Five Financing Trends for 2011
Crowdfunding, microlending, credit unions, bootstrapping and the slow money movement are five financing trends that could have an impact on companies in 2011.
1. Crowdfunding is when a group of individuals help fund a project or business through donations. In return for funding, donors would receive services, goods or merely recognition, instead of equity or interest payments.
2. Microlending involves offering very small loans focused more often on benefitting aspiring entrepreneurs.
3. Credit unions are financial institutions that are among the most active in making smaller loans to entrepreneurs and have recently become busier. Credit unions have lower default rates and terms that are usually better than most banks and may be an option for business owners whose credit scores may not be accepted with other lenders.
4. Bootstrapping arises when entrepreneurs trim their costs and arrange for delayed payments to the point that they can self-fund their startup through individual savings and/or loans from friends and family. Trimming start-up costs may enable businesses to skip a loan altogether for start-up.
5. Securing business start-up money from a network of socially responsible companies trying to help their local community. The value to the investor is often derived from creating jobs and strengthening their community's business base.
To learn more about this article, visit Five Financing Trends for 2011.
For more information, please contact Wood, Atter & Wolf, P.A., in Jacksonville and Ponte Vedra Beach, Florida.
