If you are a New York City entrepreneur, startup or business owner who cannot raise money from traditional sources like banks and investors because you have a poor credit score, a short business operating history, or you don’t have a network of investors in your back pocket, what do you do to raise money for your business in NYC?
One of the popular ways that has emerged over the last 10 years for NYC entrepreneurs, startups and businesses owners to raise money for their businesses is crowdfunding, but more specifically the crowdfunding platform, Kiva.
What is Kiva?
Kiva is a debt crowdfunding platform that provides interest free loans up to $10,000 for entrepreneurs, startups and business owners around the world. You heard me right, interest FREE.
Like any crowdfunding platform, business owners have to market and raise their funding goals. On kiva, business owners raise/borrow money from their audience (i.e. family, friends, colleagues, associates) and the global Kiva community of lenders (over 1.5M) that they then pay back over 6-36 months with 0% interest. Yes - you have to pay the loan back.
For example, if you needed $5,000 to help you market your business (i.e. website built out, Facebook ads, social media campaign), you could raise $25 from 200 people, $50 from 100 people, $100 from 50 people or a combination of different ways to reach your funding goal and carry out your marketing plan. You would then pay the $5,000 back over 6-36 months.
Kiva’s interest free loans also have no loan fees and they do not require a minimum credit score, collateral, or a minimum time for business operations to qualify for a loan.
Kiva’s love for NYC
With over 200,000 small businesses in NYC, our city is one of Kiva’s largest markets and they are doing everything they can to make sure that loans get in the hands of NYC entrepreneurs and business owners that need it the most.
For example, Kiva has developed several partnerships with organizations like the MetLife Foundation, Deutsche Bank, and the Moody’s foundation who gives Kiva money to be used to match dollar-for-dollar any money that NYC entrepreneurs, startups and business owners raise on Kiva. This means that if you are a NYC entrepreneur and you raise $2,000 from friends and family on Kiva, one of Kiva’s partners will match that $2,000 you raised, bringing your total interest free loan amount to $4,000.
Kiva has also developed a partnership with the City of New York to support women entrepreneurs in NYC. Through the WE Fund Crowd program, NYC women entrepreneurs can apply for a loan on Kiva going up to $10,000 and the City of New York will lend them the first 10% of their funding goal, up to $1,000.
This is a big deal, I know.
So, how do you get started on Kiva? Check out our 10 steps for getting started on Kiva here.
Ready to start raising money for your business on Kiva?
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