You may have noticed that TFGcrowd updated its platform this week – investors and businesses alike can now check out the exciting new features that TFGcrowd Marketplace offers. Here we take a look at what it has to offer.
What is TFGcrowd Marketplace about?
Ever since the team at TFGcrowd set up its operations, they have thrived towards making crowdfunding as easy and transparent as possible for all the parties involved in the process. With the introduction of invoice financing onto the platform earlier this year, the team realized that the system needed to implement changes in order to bring an easy to understand structure and as much automation as possible for those applying for financing, to ensure that all users receive the highest quality service in the shortest possible time.
The introduction of the TFGcrowd Marketplace onto the platform is bringing it one step closer to achieving this goal. It will be the place where businesses looking for finance will meet investors looking for investment opportunities. Small and medium sized businesses will be able to apply to raise financing on TFGcrowd Marketplace either in the form of loans or as invoice financing. TFGcrowd will evaluate these companies, and based on their financial indicators, creditworthiness checks and the collateral they can grant, will set their limits and offer them access to the TFGcrowd platform, where they will be able raise the necessary financing from verified investors.
What are the benefits?
TFGcrowd Marketplace was established with the aim to make the application process for financing easier and more transparent for both sides. This will ensure faster turnaround times, as verification processes and credit checks can be automated, allowing the TFGcrowd team, in the meantime, to concentrate on company evaluation.
TFGcrowd understands the need to offer investors as diverse a range of investment possibilities as possible and automation of the financing application process will mean that they can check larger volumes of loan applicants, at the same time not compromising on the quality of the checks being carried out. The automation of these processes is especially valuable for invoice financing, as this type of financing is generally smaller and shorter in nature, but it still requires the same attention to detail on the verification and evaluation side.
Business loans vs Invoice Financing
Businesses on TFGcrowd Marketplace will be able to apply for financing in the form of either business loans or invoice financing. These two types of financing differ substantially in their nature, meaning that each business will be able to choose and apply for the type of financing that best suits their needs and possibilities.
While business loans may be a better choice for companies looking for longer-term financing, which have the ability to provide security for the loan, invoice financing will be more appropriate for those, which need a boost for their working capital in the short term and have reliable business partners, to whom they are selling goods or providing services on deferred payment terms. More information on invoice financing is available on our blog post here.
How do the businesses meet the investors on TFGcrowd Marketplace?
In the “old” days, business owners were limited to very few options, when raising financing for a new business venture or when trying to boost the growth of an existing business. If they were lucky enough, they may have had rich relatives, which we're willing to lend some funds, but mainly they were left at the mercy of large corporate banks and all the bureaucratic hurdles that this entails or running around, trying to reach any potential angel investors that may be willing to hear their pitch.
Luckily, the rise of technological advances meant that crowdfunding came about, allowing business owners the choice to pitch their business ideas directly to a pool of investors, without the need to satisfy the bureaucratic appetites of the bank clerks. This brought about many mutually beneficial relationships, as anyone could become an investor and earn returns rather than let their money sit idly in a deposit account, and business owners were able to approach much larger numbers of potential investors all in one place, making raising financing a much easier process.
While the crowdlending process has been fairly automated for the investors for quite some time already, the same cannot be said about the business owners. Fast forward to today and the process is becoming almost seamless for both sides. A simple application filled in online on the TFGcrowd Marketplace, an automated verification process, a credit check, and successful company evaluation and Voilà! a business can start raising finance from a verified pool of investors.
Why is TFGcrowd Marketplace a good choice for businesses?
As mentioned previously, it is the aim of TFGcrowd, to make the crowdfunding process as easy and transparent as possible for all the parties involved. The creation of TFGcrowd Marketplace means that the process has become more straightforward and structured for the businesses willing to raise finance through the platform.
TFGcrowd believes in keeping the cost structure transparent, with no hidden fees or costs involved in the process. As businesses need to calculate the cost of financing, this is an important aspect to keep in mind and consider.
Also, when deciding on the form of financing most suitable for their business model, businesses on the TFGcrowd Marketplace have the flexibility to choose between business loans and invoice financing. TFGcrowd understands that taking out a loan or raising finance through invoice financing is an important decision for a company to make, therefore client support service is always on hand to answer any questions that may arise in the process about each form of financing.
TFGcrowd is continuously evolving and trying to find new ways to improve the user experience of the platform every step of the way. The creation of TFGcrowd Marketplace is only the beginning stage of the improvements that are planned for the platform in the near future to further improve the crowdfunding journey for everyone involved, so stay tuned to be up to date with all the happenings!