In recent times you may have heard about the concept of crowdfunding – a way to gather funds from strangers essentially making them investors to your business project or proposal. Whether it is to start an entrepreneurial business or for a cause like making an animal shelter, we see people on online platforms trying to raise funds from like-minded individuals all across the world. The financial process where investors lend money to borrowers through an online portal is called crowdfunding. There are no banks, agents, or government-regulated financial institutions involved in this process, just borrowers and individuals who want to invest in that cause or opportunity, and yet it is the safest and most trouble-free way of making transactions.
Why is Crowdfunding?
In the conventional way of applying for loans for a business, a borrower would have to go through banks and lending companies. Although banks and money lenders are favourable to bigger enterprises, a majority of borrowers keep away from them due to their high rates of interest and short turnaround times; not to mention the thousands of terms and conditions and the constant follow-ups from the banking agents. This and other such “clauses” that banking institutions expect a person to follow keeps people from approaching them altogether and in the long run, giving up on their professional or entrepreneurial dream.
In this atmosphere of a lack of trust and understanding between institutions and borrowers, comes a unique P2P (peer to peer) crowdfunding platform, Crowdsofts.com. Not only have they placed themselves as the most convenient and cost effective way of crowdfunding but they also offers competitive interest rates for borrowers and give better returns to investors as compared to banks. All this from the convenience of one’s home. In short, peer-to-peer lending is a model of debt-based crowdfunding, which is facilitated by software platforms instead of institutions. These platforms match investors looking to grow their wealth via offering loans to individuals or companies looking to borrow funds.
“One thing is sure - every business faces constant attacks and every business that will not deploy some level of security will get hacked and pretty quickly.”
Your path to financial freedom
Tadas Budrikis, CEO of Crowdsofts.com tells us how his company has been supporting its customers successfully to raise funds for their businesses; whether it is starting up or expanding. Established in Lithuania in 2016, Crowdsofts.com is a White-Label crowdfunding software that develops flexible models for online funding for their clients. These models can be adapted and tweaked as per a customer’s funding requirements thanks to the tools that Crowdsofts.com has to offer.
Tadas explains that on average, companies that want to set up their own crowdfunding platform from scratch have to first start by spending 100,000-200,000 € to build a market-ready crowdfunding platform. Even then, that platform will run with basic functionalities and with partial animations. Also, setting up of these platforms all the way from the beginning can take up to a year or more delaying the time of the actual fund sourcing, and when the funds do finally get raised, the same platform that took so much time and money to develop becomes redundant.
Crowdsofts.com offers borrowers’ tools to create their own Crowdsofts backed crowdfunding platform. Fundraisers can use this for as long as they require; with a monthly subscription fee. This comes with many short terms and long terms advantages that borrowers have benefited from. Not only does it cost 10 times less than setting up a new platform all the way from the start but the turnaround time of deploying this is substantially lesser. Borrowers can now have an up and running, personalized sourcing platform in less than 2 months. With the amount of money saved, borrowers are free to allocate the funds they would have spent on developing a platform towards their sales, marketing, and business development activities.
Your trusted fin-tech partners
Crowdsofts.com provides support to its customers right from the pre-planning stage onwards. It all starts with getting a detailed understanding from the client of what their vision is for their business and what the scope of work of the software would be. Once this is clearly understood over a series of questions and interactions between the two parties, the milestones and goals are set and the customization begins. At this stage, Crowdsofts.com is adapted and tailored to that particular business’ need and soon thereafter, a personalized crowdfunding platform is ready to be launched. Furthermore, the team of IT specialists and analysts at Crowdsofts.com work with the latest tools used in the online funding industry, tools that they make available to every borrower.
The Crowdsofts.com platform itself complies with the European AML/KYC standards and has been developed in compliance with the general EU regulations. Not just that, the platform is designed around flexible API based third party integrations. This means that a Crowdsofts.com enabled platform can be adapted as per the KYC regulations of any country on the planet as per that country’s taxation laws, making it a global crowdfunding platform.
Tadas boasts about their software’s strong client-facing interface and inclusive back-office features. Crowdsofts.com is well known for its streamlining capabilities, effectively collating all investor and borrower registrations and performs fast identity checks and individual due diligence. Powerful analytic tools by Crowdsofts.com enable investors and borrowers to monitor and keep a check on their investment portfolio and track their overall crowdfunding performance. Clients can browse transactions, view investment history, manage payouts and even resell investments or chose the auto-invest option, thanks to the helpful tools developed and provided by Crowdsofts.com.
The start of a cutting-edge crowdfunding solution
Looking back, Tadas tells us how the company had initially started as a crowdfunding platform for itself. He personally understands the intense effort, cost, and man-hours that go into initiating and developing a crowdlending platform. That is the basis of what drives the team at Crowdsoft.com to bring easy access with minimal costs for their clients’ crowdfunding needs.
Oh! And the crowdlending software that the company initially started as is now one of their biggest success stories. Named Nordstreet.com, the platform finances various business loans by mortgaging existing real estate or other assets. What started off as an alternative way to get small and medium business loans, Nordstreet.com now has a total of 2164 investors with 235 projects already completed. They give an average return on investments of 12.46% and have paid a whopping 1,116,557 € back to their investors.
Still not buying into crowdfunding? Another such success story for team Crowdsofts is that of Heavyfinance.eu, another crowdfunding platform backed by Crowdsofts.com that allows investment into heavy machinery for the farming, forestry, and agriculture department and has given its investors an average of 11.24% return on their investments. Whether it is small businesses, the farming industry, or even individuals looking for start-up loans, Crowdsofts.com’s dedicated team of IT professionals or fin-tech specialists will always contrive a model that is best suited for that particular funding requirement.
A new and powerful tool for the future
Crowdfunding has emerged as the modern-day hero to medium and small businesses and entrepreneurs. Individuals who would once have to stand in lines and deal with the endless terms and conditions of financial institutions, and even then, not be guaranteed favourable loans can now take a sigh of relief. Making crowdfunding even more easy to access with the least amount of spend involved are Crowdsoft.com and their unique set of funding tools to create White-label crowdfunding platforms. Working with investors and borrowers throughout the world, Cloudsoft.com backed platforms have funded more than 121 projects and has more than 1500 investors on board from 8 different countries
With the rapid increase of borrowers and investors in the crowdfunding chain, there is a huge potential for growth in the next 3-5 years with commercial and donation-based platforms coming up at a rapid rate. In conclusion, Tadas says that “Crowdsofts.com is a powerful and effective tool for setting up new crowdfunding platforms at low costs and fast turnaround times”. So, what are you waiting for? Go turn your ambitious dreams into an achievable reality today.