Great to meet everyone at the ‘Meet the Chamber and Business Exhibition’ this week, a networking event organised by the Hampshire Chamber of Commerce, of which we are members.
More about our loan applications! We set up Go2 Business Loans with the specific aim of helping local businesses and have completed our first investment project. Go2 Business Loans, based in Southampton, has helped fellow South Coast firm FastGrowth Limited raise £10,000 through its crowdfunding site.
Private investors for small business loans
Crowdfunding has grown phenomenally fast in the UK. From a standing start in 2010, UK investments made through crowdfunding sites now stand at about £5.5 billion (Altfi.com) . This is a phenomenal statistic, and points to a great British success story. We are way ahead of the rest of Europe in this field. They, with a much larger economy and population, have invested only about £1billion.
Crowdfunding your business
Crowdfunding is the process where we “harness internet technologies to bring those with money and those who need it closer together and aggregate numerous small investments to meet large funding needs” (nesta.org.uk-November 2014).
I had a very interesting coffee the other day with an old friend of mine who has been in the finance sector for most of his working life, and, having retired, spends a lot of his time investing on sites like Go2 Business Loans.
When you put a loan request on go2businessloans.co.uk remember that you are selling the merits of your business, your plans for your business and your talents as a manager of that business to investors who may or may not know anything about you and your business.
These tips are very basic but it’s amazing how often business plans are presented half thought through, which just leaves the door open for doubt in the minds of investors and allows them to move on to the next, better prepared plan. You have to give this your best shot, or you could lose the opportunity to raise funds.
Crowd funding is growing and spreading into new territory all the time as the concept of savers lending their money to small businesses and private individuals over the internet really starts to grab the imagination of yield starved domestic savers and international funds, and borrowers of all shapes and sizes looking for a quicker, less bureaucratic way of borrowing money than is on offer from the institutions.
Go2 Business Loans has been established as a P2P lender serving the needs of business in the South. Go2’s philosophy is that businesses serving a local community are best funded by people who have a stake in that community and understand its requirements.
Go2 Business Loans is an old idea brought back to life through new technology. The idea is simple; “Local money for Local Business”, providing a service for owner managed businesses, and community projects to raise finance from their local communities.
We are kicking off with a site aimed at the business community in the South of England; businesses based in BH,SP,SO,PO,GU and RG postcodes. We are based in Southampton and have built the website and done all the legal documentation and agreements using local resources.
We always envisaged Go2 as a crowdfunding business, and have watched the rise, and huge success, of crowdfunding applications in the UK with a mix of delight and bemusement. When we first started on this project nearly two and a half years ago, crowdfunding looked good, was growing fast, but it was in its infancy, but there was a lot of scepticism around and people who should have known better were predicting disasters. Well the sceptics have been confounded. Crowd funding is now an accepted part of the scene and an obvious way to meet our objectives.
Local money for Local Business is the catchphrase of Go2 Business Loans which is launching in the South of England this month. Anecdotally we find that the phrase really hits a chord. People really do want to do business with local people and support their local business communities…we seem to have tuned into the zeitgeist.
This is more than a sentimental longing for a rose tinted past, although by necessity, in the past, before the rise of the banks as the main source of owner managed business finance, much of the cash raised by businesses would have come from local contacts. There has fairly recently been a bit of a political push towards empowering the regions (there was a white paper on this about 5 years ago, you may recall) which may have hit a nerve.