Four Keys to Crowdfunding Financing

Currently, entrepreneurs and SMEs are playing an increasing role in the economy. According to figures from the Undersecretariat of the Economy, about 98% of formal enterprises in Chile are SMEs, which means that about 880,000 micro, small and medium enterprises generate more than five million dollars. jobs in the country.

However, despite these figures, 99% of this sector faces a recurring problem for the development of their activities: the lack of funding. Faced with this reality, various alternatives to the traditional banking sector have emerged, one of the most important of which is crowdfunding. In simple terms, this is a collective financing option for a specific company or project, which can count on the funds needed to grow or continue to grow.

In Chile and Latin America, there are several platforms for collaborative financing, the largest being Cumplo, with more than 200 billion funded since its creation in 2012.

With this experience, Gonzalo Kirberg, CEO Cumplo shares four keys for SMEs to be an attractive investment option and can access this financing system.

1.- Have a clear plan. This is always generating more confidence for people who lend money to SMEs through crowdfunding, knowing what these funds will be for. According to Kirberg, "having a short, medium and long-term plan, with clear and concrete goals, allows SMEs to have a guide on where to go and how they can develop." the investor that the company has potential and prospects for the future, making it a better investment option. "

2.- Keep records flawless. Having good payment behavior is more attractive to investors as it represents less risk in the future. These tend to look for companies that do not have outstanding credits on the platform.

3-. Having a digital presence Having a website that clearly reveals the company is a very good idea to allow investors to better know the type of project they are allocating their resources to and trust the people they will invest.

4.- Have a backup. Having a backup is always a good starting point to apply for funding. So, if you want to apply for a loan with a backup invoice, it is advisable to submit known and known invoices, so as to represent a lower risk for the investor.

According to Kirberg, crowdfunding is an excellent financing alternative that reduces costs by promoting more equitable rates. "Our figures indicate that those who apply for capital at Cumplo manage to reduce the total cost of credit by 30 to 19%." This significant drop allows companies to have liquidity, continue to work, strengthen and continue to grow, "he explains.