Crowdfunding or P2P Lending – Which is Better for My Small Business?

Crowdfunding or P2P Lending – Which is Better for My Small Business? or P2P Lending - Which is Better for My Small Business?
Project funding. Financial opportunity,.

When you are looking for funding, the dilemma use face is crowdfunding or peer-to-peer lending? This is the question many business owners are asking now that these alternative forms of business finance have become mainstream on the back of ineffective lending from the banks. So, the ultimate question then is, which method of finance would work best for you and your business?

Crowdfunding and peer-to-peer lending are two innovative ways to get money into your business. They’ve been making headlines over the past few years and it’s fair to say that you’ll have had to have been hiding under a rock for you to not have heard of at least one of them!

A lot of people actually don’t realize that crowdfunding and peer-to-peer lending are two very different beasts; both share the same principle of raising finance from a number of people who pool together, but it’s likely that one will better suit your business needs, depending on what stage your business is at.

Crowdfunding or P2P Lending – Which is Better for My Small Business?

If you’ve got a great idea and need some help getting it off the ground, crowdfunding is for you.

Crowdfunding is a great option for startups and early stage businesses. You “pitch” your idea or business to potential investors, and if interested, they will contribute a sum to the proposed venture. Then you decide how you want to reward those lovely people who helped you make it happen.

Crowdfunding in its earliest form focusses on helping entrepreneurial creatives and inventors to get their creative ideas off the ground. The people who chipped in and made their dreams a reality then given something in return, like a unique perk, a gift, or first dibs on their product. This is what’s known as reward-based crowdfunding – one to consider if you’ve got a cool little gadget you want to develop. Like all new things, the concept of crowdfunding has evolved into different forms, with investment crowdfunding now starting to grow rapidly. In this model, instead of giving a reward to those who helped, you actually give them equity in your business.

Crowdfunding or P2P Lending – Which is Better for My Small Business?

What will my business need to be crowdfunded?

Crowdfunding platforms will typically want a business with a business plan and financial forecasts from you when you make your pitch, so it’s important you get these in order.


If you did want to go down the investment route and release equity in your business, there are quite a few legal issues that you’ll need to deal with and you’ll also need to make sure you keep your shareholders in the loop with what’s happening further down the line.

If you’ve got an established business then peer-to-peer lending is the one for you

Peer-to-peer lending is a fast and accessible way of getting a cash injection into your business. The essential difference between this and investment crowdfunding is that you do not give away any equity, but rather pay interest on the money you borrow, much like you would with a bank. Whether your loan is for a piece of kit for your factory, purchasing a property, buying stock or even working capital, peer-to-peer lending for businesses offers the most accessible and flexible way of getting finance for established businesses. Peer-to-peer loans are usually funded by a number of different people

Crowdfunding or P2P Lending – Which is Better for My Small Business?

What sort of credentials will my business need to have?

Peer-to-peer lending is suitable for all established business. As part of the application, you’ll have to provide your businesses financials and reasons for why your business needs a loan. This information should be pretty easy to source, so by way of preparation there isn’t that much extra you’ll need to do.

Which would work best for my business?

In a nutshell, if you have a great idea that’s yet to get off the ground, then go for crowdfunding. But, if your business is well established and you’re looking for a business loan, then you’d be better suited to one of the peer-to-peer lending platforms.

As discussed above, you have two options. Both are viable, but it’s important to evaluate the pros and cons of each model before you decide.

If you are a small business and looking for crowdfunding, in recent years sites like, which specializes in promotion of small businesses, make this easy by broadcasting and promoting to its large network of several million users across the most popular social networking sites for small businesses – including Twitter, LinkedIn, 40Billion, and even Facebook. Innovative services like promoted posts and promoted company listings were created for entrepreneurs and crowdfunders to tap into a growing, active network online without spending thousands on pay-per-click ads or traditional advertising.

Crowdfunding or P2P Lending – Which is Better for My Small Business?About

40Billion is the social network of entrepreneurs and crowdfunders – a social platform for connecting business owners and promoting the things they create. Use 40Billion to find professional contacts and projects, get affordable digital marketing and social media promotion, and show off your creations to the world. Awarded Best Small Business Marketing Platform by US Business News!.

Crowdfunding or P2P Lending – Which is Better for My Small Business?


Contact us to craft your business plan they start from  £445. ZAR8000.00 US$ 542.

Interested persons to contact Dr Michael John Freestone. B.Com, SAIPA, FCIS, FCIBM, MBA, DBA

SA’s 12 ‘most loved’ local businesses – Santam survey

SA’s 12 ‘most loved’ local businesses – Santam survey

Small and medium-sized local commercial businesses play a vital role in the South African economy and a new survey tried to establish exactly what makes consumers big fans of the local enterprises they love.

Commissioned by Santam, the research was done by World Wide Worx.

The results were compiled using a combination of digital analysis tools on social media as well as traditional research. The report looked into which business categories were being searched for most and then it was followed up with trend analysis.

Thereafter, a poll was conducted among 2 489 respondents to find out what made them love a local business – or not. The sample was nationally representative and aligned to the economically active population per province.

To see full article follow this link:

Our accounting services Riverstone Accounting Payroll & Statutory Servi ces start on 1st September 2019 in White River also serving Mbombela.

Should you wish to find out about our very reasonably priced services. Specials for small businesses under R 5 million per annum.

Don’t forget to get your free business reviews:

Please use the contact form below.

Dr Michael J Freestone. SAIPA FCIS, FCIBM, MBA DBA

Welcome to THE MJF GROUP

Welcome to THE MJF GROUP

We are a multidisciplinary administrative, Accounting, Strategy, Business Planning and Marketing site using the skills and experience of our Founder, dr Michael J freestone-B.Comm. FCIS, FCIBM, ABP, MBA – Marketing, and a Doctorate written at New York University System school obtained with a summa cum laude pass and a distinction in business Finance.

The site is under construction and will soon offer full of information and special offers to get your Business on the Growth path.


Try our free Business reviews, 11 of them, all entirely free.

We also offer a free Strategic and Business Plan Package, single-user, on the cloud, ENTIRELY FREE FOREVER. Includes Tutorials, Stratpad university access and other help included in the package as you go.

The first is a business review to assess if your company is ready for Growth.

I’ve heard it so many times. “Yes, we are ready” and as many times I’ve seen them fail.

So, I challenge you to take the assessment and see if you are!


A free BusinessReview to see if you are Growth Ready!


Follow the link, register and don’t forget your user name and password aa this access gives you more than 10 more business reviews including:

  1. Business Development Review
  2. Start-up action plan.
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  4. Business Review
  5. Effective Business Plan
  6. Focussed Business Diagnostic
  7. How good are Your management skills
  8. Investment ready
  9. Work-life motivation
  10. Capability and Alignment
  11. EO 9 Box Grid – used to assess employee output on a one and one basis.


SAA cannot generate cash flow currently – Tito Mboweni

Should you have any queries send me a contact form and I  will respond as soon as possible.


Dr Michael J  Freestone

Address: 44 Impala Road,

White River.


South Africa.

Contact : +2783 271 2440