Will a Loan Really Help You? Here’s What Can.
By: Taqdees & Chiara
Published On: January 14, 2021
In today’s time, there are various financial gateways to acquire funds. But not all of them come easy. A loan is a traditional way of acquiring funds while crowdfunding is a relatively new concept. Let’s jump right into the comparison.
What is crowdfunding?
Crowdfunding is a process of raising funds online, on a crowdfunding platform. A cause, social or personal receives funds in small amounts in the form of donations through individuals. This cause is a fundraiser campaign on an online fundraiser platform, through which the funds are received. Individuals who believe in this cause donate money for the same.
Crowdfunding V/S Loan
Time Is Money
Acquiring a loan from a bank may take months. There is no guarantee whether the loan will be sanctioned. Apart from that, it also involves documentation which is a lengthy process. You may not even have that much time if you want a loan for a medical purpose or an emergency.
At ImpactGuru, you can start a fundraiser in 5 minutes. You start receiving funds immediately after your campaign is live. Also, the documentation process is hassle-free. Crowdfunding is an effective and relatively fast way of raising funds, especially for medical purposes or emergencies. ImpactGuru also offers a 0% fee for starting a fundraiser. Here is how it works
Location Doesn’t Matter
While taking a loan from a bank or any other financial institute that sanctions loans, you are restricted to applying in your city. You cant or wouldn’t go far beyond in the search of loans. What makes crowdfunding stand out from the method of acquiring loans is the accessibility. You can connect with donors all over the country for your cause. With the help of our campaigner app, you can access the dashboard on the go, which makes it easier and more efficient.
You can receive funds from anywhere in the country and that is the best feature of online crowdfunding.
What Do You Give In Return?
Usually, if you take a loan, you have to return the amount in installments with interest. which can be stressful.
When you raise funds through crowdfunding, all you have to give is gratitude. A simple thank you email or post suffices. Even post updates related to your fundraiser gives donors a sense of assurity of donating for the right cause.
It’s Your Story
While taking a loan is a rather mechanical process of acquiring funds wherein the bank remains unbothered of the reason for the loan, crowdfunding happens with empathy and understanding. When you start a fundraiser, you write about your cause. You are directly connecting with and persuading your donors in your words. The use of images and videos enhance the communication between the campaigner and donor. What you are receiving while crowdfunding is not just funds but support and love.Crowdfunding: An alternative to health insurance