Financing your business: the crowdfunding option

A good means of financing, crowdfunding is particularly appreciated by entrepreneurs for its accessibility and simplicity. As a result, it is experiencing a real boom. In the 2000s, more than 2 million people succeeded in setting up their business thanks to a crowdfunding platform.

Zoom on crowdfunding

The Anglicism term crowdfunding is a financing system that makes it possible to obtain funds from individuals or communities through specialized platforms that bring together project leaders and investors. Also known as « crowdfunding », it can be characterized under three models: grant, loan and investment. It is an efficient and trendy financing system for French entrepreneurs since its legalization to finance their business creation or takeover projects or product launches.  It is moreover a solution recommended by professionals to project leaders who still lack funds to create their EURL after having obtained all possible loans from banks or if they refuse to grant a loan.

The crowdfunding platforms

More concretely, in order to solicit funds in a crowdfunding platform, the project leader must create an account and then publish an announcement including his project and specifying the amount he wishes to collect. In this way, donors who find the project interesting participate in the financing either for the income that will be generated or in a philanthropic approach. Today, there are several hundred crowdfunding platforms on the web. Some are generalist like bank4pro are interested in all types of projects and can help you on how to use crowdfunding to start your business.

The advantages of crowdfunding

Crowdfunding brings several advantages for an entrepreneur or creator. It is a financing solution accessible to all types of projects and sectors, used as a complement to other financial schemes such as bank loans, honour loans, micro-credits, etc. Allowing to collect several thousands of euros simply and quickly, participatory financing is also a good alternative to finance a first test project before embarking on a more expensive development. The fundraising campaign must be accompanied by wide publicity on social networks and traditional media for it to be successful. Indeed, it is a powerful tool to make your EURL company and your projects known and to attract a large number of future customers even before the launch. It is therefore an asset in terms of marketing and advertising.

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