Crowdfunding for SMEs

[NoobMi]

1) is it legal for SMEs to do crowd funding on its own, i.e. through own websites?
or must go through govt regulated channels, like MoolahSense, etc
2) what is the normal fees involved for posting crowdfundings on these channels

basically my fren is looking for capital to expand his business...
appreciate any advises.

 

[cakeycake]

I don't suppose you can. I've been using several crowdfunding sites and these contracts between you and other parties can be rather complicated and costly. With regulated sites, you outsourced these things to the platform.

Fees are usually at 4% of the pledged amount.

 

[numbers]

most smes would first try to loan from a bank. If cannot loan from bank.....then thats where they end up at crowdfunding

 

[alexchia01]

most smes would first try to loan from a bank. If cannot loan from bank.....then thats where they end up at crowdfunding

I agree, I don't trust companies that use crowdfunding. Companies that do this either business model is not sustainable, that's why banks don't want to lend them money, or end up a scam.

 

[lemanruss3]

True that most SMEs would try to take loan from banks because of lower interest rates. Given that the banks take longer time to process and market conditions are causing them to becoming more and more conservative, its good for SMEs to have crowdfunding as an option else they have to go to loan sharks. That's worse.

 

[HLbanana]

Crowdfunding talk by Nick Rademaker

Hi, was reading the thread and thought this event will be useful. It is basically about the alternatives of funding and if you guys think it'll be useful feel free to come. It is on eventbrite:
Crowdfunding: the alternative fundraising strategy for your business
by Spacemob

its free so if you guys have the time can go check it out!
ps:i can't link it up