Tech Startups Are Changing the Face of Financing
Some immense changes might be coming to the financing industry very soon, and it is all thanks to tech startups. A number of new businesses are crowding in on a territory that was once solely owned by banks and other financial lenders. However, individuals and businesses are learning that going to the bank to get a loan may no longer be the best way to acquire funding. If you own a business, it is important to be partially familiar with what is going on in the tech startup world so that you know where money can potentially come from.
Perhaps the most well-known financing startup is Kickstarter. Similar platforms have popped up since Kickstarter’s launch, but this is essentially a website that allows people to post information related to the project they want funded, and then hundreds or even thousands of individuals can donate money. These crowdfunding sites are really changing the face of the game because businesses no longer need to go to a bank to get a loan they would eventually need to pay off with interest. By offering fun rewards, businesses can get the money they need to really get their feet off the ground.
Another tech startup specialty that has start gaining prominence is financing for student loans. University students all over the country need loans in order to attend top-tier universities. There is currently over a trillion dollars of student loan debt in the United States, and that number is only projected to increase in the years to come. Therefore, startups have started coming up to make it easier for students to get the money they need to go to school without worrying as much about paying it all back. These startups typically utilize loopholes in student loan law.
Finally, startups have come up to help with real estate. This is another venture that requires a lot of money upfront and the entity taking out the loan may spend years trying to pay it all back. Generally, these startups have the connections to get good deals on real estate upfront. You may need to pay investors a portion of the income you are bringing in, but signs are pointing to the fact that these startups can really make a different in the type of properties future business owners can purchase.
Many businesses in the tech startup game are still finding their footing. It may take some time to see if any of them stick around, but it is an exciting time.
