Saturday, August 8, 2015

Two Key Elements of a Crowdlending Campaign

The key to success is having a compelling presentation and getting the word out to as many people as possible.

Let’s start with the presentation. You need to provide a simple, well-organized explanation of your business. The things that are requested are things you already know – what is your business, how you would use the proceeds of the offering, simple financial information, the people behind your business, and the risks related to the business and the offering. You already know all of this. Your potential investors need to know it too, so they can make an educated choice on weather to invest, or not to invest in your loan. Securities laws require certain kind of information as well, since essentially what you are doing is issuing “mini securities” under the Texas intrastate crowdfunding exemption.  All this could get somewhat confusing, but a good crowdlending platform should provide you with organized and straightforward instructions.

The second step is to get as many people as possible to take a look at your project.  This would be a time consuming task if you had to make the presentation personally.  But, you don't.  All you need to do is to interest people in taking a look at your project on line.  Use personal contacts, email lists, daily customer contacts, social media, whatever means will get the simple message to as many people as possible.  “You know me and my business. I am raising money to expand.  I am conducting an offering at “Your URL”.

You can crowdfund your loan in Texas on Texas Lendoor.  Your company must be registered in Texas, and you can only raise money from Texas residents.