5 things to do before launching crowdfunding platform
In today’s fast moving world more and more projects are being funded by crowdfunding platforms, as an alternative to traditional funding in the banks or credit unions.
Noticing the problem, that many people face exactly the same problems contacting us, crowdsofts.com team prepared a list of things that the entrepreneur should get acquainted with or things to-do before launching your own crowdfunding platform.
The things that will be discussed in the following article include the following topics:
Overall business idea;
Licensing and regulation
What people are must to have;
Cash flow, EMI, KYC matters
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Eager to start your own crowdlending business? Let’s talk about your idea! Contact us for a personal offer on Crowdsofts that is customized to your needs.
Peer-to-peer software and outsourcing advantages
You’ve probably heard by now about crowdfunding – a financial process where investors lend money out to borrowers via an advanced crowdfunding portal. No borrowing from banks or relatives involved.
Traditionally, to start a business or to make a bigger purchase, people had two main options of how to borrow money. One was to go to their relatives, who may or may not be reasonable about lending conditions and repayment. The other option was to go to a financial institution, such as a bank or a lending company. Borrowing directly from relatives or other people may not be safe. They could always demand repayment at unreasonable time or rate. Meanwhile at a bank, the same loan securities that prevent you from taking out more than you can afford may stifle borrowing altogether, as there are too many obstacles to jump through.
This is where the process of crowdfunding really found its niche. More than that, crowdfunding software developers, such as Crowdsofts, began offering powerful tools to facilitate this process and renting them out as white label P2P lending software.
In broadest terms, peer to peer lending can be grouped into three categories: lending to consumers, lending to businesses and lending against property. Some P2P lending platforms are dedicated to just one of those types of peer to peer lending, while others offer all three. It’s important to note that the current vast majority of these businesses operate on a software solution that they haven’t built themselves. They outsourced it.
To outsource a crowdfunding platform is not necessarily a bad thing. In fact, it’s largely an efficient way to start a business without much investment. Think of it as starting a log cabin sales business without investing ludicrous sums into your own production and material sourcing lines. Instead of millions of Euros that would be required to jump-start this operation, all you need to provide is your design of choice. Then all your focus should go to marketing and sales of the service, not the development and scalability of your production line.
Instead of operating a lending business, Crowdsofts built a crowdfunding software, that is able to offer full, end-to-end intelligent automation of the entire P2P lending process. Whether it’s lending to people, businesses or against property, our software is able to handle any type of crowdfunding service. It’s flexible and adaptable to almost any business model. Right now, Crowdsofts is successfully being used as a white label real estate platform and a crowdfunding platform for heavy machinery. Any business venture that could benefit from crowdfunding technology, can benefit from Crowdsofts.
If you’re new to white label crowdfunding technology, you can learn all about how it works from this website. We also carry a lot of useful, built-in features that can all be expanded upon based on your business necessities. All you need to do to kick-start your crowdfunding business is to get in touch with Crowdsofts, pick the right operating options for you and integrate them into your own marketing site themes. Our software will do the rest for you.
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