Wednesday 17 October 2012

An Alternative To Banks

As banks tighten up on lending, particularly, it seems, to small business, an alternative source of funding is gaining popularity around the world.

Crowd funding can be used in a wide variety of activities but in business it refers to the granting of a small amount of equity to many investors. Specific acts of parliament have been enacted in places like the US just to control this growing form of funding. The concept has become so popular that businesses have been set up just to link borrowers and lenders in suitable projects.

Startup enterprises are the most likely vehicle for funding although that hasn't stopped established business's from launching new concepts via crowd funding.

So, lets translate this to QVM traders seeking funding for a new stall concept by offering equity to fellow traders who, after all, have a good understanding of what it takes to succeed at market trading - just a thought.