Shawn Hessinger

Shawn Hessinger Shawn Hessinger is the Executive Editor for Small Business Trends. A professional journalist with more than a decade of experience in the traditional newspaper business, he has another 10 years of experience in digital media for trade publications and news sites. Shawn has served as a beat reporter, columnist, editorial writer, bureau chief and eventually managing editor with responsibility for nine weekly newspapers, the Berks Mont Newspapers. He is also a member of the Society of Professional Journalists.

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  1. Well there is no doubt to the fact that peer to peer lending or crowd funding are definitely better ways to start a business in a sound manner. But a small business can easily get California payday loans to kick off their plans.

  2. Interesting, thanks for sharing these new ways and creative of getting funds on the non-traditional way. Peer to peer and crowdfunding had really picked up lately especially with micro-financing. According to Kickstarter for example in 2014, they reported that 3.3 million people from nearly every country in the world pledged almost half a billion dollar! And it is only for one platform. These numbers are really a huge lost opportunities for banks.
    For the sake of comparison; “crowdfunding” with banks and other financial institutions: there are usually no interests involved, as fund seekers usually accept a donation with no guaranteed return for the “donor”. Crowdfunding is a very low risk as mainly all donors donate very small amount of money and they are not looking for return (similar to a charity) and just wanted to support or help for the good cause. Also, crowdfunding platform has a low processing time, it depends on the amount needed, usually would take about one month or less. Fund seekers get funding from many sources (crowd) and not from a single source. It is not a complex process rather a straightforward one. I would call it a friendly service (less interaction, fund seeker play a short video of the project idea, and donator pay in different dominations if he or she liked the project, quick and easy).
    Not just using crowdfunding to fund a business, we see now crowdfunding to fund for legal battles! There are more people now welling to spare 1$ or little more just to support someone with no intention for a return.
    The Internet made it easy and clear process for fund seeker to connect with donators, this will make traditional banks look again at their way of attracting fund seekers. We will see more and more crowdfunding in different types, funding colleges fees, endowments…etc.
    I am sure financial institutions and banks will come up with away to be part of this crowdfunding scheme to utilize the benefit of it and gain from it.
    For the near future, I see that “crowdfunders” will seek an equity stake (small) for their support of a project from the start (risk takers).

  3. A very substantial write up. Great to learn about all the finance opportunities available today for startups and entrepreneurs to take advantage… far, far from the banking institution. However if you already have an established business and seeking finance for growth and expansion, your local bank will be the best people to talk to. Downside is that most banks go for secured loan against a collateral of equal or greater value than the amount you are seeking. Meaning you may have to tire down your capital or valuable property to secure the loan. The good news is that there are other sources to raise collateral for the loan without having to tire down properties or capital which could otherwise be used to order more inventories, etc. This collateral is backed up by ‘Cash’ blocked funds or inform of bank instrument such as SBLC/LC etc from top providers. Trade Finance Capital is one of your companies you can seek advice in term of viable finance solution and get you the loan you seek in no time.

  4. These are ok if you are a small business and have time to wait to reach the full financial goal. Venture capitalists/ private investors are good for those who need funding a lot quicker. If you have a company that needs funding for a large projects, it can be hard to find as the new “in thing” is fintech. Some companies like Prestige Intermediaries can find suitable funding for your business as they have a number of lenders on their books who can structure complex financial models. Not only that but they can guide you to the right kind of lender who has a certain taste for your industry. They don’t do just start up businesses but those looking to grow and expand.

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