Since the financial crisis, banks have tightened their standards and have made it difficult for small businesses to secure the capital they need to expand and grow their businesses. From a banks perspective small business loans simply do not generate the revenue potential that loans to large businesses do.
Banks see lending to small businesses as risky, assessing creditworthiness is difficult due to a lack of information about small businesses, transaction and underwriting costs are simply not profitable enough, among other factors.
So what’s the solution?
Crowd funding harnesses the power of the community whereby individual investors can contribute a specific amount towards the end goals of a business. For example, Bill’s Organic Farm’s needs $75,000 towards the purchase of equipment and to build a new shed.
Bill can raise this amount and offer investors a return on their investment (for example 12%). Investors would then view the relevant information regarding Bill’s company and then contribute an amount they deem appropriate.
This is what REAMERGE aims to do.
Our focus is on providing a micro lending platform for cash flowing businesses secured by their real estate. As an investor, the mantra is to always diversify especially in the volatile times we live in.
So why not invest in REAMERGE? You can safely invest small sums in a diverse portfolio of businesses that fit your risk appetite.
The team at REAMERGE has 20+ years of developing and growing various small businesses from retail chains to traditional brick and mortar storefronts. Our mission is to utilize our expertise in connecting healthy, profitable businesses with investors in an effort to enable small business owners to propel their businesses to new levels.
By investing with local small businesses, investors will have a tremendous impact in growing the local economy which will help to create jobs, fuel further growth and development, and allow investors to share in the financial successes of small businesses.
Please see the following infographic for a short whirlwind tour of variations of crowdfunding. Credit: http://gogetfunding.com/