Crowdfunding is becoming an increasingly popular way to finance a wide variety of projects and causes. From businesses to charities, more and more people are turning to online platforms to solicit donations from a large number of people.
Kiva is one such platform, and it has helped thousands of people raise millions of dollars for their projects. It's simple to set up and you can reach a wide audience of potential donors. Plus, there are some great benefits to using Kiva that make it different from other platforms. One of the biggest benefits is that you can get 0% interest loans from lenders all over the world. That means more money goes towards your project instead of paying interest on a loan.
If you're looking for a way to fund your next project, you may want to consider using Kiva. Below are some tips on how to use the platform effectively to achieve your goals:
Tips on how to create an effective crowdfunded lending campaign on Kiva
1. Create a clear and concise explanation of your project. Potential lenders will want to know exactly what they're funding, so make sure to include all the details.
2. Set a realistic funding goal. Keep in mind how much money you really need to get your project off the ground - overshooting it will only deter potential lenders.
3. Use a great photo for your profile. Your photo is crucial. Lenders will notice it first, and many of them will use it to determine whether or not they want to find out more about you. Loan pages with poor-quality photos tend to raise less money more slowly.
4. Have an interesting personal story. Show who you are as a person and why you are enthusiastic about what you are doing. Talk about your passions, what drives you, and what has moulded you into the person you are now. The reasons you started your business, your future aspirations, and your entrepreneurial drive and tenacity should all be highlighted. Avoid being too stiff or impersonal. Try to add some pizzazz and describe what makes you and your company special and intriguing!
4. Create a deadline for your funding goal. This will help potential lenders see when they need to act in order to be a part of your project.
5. Build up your social media presence. Your social networks are your best ally when it comes to crowdfunding. You should also include all of your company's social media and website links in your profile. A website and/or numerous social media accounts demonstrate to lenders that you are a solid investment. They're also a fantastic way for lenders to get to know you and your company better.
How to crowdfund on Kiva
The application takes about 20 to 30 minutes to complete. You should have your basic financial information, business plan, and clarity on how much you need in order to complete the application easily. You can begin the online application process by clicking here.
Members of the Blaze Women's Network receive free application endorsements from Casey Richardson (given she is a Kiva Trustee). If you'd like for you application to be endorsed, register your interest at BlazeFinances.com.
Get Approved & Begin Fundraising
You'll start raising money as soon as your loan application is approved. This procedure consists of two steps: private fundraising and public fundraising.
Private Fundraising - This requires up to 15 days to complete. Only your close friends, family, and community members have access to your profile. Every loan serves as a reference for you and your company's character and as such, it is crucial to persuade your community to lend to you because of this. Anyone can lend a minimum of $25, but keep in mind that it's a loan, not a gift.
Public Fundraising - Your loan profile is made public on the Kiva website at this step. Now everyone has access to your loan, can read about your company, and can lend. It will be crucial to use your social network to spread the word about your company throughout this period, which could take up to 30 days.
You should also note that you would need a working PayPal account at this stage to receive funds.
Repay Your Loan
Kiva loan repayments begin one month after your loan gets disbursed into your bank account. Your monthly payment will be the sum that was decided upon when you were granted loan approval. The entire payment period can take up to 36 months depending on how much you are borrowing. Be sure to repay your Kiva loan in a timely manner in order to further build your business' credit and customer base.
Ready to get started with your Kiva application? Click the button below to begin your application today!