Even though SBA loans are on the increase, many San Diego entrepreneurs remain ineligible for bank loans and government-guaranteed programs. According to one survey, 50% of small businesses didn’t receive any financing they applied for last year. If you are having difficulty obtaining a San Diego business loan, you may want to consider your crowdsourcing options for financing your San Diego business venture.
With Crowdsourcing platforms like Kicktsarter.com and Indiegogo.com, you solicit contributions from online communities, providing you with more financial independence than a traditional San Diego bank loan. In return for financial help, you are expected provide rewards to lenders, which might include copies of the company’s product, merchandise and mementos.
Kickstarter is strictly for creative projects and has seen more than $1.86 billion pledged since 2009. Indiegogo, which is open for all campaign types, has cumulative U.S. funding of more than $500 million. According to CNBC, “Kickstarter and Indiegogo both have all-or-nothing campaigns: a model that motivates backers and decreases risk for creators. However, Indiegogo offers a flexible plan that allows creators to keep all funds regardless of success. Both platforms charge campaigns 5 percent of the total funds raised.”
To learn more about crowdsourcing your new San Diego small business, please check out the rest of the CNBC article at: Alternative Small Business Loans.
Also, don’t forget about the fast (no credit check) San Diego business loans provided by Diamond Estate Jewelry Buyers, which can be immediately obtained by using luxury assets such as diamond jewelry or a Rolex watch as collateral.