BizSugar.com › Raising Capital › Are You Prepared for a Debt Based Crowdfunding Loan?

Inherently, crowdfunding campaigns come with a level of risk and responsibility. For rewards and donation crowdfunding, the responsibility falls on the project manager’s shoulders to deliver on promises. For equity crowdfunding, investors expect smart business decisions that foster growth and profitability.

For debt based crowdfunding loan applicants simply need to repay borrowed funds. In this final instance, the risk is defaulting and the responsibility is ensuring this doesn’t happen. So even if you have the means to secure a debt based crowdfunding loan, consider your risks and responsibilities in order to gauge how ready you are to commit to an investor.