SmallBusiness has released a new guide on how to raise finance through crowdfunding and peer-to-peer lending websites.

SmallBusiness has released a new guide on how to raise finance through crowdfunding and peer-to-peer lending websites.

The free digital guide, Raise money through crowdfunding, is part of the Small Business Finance iPad and smartphone app series. Sponsored by peer-to-peer lender Funding Circle, it is a comprehensive resource on the new and exciting world of social funding and how companies can access new online sources of finance.

Times are tough for small businesses seeking funding, and many entrepreneurs feel their only options to raise money are family and friends… and the much-maligned banks. The guide includes case studies and video clips of businesspeople who found an alternative and raised money online.

It also features tips on how to put together a successful application from the founders of crowdfunding sites themselves. Among the businesses profiled in the guide is Red Advertising, a job advertising network whose managing director Richard Clarke remarks, ‘Banks aren’t interested in lending to businesses, these websites are, it’s as simple as that.’

Tom Coomber, MD of knitting wool wholesaler Artesano raised £65,000 on Funding Circle. He comments, ‘The interest rate turned out to be around 2 per cent better than what my bank was offering.’

To hear more about what crowdfunding and peer-to-peer lending websites can offer small businesses, download the guide now.

You can also view and download the guide through our Small Business Finance App.

See also: Eight ways to raise up to £1 million

Related topics: Crowdfunding