BizSugar.com › Raising Capital › Crowdfunding: How to Leverage It

While crowdfunding is booming there’s a problem that comes with it. The seed capital amounts it enables you to raise tend to be small. The majority of crowdfunding transactions raise $25,000 or under for the borrower. This amount is not going to get you very far in most cases. However, there is a way to leverage the small amounts that crowdfunding can supply to raise additional capital. The way to do this is to treat the crowdfunding capital as the down-payment you can then use to secure a larger loan from a bank or specialty lender. Perhaps, you need $100,000 to acquire some key business asset which will enable you to create cashflow? The bank likes your proposal but there’s just one thing missing. You lack the down-payment.