10 Reasons Fundraising is Better Than Taking Out a Business Loan
SEE: 5 Sure Ways To Raise Money For Business
And the answer is YES you can. Here is where crowd funding comes into play and before you roll your eyes and decide to move onto your next random site. Hear my reasons for choosing fundraising over taking a loan, I am sure you won't think about the former ever again.
HIGH BANK RATES - No arguments there, you know where I am going with this. With the global meltdown and the overall economy in ruins, banks are way too risky to bargain a loan from and this is not just some fancy roadside observation that I’ve made. Ask someone with an economics background and with a good understanding of the economic scenario, they will tell you that it was a bunch of some because of whom the entire market collapsed.
ONGOING RELATIONSHIP - Let’s face it, you’ll have a much easier time raising funds from people that you have an ongoing relationship, with banks it’s a total hassle. Don't believe me? Ask your friends who have been into it.
YOU HAVE DONE IT UNOFFICIALLY MANY TIMES - Be it festivals or family occasions it’s not hard to recall a time, when you used to request your favorite uncle or aunt for money to set up a lemonade stand or to build a science project. Put your convincing skills to use now.
YOUR AIM YOUR STORY THE ONLY COLLATERAL - Your story and the aim of your travel is the only collateral that is needed for this purpose and trust me it is easier to appeal to the emotion than to the jumbled human intellect that has been conditioned by society for who to help and who not to.
TONS OF SITES TO GET IT FROM - There are tons of sites you can go and get it from e.g. fund my travel. All you have to do is - set your profile and agenda, get your story to the members and wait patiently, it’s that easy! But don't forget to provide your ifsc codes to them so that money flow doesn't get obstructed for a reason, so absurd. It would be so unfortunate if they don't have the right details. Additionally, this also makes your case genuine and strong.
THE CHAIN EFFECT - Fund raising is more like a community loan and that creates what I call a chain effect. Your family and friends are more likely to mention your plans to their friends and acquaintances over casual chit chats thus inviting more interested people unintentionally to fund your travel than those banks.
SOCIAL SUPPORT SOLIDIFIES YOUR FAITH IN YOUR CAUSE - Social support that echoes in terms of money raises your spirits and acts as a morale booster.
EASE OF NEGOTIATION - it is easier to negotiate with friends and individuals with respect to the repayment deadline (if there is one, mostly its free) than with loan sharks and bankers, though the latter may be much more polite than the former. Still none would want to live under the burden of a loan.
SHARE YOUR JOURNEY WITH YOUR SUPPORTERS - Your supporters are on a virtual journey with you when you interact with them about the places that you have visited. The onus is on you to ensure that they live every moment with you in this journey, keep them updated.
REINFORCE YOUR TRUST IN HUMANITY- Imagine yourself on a tour to your favorite destination - you travel, you roam, you meet new people, you see some majestic architecture, you’ve finally attain that age old dream of visiting the city and you are overwhelmed with emotion and feel like thanking the people who made it possible for you from the bottom of your heart. Nothing beats the feeling of having received help from selfless humans for your cause. It reinforces your trust in humanity which may sound cheesy, but it is not.
AUTHOR BiIO: Deepika Sharma
I combine my interest and love for writing to cover financial, banking and money related issues faced by the millennials today. Besides this, I also work for bankingDB.com, a complete online database that contains list of worldwide banking codes used for national and international banking transactions.