Get Financed Over the Internet-Online Fundraisers

For a new firm, it is very important not to increase external liabilities in its initial operating period. This is because when you raise funds from sources such as banks, shares and debentures, a certain sum is payable at the due date, known as ‘interest’. This interest can limit the cash reserves of the company; hence, its development.

So, what shall the company do? Very simple, raise funds through the online fundraising platform, where, it is both easy to raise funds and no liabilities are accounted.

Let us have some know-how about such platforms.

How does online fundraising platform serve?

With such a platform, the company invites potential customers to invest in the company or in a specific product. Unlike offline means, the company need not pay any interest or reward to the investors. However, if the company prefers, it can offer any such monetary reward to them.

These customers are from all over the world. This means you will be able to make future customer relationships across the globe in early stages of your business. Moreover, the investment scale will increase gradually as your project gets more attention.

The benefits of online fundraising

Following listed are some benefits of raising funds online:

• International Scale: As discussed earlier, people at such platforms are from over the world. Without any limitations, any person from any part of the world can invest in your bidding. The money will be in international currency, so you will be benefitted of the fluctuations in international money exchange.
• No interest or monetary payment: Although there are some websites, which ensure rewards to investors, most of the websites allow for interest-free bid posting. So, whenever your company’s bid is over, you will not have to pay any surplus to the investors you got using the online fundraising platform.
• A hub for joint ventures: As there are many start-up and large companies actively attracting users through such platform, a company can use the same to create a joint venture that will benefit both. A joint venture is nothing but combining the manpower and interest of two or more companies, either one enjoying greater profits.
• Lesser Advertising Costs: If your idea or company’s initiative is feasible for the masses, your company can get a kick-start. By word of mouth, the users will share your bid to relatives and they will further communicate this to others; creating a very large chain.

Is any payment necessary?

No, there is no payment to be paid by the company to the online fundraising platform. However, one may have to pay for additional services such as bid promotion, active advertisement, and audience targeting.

Please note that this may not be applicable to every website. So, please confirm and read the terms and conditions supplied on the website to avoid any charges.

If there, the payment will have to be made through online or offline fund transfer means such as PayPal, Debit Card, Credit Card, Bank Transfer, and NEFT. One can also create and use Virtual Debit Cards for protecting online privacy.