A Look at Fundraising Platforms for Small Businesses

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As the coronavirus outbreak continues to affect business, many booksellers are looking into different fundraising platforms for financial assistance. Fundraising platforms, also called crowdfunding platforms, give small business owners the opportunity to raise money via the Internet.

Before launching a crowdfunding campaign, booksellers should decide whether or not it’s right for them. The Balance Small Business published an article on the pros and cons of crowdfunding. Booksellers should also consider a variety of platforms before choosing the one that best suits their needs.

LendGenius has compiled a list of some of the best fundraising platforms for small businesses, including ones that specialize in debt fundraising and equity fundraising, in addition to regular fundraising. Debt fundraising, the website stated, is “also known as peer-to-peer lending” and turns investors’ donations into a loan. Equity fundraising requires businesses to “give away a portion of [their] ownership in the final product.”

According to LendGenius, users should also be aware of costs and fees associated with running a campaign; built-in tools the service offers for promotion (such as customization); reports and analytics; and customer support.

LendGenius listed the following as some of the best fundraising websites for small businesses:

  • Fundable, a platform that guides users through the capital raise process for a monthly fee.
  • Patreon, a platform for artists and creators that allows patrons to fund campaigns on a monthly or per-project basis.
  • Plum Alley, a platform that focuses exclusively on female entrepreneurs.
  • GoFundMe, a platform recommended for projects with specific, quantifiable goals.

Additionally, booksellers can look into services such as Satisfactory Printing, one of ABA’s business affinity partners, which gives businesses the opportunity to sell custom T-shirts, tote bags, hats, enamel pins, and more directly to customers as a fundraiser. More information can be found about Satisfactory Printing here.