

Having a successful crowdfunding campaign takes time, preparation, and hard work. The more you know about crowdfunding the better. Find similar campaigns to see what has worked. Look for market and price trends for rewards. See which press is writing about those campaigns and maybe reach out to the entrepreneurs for advice.
Choosing the right platform is more important than you might think. The obvious choices would be Kickstarter or Indiegogo, but there are pros and cons to going with one of the giant platforms. Every platform works in a different way – some specialize in certain industries, while others offer guidance and more hands-on packages. It’s important to pick the one that’s best suited for you.

Build pre-campaign momentum

Start marketing your campaign at least one to six month before you launch. Build your social media following and contact list, have people sign up for pre-orders, and reach out to press with a teaser video. Your goal should be to have 30% of your funds committed before you launch.

Gather contacts and evaluate your network

We recommend dividing your contacts into five groups, based on circles. Group 1 starts with your close family and friends all the way to group 5, which is relevant press/bloggers. Evaluate your network to help you choose your funding goal (see below).

Choose your funding goal

You want a number that is high enough to achieve your business goals but low enough that you are confident that you can reach your target. Compare how much capital you need verses how much capital you think you can actually raise. If the amount you need is drastically higher than what you think you can raise, consider raising money in multiple phases. Instead of trying to raise enough money to cover every cost and every milestone, just raise enough to get you to the next major milestone.

Develop your story: Video and Campaign page

Use your video and campaign page to get people excited about what you are doing. The more effort you put in the more likely people are to support you. People don’t want to back a haphazard campaign. Explaining how you turned your idea into a reality and why you need support is just as important as your actual product.

Entice people with rewards

Rewards are a great way to thank your backers and entice people to contribute more money. You should have 5-10 rewards at different price points to give people options. On the lower end you can offer a handwritten thank you card or a t-shirt. For the higher end rewards focus on custom product designs or VIP/private rewards.

Create a marketing plan and template everything

This is arguably the most important element of a crowdfunding campaign. If you expect to throw up a cool video and raise a $100k you might be in for a rude awakening. You need to tell everyone you know about the campaign and have your network tell their friends. Come up with a plan to leverage your network through social media, e-mails, personal phone calls, and networking. Your marketing plan should also include a strategic way to reach out to press to have them write about your campaign.
Template everything. This will take some organization and planning, but will save you so much time come launch day. Draft outreach e-mails, thank you notes, campaign updates, press release, and schedule social media posts (bufferapp.com is a great tool).

Launch time

This is the day you’ve been waiting for. After months of preparation and planning, it’s time to execute and share your unique vision with the world. While your campaign is live, dedicate time everyday to promote your campaign, read comments, respond to e-mails, thank backers, and send updates. Interacting with your supporters is crucial to building a loyal community for both your campaign and your company going forward.
Even though you’ve spent months planning, it’s important to do weekly evaluations during your campaign to make sure you are on track to hit your funding goal.

Throw a kick off party

A kickoff party is a great way to gain momentum on day one. Invite your close friends over for pizza and beer (or wine and cheese). Give them a brief introduction of what you are doing, have a tablet on hand for them to contribute, and encourage them to share the campaign link on social media.

Track everything
Track who contributes, what rewards are the most popular, and everything else in between. When people contribute thank them and ask them to share the campaign link with their network. If people haven’t contributed send them friendly reminders.

This is by no means an exhaustive list. Navigating your way to a successful crowdfunding campaign can be tricky and there is no guarantee you’ll be prosperous. It takes doing your homework and being diligent with the process. For many people, it’s overwhelming and hard to know exactly what to do, which is why picking the right platform is so important. No matter what happens stay focused and follow your passion. Hard work usually pays off, in one way or another, but that’s another blog post in itself!

If you follow the above program with all-out effort, diligence in the details and dogged persistence, you may well reach your capitalization objectives. And now for a few additional details...

Some additional details follow:
Item 1: Always thank each of your contributors with a personalized note;

Item 2: Periodically give your contributors updates about the campaign and about the progress of your company;

Item 3: Use free press release services weekly in order to spread the news about your campaign, your company and your progress;

Item 4: Be certain that you have an excellent “sampler” website or micro-site to support your service, product or company. Make it fascinating and captivating. Don't make it overly detailed;

Item 5: Be certain that you have an excellent video about your company and its services or products that introduces the members of the team and creates anticipation and excitement. Use your slogan as many times as possible during your video;

Item 6: Always deliver (on time!) the rewards you've promised to your contributors;

Item 7: Try to get one or more celebrities to become contributors to your campaign; this makes for excellent press and adds instant star power credibility to your campaign and your company.

Best of luck with your crowdfunding campaign. We'd love to read about your success!

Tags, Labels, Keywords, Categories And Search Terms For This Article:
crowdfunding, fundraising, capitalization, financing, campaign, Kickstarter, Indiegogo, platforms, promotion, GEIconsulting, Douglas E. Castle, startups, projects

Good luck in your search for capital, and thank you, as always, for reading me.

Douglas Castle for Global Edge International Consulting Associates, Inc. and The Global Edge International Blog

Please Join Me On LinkedIn

Please Follow GEI Consulting On LinkedIn

Please Like GEI Consulting On Our Facebook Page

Please Follow GEI Consulting On Google Plus

***************

This site is sponsored by Global Edge International Consulting Associates, Inc. ["GEI”]

Click HERE To Contact GEI, or telephone us at 1.212.299.5182.

Free Subscription to The GEI Business Daily!

Sign Up For Our Free GEI Newsletter!

Receive Our Free GEI RSS Feed!

Free PDF Download: GEI Complete Services Summary.

Free PDF Download: GEI Financing Services Outline.

***Follow GEI's Company Page On LinkedIn!

[Return To GEI Website]

Please Like GEI on Facebook...

Please Follow GEI on LinkedIn...

Please Follow GEI on Twitter...

Saturday, August 22, 2015

Increase Profitability With Zero-Based Budgeting

INCREASE PROFITABILITY WITH ZERO-BASED BUDGETING

By Douglas E. Castle For GEI Consulting

Originally Published In the GEI Blog

In business, our basic financial objectives are to 1) increase the number of units sold; 2)increase profit margin per unit sold; and to 3) decrease fixed and semi-fixed expenses – all of this so that our company may consistently maximize profits [assuming, of course, that we do not sacrifice quality and service standards] as operations continue. While we have neither the space nor time to delve into the revenue and unit pricing objectives, we can tackle the expense reduction issue head on by utilizing zero-based budgeting.

Typically, budgets are mapped out or structured based upon existing expenses, which are looked at line by line, and where each expense line is multiplied, too often unquestioningly, by some increase factor (i.e., some percent per month or some percent increase per year). When the budget variance reports (actual versus budgeted expenses) are examined monthly or quarterly, the previously mentioned approach artifically inflates the quality of performance; if this budgeting approach is continued unchecked, actual expenses will be consistantly lower than their budgeted amounts (as if operations were running quite efficiently) even as the company is losing money by the boatload by overspending. This simplistic time-saving type of budgeting, while exceedingly common, leads to over-inflated budgeted expenses, poor variance feedback, and consequently, to poor expense controls and policies. Some real-life examples:

==+ In very large companies, I have actually seen cases where discontinued departments and functions were actually given budgetary expense allocations because nobody cared to check on whether or not those departments or functions were still in existence. And this error was compounded with each fiscal year. Governmental departments and divisions of Not-for-profit entities are notorious for doing this, as are some For-profit entities – especially the larger, more structurally complex ones.

==+ In other large companies, I have witnessed a managerial mentality where “If we don't spend every bit of what we were budgeted for this year, we'll lose our allocation for next year. We'd better use it before we lose it!” This type of thinking guarantees expense inflation and incredible waste. And once again, governmental departments and divisions of Not-for-profit entities are notorious for doing this, as are regular For-profit entities – especially the larger, more structurally complex ones.

Needless to say (but I'll say it anyway) the two above procedural and mindset errors create tremendous financial problems as well as a crass distortion in the evaluation of actual performance. The possible “cure” for this erroneous protocol and reasoning is to employ a zero-based budgeting session at least once per year. The process is actually simple, and I've distilled it into several straightforward steps which you can follow to do a zero-based budgeting at some regular intervals throughout the year:

Step 1: Create a Budget Review Group comprised of major stakeholders and other participants who will not be threatened by the results of the process and who have a substanital interest in the profitability of the enterprise;

Step 2: Access a line-by-line expense budget (like the type you would use to perform a variance analysis) as a worksheet;

Step 3: Examine each line of the expense budget in terms of its utility. What purpose does it serve? Is it necessary? Should it be discontinued or continued? Is its relevance increasing or declining? Does it directly serve the purpose of generating profits or of supporting profitable operations for the business?;

Step 4: Eliminate budgeted expense items as appropriate. Reduce other expense items to their appropriate level. Remember that the key question to ask in a zero-based budgeting scenario is “Does this expense support revenue growth or production of goods or services to support those revenues?” Reconstruct the budget based upon these crucial revisited assumptions;

Step 5: Take the reconstructed budget and make the necessary eliminations, cuts and reductions to the actual business, as if you were looking at the business as an outside “efficiency expert” or cost accountant. This is a politically perilous step, as it will likely undermine some free benefits to certain individuals, destroy some hidden agendas by starvation, and stop the methodical step-by-step process of internal fiefdom-building amongst certain power-mongers within your managerial infrastructure.

Despite the temporary discomfort caused by the reshuffling which invariably follows a zero-based budgeting “correction,” the results are almost always worth the investment of time and effort. In sum, zero-based budgeting can give your organization a refreshed and clear prospective that will enable you to more readily serve the purpose of profitability for all stakeholders.

Reduce your corporate waste footprint with zero-based budgeting. Be environmentally-friendly.

Tags, Labels, Keywords, Categories And Search Terms For This Article:

zero-based, budgeting, business, financial, analysis, increase, profits, success, cost containment, variance analysis, GEI Consulting, Douglas E. Castle, financial analysis, accounting

Thank you, as always, for reading me.

Douglas Castle for Global Edge International Consulting Associates, Inc. and The Global Edge International Blog

Please Join Me On LinkedIn

Please Follow GEI Consulting On LinkedIn

Please Like GEI Consulting On Our Facebook Page

Please Follow GEI Consulting On Google Plus

***************

Please Follow GEI on LinkedIn...

Please Follow GEI on Twitter...

Friday, August 14, 2015

Insiders Are Selling Their Shares? What Should I do?

Insiders Are Selling Their Shares!

What Does This Mean?

And What Should I Do Now?

By: Douglas Castle For Global Edge International And The Global Edge International Blog

When insiders, particularly officers, directors and owners of large blocks of stock (5% or more of the total shares issued and outstanding) are suddenly starting to sell off their shares of stock in a publicly-traded company, especially one in which you have an investment, before you take action, extend your very best efforts to try and determine what the underlying reason for the selloff is. Depending upon that reason (or reasons), you may wish to either: follow suit and liquidate some or all of your holdings; just sit tight and maintain your position; or actually purchase more shares. While this article does not provide financial, tax, investment or legal advice, it may help you in making a more-informed decision in terms of your own investment tactics or strategy with respect to your investment in that specific company. Since we at GEI Consulting are extremely imaginative, we'll refer to the subject company as “Company X”.

There are a host of reasons why significant shareholders may be selling off their shares in Company X, and an outline of some of the most prevalent possibilities are discussed below:

==+ They have come to the end of a statutory, regulatory or contractual stock holding period, and they are selling off some of their holdings to establish some liquidity – this is, of itself, harmless and is generally acceptable, especially in the second or third year following an IPO, or after a year or two of having commenced a C-Suite position in a more-established company.

==+ They are either retiring or contemplating retirement (they are at an advanced age) to pursue personal interests, and wish to 'cash out' to enjoy the benefits of a financially-substantial departure from a successful career.

==+ They are selling off shares and either reinvesting in Company X or lending the post-sale proceeds to Company X, presumably because Company X is illiquid or is accumulating losses. This type of activity can either be interpreted as admirable and positive heroics, or as a prelude to a death knell in the event that the tight cash situation is not just temporary or seasonal.

==+ If they are selling off shares (which they might have gotten very inexpensively early in Company X's evolution, or through the exercising of options or warrants) and using the proceeds to buy additional shares, it generally means that they believe that the stock is undervalued and is due for an increase through a market revaluation.

==+ If they are selling off substantial numbers of shares and not reinvesting proceeds in Company X, it generally means (barring an individual holder's personal financial hardship) that they believe that the stock is overpriced and is headed for a valuation adjustment in the downward direction.

Depending upon the circumstances (some of which are set forth above) and the underlying reasons, take action appropriately.

In order to get information on these substantial trades by influential shareholders, some good sources are these:

http://insidertrading.org/

http://www.insider-monitor.com/

http://insiders.morningstar.com/trading/insider-summary.action

http://insidertrades.org/

http://www.insider-monitor.com/insider_stock_trading_report.html

http://online.barrons.com/public/page/9_0210-instrans.html

http://www.secform4.com/

Generally speaking, the pundits (they generally like to call themselves that) tell us that when it comes to aggregate insider buying and selling, the following general rule applies [although in taking a close look at the individual circumstances involved as described above in this article, the general rules are possibly a gross oversimplification]:

When the buyers outweigh the sellers (in terms of number of parties and aggregate volumes), insiders are generally bullish (optimistic) about the short-term prospects of Company X;

When the sellers outweigh the buyers (in terms of number of parties and aggregate volumes), insiders are generally bearish (pessimistic) about the short term prospects of Company X.

Also, in the interest of keeping our nomenclature crystal clear:

"Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC.

Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information.

Thank you, as always, for reading me.

Douglas Castle for Global Edge International Consulting Associates, Inc. and The Global Edge International Blog

Please Join Me On LinkedIn

Please Follow GEI Consulting On LinkedIn

Please Like GEI Consulting On Our Facebook Page

Please Follow GEI Consulting On Google Plus

***************

Please Follow GEI on LinkedIn...

Please Follow GEI on Twitter...

Monday, August 10, 2015

Peer To Peer Lending For Startups

PEER TO PEER LENDING FOR STARTUPS

If your startup or fledgling enterprise requires additional working capital, a peer to peer (sometimes abbreviated as P2P) business loan might provide a partial solution to your capital needs. These loans, which are generally in the $10,000.00 to $35,000.00 range (although there are exceptions in certain cases and larger sums may be available) are generally available for terms of between six months and five years, and they vary widely with respect to costs, terms and loan covenants. These sources are not constrained or subject to general banking regulations

While these loans are universally priced higher than bank loans, today's bank loan approval criteria make it extraordinarily difficult for a business with a limited operating history (or any small business for that matter) to obtain a loan. The loans available from banks and other traditional lenders look to such security as second mortgages on the homes of principals and also take into effect FICO credit rating scores – and, as we know, very few entrepreneurs have sterling personal credit reports.

Peer to peer loans may be a means of paying for some of the initial startup costs associated with commencing your operations, or as a bridge to the successful conclusion of a crowdfunding.

Author and expert Trevor Dryer has written an excellent article on the state of peer to peer lending as of the date of this writing. It is a must read for all entrepreneurs.

###

Understanding the Risks and Rewards of Peer-to-Peer Lending

By Trevor Dryer
If you run a small business, you probably know all too well the challenges of trying to get a loan. It can take days to research options and fill out inches-thick paper applications, only to wait weeks, and even months, to find out you were turned down. All the while cash flow is tight, and you’re struggling to hire new employees, manage inventory, buy new equipment, or open a new location.
As you may have experienced, getting a business loan has gotten more problematic during the last several years. The economic downturn in 2008 created significant obstacles for banks and other traditional “Main Street” financial institutions that traditionally lend to small businesses.

State of Small Business Lending

For example, many banks are increasing their capital reserves to comply with new standards initiated by bank examiners and other regulators, which can undermine a banks’ ability to underwrite small business loans. In addition, compared to large businesses, small businesses are riskier lending propositions because they are more sensitive to swings in the economy, have higher failure rates, and fewer assets to use as collateral.
Small business loans also are not as profitable for banks, because they cost the same amount to originate as larger loans. For this reason, banks tend to put less emphasis on lending in the sub-$500,000 range. This creates a large lending gap for small businesses, which tend to seek out significantly smaller loans; 70 percent of small businesses seek loans of less than $250,000, with more than half of those needing loans of $50,000 or less, according to the Federal Reserve’s “Small Business Credit Survey.”
Realizing an opportunity to reach an underserved market and building on the trend of crowdfunding, new types of small business lenders have emerged. Funded by Wall Street investors, these online and peer-to-peer lenders–such as OnDeck and Lending Club–are leveraging technology and user-friendly Web-based application processes to quickly respond to loan requests from small businesses. By reducing the origination costs, these processes make it more profitable to lend smaller amounts.

Rewards of Peer-to-Peer Lending

Online lenders are exploding in popularity, thanks to their customer-friendly practices and ability to give small businesses fast access to much-needed capital. Industry experts estimate that since 2007 online lenders have originated an estimated $10 billion worth of small business loans, with the majority of the lending taking place in the last few years.
Despite the buzz around online lenders, they still only account for less than 1 percent of total small business loan volume. In comparison, new small business loans originated by banks alone account for roughly $200 billion annually, according to the FDIC.
While traditional lenders still originate the lion’s share of small business loans, there are certainly times when working with online lenders may make sense for your business. For example, if your business needs cash right away or requires flexible payment terms, such as paying a percentage of your credit card receivables instead of a fixed monthly payment.
If you’ve just started a business, getting a loan from an online lender also may be an option to help you start establishing a credit history. Or, if your business has a less-than-stellar credit or financial situation, it could help you repair your rating to help you qualify for a loan from a traditional lender in the future.

Risks of Peer-to-Peer Lending

As with any decision related to your business, when seeking loans from online lenders, it is important to weigh the risks versus the rewards. Behind the slick user interface, excellent marketing tactics, and fast approval turnaround, there are some potential pitfalls that could negatively impact the bottom line for many small businesses.
It’s important to consider several factors when choosing an online or peer-to-peer lender to ensure you don’t get caught off-guard by unpleasant surprises, such as:
● Restrictive or shorter repayment periods. Some online lenders require payment in just six months, which is considerably shorter than the three year intermediate-term loans that banks offer. This would result in monthly payments higher than if you had a longer repayment period.
● Exorbitant interest rates. Many small businesses are used to comparing the cost of loans by using the annual percentage rate (APR), which is the periodic interest rate multiplied by the number of compounding periods in a year, and includes certain non-interest charges and fees. But doing the same when deciding whether to use online lenders becomes problematic because repayment periods are often less than a year, there may be terms that require larger payments in the first few months of the loan, or there are hidden fees not incorporated into the advertised interest rate.
Some online lenders may not even technically be offering loans per se. If you look closely at their contracts, their offers may be structured like a cash advance, which is similar to the tactics used by payday lenders to avoid having to comply with lending regulations. By accepting a “cash advance” instead of a loan, your rights could be greatly limited when compared to a traditional bank loan that offers protections through federal and state lending laws. Because of these variations, you often end up paying significantly more for a loan from an online lender.
A comparison of online lenders by Fit Small Business estimates that average APRs range from 40 percent to 80 percent. Once the various fees are factored in, borrowing from other online lenders could potentially result in estimated APRs as high as 300 percent. Banks and credit unions, on the other hand, typically offer an APR of 6 percent to 8 percent.
● Surprise fees. While banks often include their in the calculation of APR, online lenders can have a number of fees of which you may not initially be aware. You will want to check the fine print closely to understand the types of fees for which you’ll be responsible, including those for origination, daily loan guaranty, and prepayment.
● Lack of a personal relationship. Banks typically forge long-term, personal relationships with their account holders and understand the nuances of the small businesses and the local markets they serve. If you primarily use one bank for all of your accounts, this relationship can translate into lower fees and ancillary perks, such as higher rates on savings accounts or waived annual fees on accounts or credit cards.
These long-term, personal relationships can become more valuable as your business grows, because your bank can provide new financial products or structure financing differently to correspond with your company’s stage of growth. Many banks indicate they would prefer to loan to their existing clients, but cannot if these small business customers don’t meet their lending criteria.
Online lenders do not have the ability to develop these types of personal, face-to-face relationships with small businesses.
● Who is funding your loan? The source of funding for loans also can play a role. Banks rely on FDIC-insured deposits, which helps keep the cost of capital low. Online lenders have high-cost capital from institutional investors and other sources that are looking for high yields, and this capital is at considerable risk if Wall Street loses interest in funding this type of business model or decides to move their capital elsewhere.

New Standard for Borrowers

Online lenders have truly set a new standard for borrowers. They’re improving the user experience with simplified online loan applications and, in some cases, almost instantaneous lending decisions. They’re also expanding into a diverse range of loan options for general consumers, students, and small businesses.
Banks and credit unions are quickly learning from the competitive pressure and success of online lenders. Some of the most forward-thinking lenders are now adopting technologies that will mirror the online lending experience and offer the low interest rates that only banks and credit unions can provide.
These technologies enable loan officers to make faster decisions while reducing origination costs for even small dollar loans, which in turn will increase the number of small business loans banks and credit unions can make and meet the needs of businesses that are seeking smaller loans.

About the Author

Post by: Trevor Dryer
Trevor Dryer is the CEO and co-founder of Mirador Financial Inc., a small business lending platform for banks and credit unions. He has dedicated his career to creating financial technologies that create opportunities for both financial institutions and their small business customers. Prior to Mirador, Trevor launched new financial and payment products at Intuit for the company’s small business and banking divisions. Trevor earned a Bachelor of Arts degree from Harvard University and a Juris Doctor from Stanford Law School.

###

Some peer to peer lending match up platforms (for information purposes only, as neither the author nor GEI Consulting endorse or vouch for the quality, integrity or pricing of any of these services) are listed below for your investigation. You must investigate each of these platforms thoroughly before proceeding with the loan application process, and be certain you understand fully all of the terms offered to you. These loans can be very expensive in many cases, but they may well be cheaper than either the cost of undercapitalization or the cost of inviting a stranger in as an equity participant:

Lending Club

Prosper Marketplace

Funding Circle

Upstart

Kiva

Zopa

OnDeck

Labels, Tags, Keywords, Categories And Search Terms For This Article:

business, startup, peer to peer lending, P2P, crowdfunding, loans, capital sources, private loans, loans via internet, GEI Consulting, Douglas E. Castle, entrepreneur, alternative financing.

Good luck in your search for capital, and thank you, as always, for reading me.

Douglas Castle for Global Edge International Consulting Associates, Inc. and The Global Edge International Blog

Please Join Me On LinkedIn

Please Follow GEI Consulting On LinkedIn

Please Like GEI Consulting On Our Facebook Page

Please Follow GEI Consulting On Google Plus

***************

Please Follow GEI on LinkedIn...

Please Follow GEI on Twitter...

Pages

Monday, August 31, 2015

Launching Your Startup's Crowdfunding Campaign!

Educate yourself about crowdfunding and choose the right platform

Build pre-campaign momentum

Gather contacts and evaluate your network

Choose your funding goal

Entice people with rewards

Create a marketing plan and template everything

Launch time

Throw a kick off party

Related articles

Saturday, August 22, 2015

Increase Profitability With Zero-Based Budgeting

Friday, August 14, 2015

Insiders Are Selling Their Shares? What Should I do?

Monday, August 10, 2015

Peer To Peer Lending For Startups

Understanding the Risks and Rewards of Peer-to-Peer Lending

State of Small Business Lending

Rewards of Peer-to-Peer Lending

Risks of Peer-to-Peer Lending

New Standard for Borrowers

About the Author

Related articles