Pro Match Business

Some Great Business Ideas

Pro Match Business

Ways On Racking Up On Investments

Posted on March 22nd, 2016 by Geraldino Bruno

It might be a hard job for an individual to seek an investment if that individual has a brilliant idea that is worth a million dollars or so. It would definitely be easier for the person to sell it to a company but everyone wants to own their hard work and brilliant thinking. Hence, there are different ways of securing loans and other ways of getting financial backing. There is no longer the need to approach a bank or a professional financial servicer to get an investment. The easiest avenue is online and here are some methods of getting online investments.

Rewards based investment

This method of Singapore crowdfunding is used for many purposes such as conducting scientific research, promotion of motion pictures, development of free software and development of inventions in general. There are two subtypes of this method as well. One being “Keep It All” which is where the firm sets an initial goal and they keep the amount that is raised by way of funds despite not having met the goal. The other type is “All or Nothing” where the firm will set an initial goal and they will not keep any funds unless their set goal is met. In this method, the funds do not rely on the location which is beneficial. The distance is restricted to 3000 miles between both parties which includes royalty sharing. The more successful method has proven to be the All or Nothing method which had more investment figures as well as more investors. More investors are keen to cash in as they will get their money back if the goal is not met.

Equity based investments

This type of crowdfunding involves the group efforts of many individuals who strive to work together to support the efforts of individuals and organizations that direct financial assistance in the form of equity. There is legislation regarding these transactions in most of the countries. It usually mandates the inventor to create the invention as well as to formulate and register a company thereby creating equity.

Debt based investments

This is also known as “Peer to Peer”, “marketplace lending” or “crowdlending”. In this system, the person who wishes to borrow would make an online application which could be for free or for a small sum of money and his creditworthiness will be assessed through an automated system. The person who is investing would buy a security in a fund from which the loans are made out to registered borrowers. The investor gains a return through the interest rates set out on the loans. There are certain systems which are not automated and in such cases the operators of the system would take a fee in the loan servicing process.

Comments are closed.


Copyright © 2019 , Pro Match Business , All Rights Reserved.