First, let’s look at the benefits of crowdfunding and banking together. Do you think there is an advantage between the two financial services?
First of all, there is one. You have to use it the right way.
In 2017, an acquaintance told me that he wanted to acquire a commercial building in Montreal where a school in a particular field had its premises.
It was for him the chance of a lifetime to acquire this school for sale with the building.
Crowdfunding and banking
After several thoughts, he decided to do a crowdfunding campaign and finance his project.
However, he had a considerable amount to fund in an unrealistic time frame.
So I’m like, ‘Why don’t you fund your equity and then build your case for the bank? In this way, the bank will have fewer risks to take with your project, and you will have the money on time!”
That’s what he did. He went to the bank even before receiving his capital from his campaign. The bank saw his campaign’s impact and gave him his loan to acquire the building and the school.
In particular, crowdfunding and banking are not competitors. On the contrary! They are complementary to each other.
For this reason, if you need money within a specific time frame and want to solidify your bank record, crowdfunding will be an effective way to demonstrate to the bank that you already have customers who buy from you and retain your business or future business.
In other words, crowdfunding and the bank can make a good team with your project.
Not sure if crowdfunding is for you? Download our preparatory guide.
Watch the full video.
Happy reading and listening!
Guylaine Beauchemin – Crowdfunding project manager
P.S. – Now I invite you to read the information on crowdfunding and taxation for companies.