Crowdinvesting: high return, high risk

Berlin – New companies are increasingly using crowdinvesting to finance their business ideas. Investors have high return opportunities, but also risks. Film projects, windmills or eco-friendly bamboo straws – the range of crowdinvesting projects is huge. In contrast to crowdfunding, this is more than a good idea. The money lenders can not only support young companies, they also hope for a high return.


Image: Pie chart in front of bar chart 

“In the meantime, the largest share is equity interests in the form of a so-called shareholder subordinated loan,” says Volker Schmidtke of the Verbraucherzentrale Berlin. “The investor gives money to a company, so grants him a loan and in return receives a share in the profits or value of the company.”

Websites such as bankless24, Bergfürst, Companisto or Seedmatch present companies that want to raise money for their business idea. “The exact return opportunities will be seen only from 2016, when the first projects have reached their minimum term,” says Ralf Beck, a professor at the University of Applied Sciences Dortmund. Nevertheless, he is convinced that this form of investment opportunity is attractive because you can participate in the growth of new companies at a very early stage. As a result, the return opportunities are high, but also the risk.

Whether an idea prevails is not guaranteed. “Especially newly founded companies hope to have a chance on the market with their products and to establish themselves, which can, but does not have to, work,” says Thomas Pfister from the Verbraucherzentrale NRW. “In case of insolvency of the company or failure of the project there is a risk of total loss.”

Not all startups establish themselves. “Experience has shown that about 50 percent of startups fail to survive the market in the long term,” says Beck. Most platforms, however, would pre-select the projects carefully. “More than 90 percent of startup applicants drop out at this point,” says Beck, who relies on discussions with platform operators.

This form of investment is suitable for people who have money left over. “Anyone who believes in an idea and is willing to take risks, who has already secured solid retirement provision, a liquidity reserve and important risks, such as liability, can think about whether he or she wants to venture such a risky investment,” says Pfister. Since an early exit is usually difficult, investors should set aside at least three net monthly salaries before they even invest money. “Then there are enough reserves to pay for unexpected expenses.”

Consumer advocate Schmidtke advises: “Before you decide on an investment, you have to check the whole thing on two levels: Is the platform serious and is the project promising?” The business plan and financing concept should be clear and convincing. For a better risk assessment, he recommends asking the vendor about the dialog function that exists on many platforms. That may be instructive.

Consumer advocate Pfister warns: “Even reviews in forums do not protect against a possible total loss, for example, if the project fails.” Therefore, he advises consumers to pay attention to whether on the platforms cost, participation and return opportunities are presented, and if there is information about what happens if the project fails, the company goes bankrupt or does not get the necessary start-up sum ,

The risks of the investment should be clearly stated. According to findings of the consumer center Berlin, there were shortcomings in the past. Therefore, the consumer advocates warned five platforms. They had not sufficiently pointed out the risk of total loss, or the information was only hidden on the page. In some cases, according to Schmidkte, it has not been pointed out that the company valuations given are notionally calculated values ​​that have nothing to do with balance sheet values. A platform had also specified maximum values ​​for the acquisition of funds, which then increased again and again.

In the meantime, the platforms bankless24, Bergfürst, Companisto, Crowdrange and Seedmatch have responded: “They have partly quite satisfactorily changed the pages, but only two of them have warranted by cease and desist that they will not go back to their old state,” says Schmidtke. Beck also recommends that interested investors invest in different platforms and projects and not just put everything on one project. “Scattering greatly reduces the likelihood of losing the entire stake,” explains Beck.


With microcredit in the self-employment


With microcredit in the self-employment

Berlin / Hamburg – Starting a business often fails because of the first hurdle – the credit. Microcredit could be the solution for entrepreneurs. Microcredits are used to lend small amounts of money; the range extends from a few hundred euros to a maximum of 25,000 euros.

News / Finance

Image: Smiling man Image: © Yuri Arcurs / Text: dpa / tmn

Anyone who wants to have access to capital in Germany as an entrepreneur or as an existing company has difficulty with small amounts. “The effort is simply too big for classic banks,” explains Max Herbst from the independent FMH financial advisory service in Frankfurt am Main. “The lending of a small sum has no relation to the management of the loan.”

For example, a graduate who wants to start his own start-up has bad cards with traditional banks. “The chance of getting a loan from a bank or savings bank without the customer being able to contribute or vouch for equity is around ten percent,” says Herbst. “The risk is too big for the banks.”

State-assured microcredits

The Federal Government has therefore created state-guaranteed microcredits. A microcredit is, as the name suggests, a micro-loan. Only a few hundred but only a maximum of 25,000 euros will be lent. With this the government wants to build up a nationwide supply with appropriate financings. The small loans are secured with a fund of 100 million euros – the micro-credit fund Germany. The donors are the European Social Fund and the Federal Ministry of Labor and Social Affairs.

Since its launch in 2010, over 6,000 loans have already been issued. Entrepreneurs or young companies borrow an average of 6000 euros for a duration of mostly 25 months. There is no lower credit limit. The term is up to three years. So-called microfinance institutions, such as management consultancy, take over the administration and consulting. Then they transfer the borrowers to the GLS bank. She is the real financier.

According to information from the Federal Ministry of Labor, lending works quickly and unbureaucratically. “From the loan application at the bank to the payout usually take five to ten days,” says a spokeswoman. “For normal business loans, the processing time at the banks is usually a multiple.” Promoted sectors are above all services, followed by gastronomy and retail. “These industries in particular have particularly difficult access to capital.”

8.9 percent annual percentage rate

The founders and entrepreneurs do not receive a lower interest than usual in the market. You currently have to factor in 8.9 percent APR. The microcredit of the federal government should make existing offers in the market no competition, the Ministry emphasizes: “It is aimed exclusively at small businesses and start-ups, which receive no loans from banks.”

However, Prof. Udo Reifner from the Institute for Financial Services (IFF) in Hamburg considers the program to be unsuitable for founders and small entrepreneurs. “The fund reduces the diligence of the credit intermediaries and the bank, because the risk is borne by the state,” says Reifner.

In addition, the banking sector will leave with the microfinance institutions active here. “The program is an invitation to dubious and inexperienced business consultants to act as a credit intermediary and to advertise with the state seal customers.The quality of the advice is not checked,” the financial expert to consider. Professional advice is only given to banks or savings banks that have a business start-up center and corresponding specialists, adds Reifner. The term of the microcredit secured by the EU and the federal government is also too short, with a maximum of three years.
“A company usually only reaches the break-even point after more than three years, ie the point at which it is able to survive.”

Consumer loans for young entrepreneurs

The way out of a credit crunch is for young entrepreneurs in the opinion of Reifner therefore the Dispo credit. “Banks are already lending small loans to a large extent, but these are not given as start-up loans, but as consumer credit, such as overdrafts, because there are much lower hurdles.” Because the cost of consumer loans are well below those for commercial loans. However, the customer has to do without an examination of the business idea and expert advice.

Young entrepreneurs without equity financial expert advises fall to turn with their corporate concept to the development banks of the individual states. “These institutions can examine the business model for start-ups and bear part of the risk, and they take over the guarantee to another bank that eventually lends the loan.” Also, the savings banks offer small commercial loans, where the interest is subsidized by the state and therefore cheap.

Entrepreneurs can also contact the Chambers of Commerce and Industry, Chambers of Crafts and various start-up initiatives. As a rule, the advisers also know the credit offer of the local institutes and the state funding opportunities. The advice of the chambers is usually free. If those who are willing to start up have a solid business concept in their hands, the chances of getting a loan are already significantly higher.

The microcredit and the alternatives

A total of 45 microfinance institutions (MFIs) look after start-up companies and companies for receiving the microcredit funded by the Federal Government, from the initial interview to repayment. Customers can contact the individual institutions via the website



Money Certainly A Hot Topic To Write About

Before employing any firm you must confirm all the details from debt relief system. They carry all the information of credit card debt settlement agencies which are authorized by the government. They are for safety majors which are essential for each debtor. He might get cheated by scams companies. It is better to do an adequate research on all the best debt agencies present in your neighborhood. Be careful in your selection; avoid taking any sort of danger. You are not in a position to bear more loses.

If you’ve been browsing the Summit NJ listings lately, you’ve probably been desirous about the various types of mortgage loans. News headlines are disparaging anything else you like and touting that one for the past few months and months. It can get confusing, visit your site an occasion homebuyer. Addressing a HUD-approved mortgage counselor will an individual sort out all the different options. Within the meantime, following are a few pointers to an old standard fixed-rate home loan.

With all the current news of our woeful economic news, I’ve made a concerted effort to stay fresh. Ipad and iPad 2 made a deliberate decision to not let the dire news drain me of my energy or spirit. I’ve accepted the reality that I want to make more calls and talk to more visitors get the outcome I aspire. I am dedicated to keeping myself fresh and sharp. I’ve developed an immunity to being able to protect my heart and passion, preserve my energy and efficiently deal I’m able to harsh realities around me. What will refresh you?

I attended the seminar and daily life took a 360-degree turn. Even though seminar only briefly introduces carrying out of eBook Businesses, Experienced made up my mind to start my first eBook Undertaking. I couldn’t spend on boot camps, expensive workshops with my current occasion. That didn’t stop me though, with little savings, I cooped myself inside the home learning supposed to be building an ebook business. I spent countless time, actually almost five months before I easy economic topics came up with my first eBook firm. Unknowingly, I had spent thousands on learning develop my ebook business. My savings were severely depleting to a place that I’d personally not have the opportunity to feed myself from now on. Fortunately, that point never came and I am hoping it won’t.

Fourth, have to have to get immediate feedback exactly how to well are usually doing. Have to be occupied with current activity without looking back wondering how good you did nor looking ahead wondering how well you will have done.

Look for about a job at this point not physically or emotionally challenging, because cleaning offices or waiting tables. An individual takes a work that requires you to deliver paperwork home or feel emotionally drained be sure to of the day, your site affect it is essential to study or thought processes in fashion.

Want more ideas? They’re everywhere! Start keeping an eye on what’s materializing in the world; ask family and friends for ideas products they will most likely buy, regarding price; hang out on forums and discussion boards; the look at news sites and see what persons are talking dealing with. Oh, and by the way, have paper and pen or a small tape recorder handy often. Soon you may have tons of ideas to your very own recession proof business on eBay.

How To Be An Effective Day Trader

Short term loans The first focus has to be on the healthy diet. It is the most important issue because what one consumes is what he is. If the individual eats lender payday loans healthy, it displays on his health and if the individual eats only junk, then your frequent doctors visit state the entire story. It might be just a little difficult for people to develop healthy eating habits, but even though it takes a while and a lot of personal control, someday it will be quite beneficial.

It is organic most of us are interested in day trading. However, only a few actually take those steps. We have all heard about just how much potential there is to make cash from day trading. Not knowing how credit check loan you can go about it holds all of us back. We don’t know where to begin. Day trading secrets help.

A new service known as Currency trading came into existence, here the people industry currency and make money from it. Earlier, domestic stock trading is regarded as to be the biggest earner. Yet this Forex trading has entered new boundaries. You can make a huge amount of money by trading forex on the internet that too within a short time.

The interesting issue about this strategy is whilst it’s almost the opposite associated with some conventional wisdom: you never go broke having a profit – it does highly adhere to the idea of cutting failures short and letting revenue run. The key is to perform more of what’s working, plus less of what is not, and that’s exactly what this kind of industry accomplishes.

Forex market is more transparent than the stock exchange or the commodity market. This permits investors to understand the driving car forces behind currency trading online. Any information that drives typically the economic policy of a nation is readily accessible for just about any investor and can be easily assessed. Besides, currency forex online trading can be performed via any electronic platform without floor brokers or core exchange. This facilitates the immediate execution of orders soon.

When it will it will catch up quickly, over the few weeks perhaps. Follow the following steps and you will be sitting onto it all the way up to next best. Gains as much as 30% are typical.

5)day trading is not international. All the significant funds usually are the end of day trading just because they know they can as high as they need in dollar value. Almost all day traders I know usually are trading less than $30, 500 and are doing it only to earn a living. They do not and cannot drag into court compounding in their favor.

I actually now accept that I can buy a winning forex trading system on the web for very little and that a highly regarded forex course will cost hardly any too. Indeed, there are an entire range of very affordable forex sources and training out there.

If you happen to become down under then day trading Sydney is a great option for you to improve your revenues. Also, assistance upon such a trade is available on the internet in the form of trading platforms that you can take help from plus earn yourselves a big revenue.

How To Use Personal Financing Software Right

Ask the family what they are doing. This is simply not so much so that you can do what exactly they are doing, but to provide you with ideas about alternatives that might be available that you simply haven’t heard of. Figuring out what other people are carrying out is a good way to locate what will work best for you personally.

HereEUR(TM)s the guiles loans list of economic resolution for 2012. You could pick and choose a few amongst these and apply to improvise your property personal finance software system.

Every small business has to understand where their money is going. You not to discover if the cash your investing will be helping you out as time passes. You need to try to find the most efficient sales software you could out there. You may have to invest a little bit of money for the most powerful accounting software, but it really might be a sound investment. Monitoring your money in a soberest loans small company is crucial in order to steer clear of bankruptcy. These structure software”s help quickly simplify your own simple accounting for small business duties, and provide all of the records and tools you need to effectively us your current economic data.

Due to appearing concept of simple accounting for small business, smaller businesses proprietors no longer need to feel overlooked. Records here are trained to avoid jargon when they speak with business people apart from getting incredibly courteous. Additionally, they also make themselves available on call at all times without needing to go through a new gatekeeper. When needed, they may be willing to arrive at typically the office/home of the business owner to get the job done.

Phase #1: Back up all of the specifics in your home personal finance software program. Typically, this is carried out by clicking on possibly “save as” or perhaps “expert as” inside the program you are employed to using. What this task really does is will give you a bring back level if anything should go wrong in the process.

An even easier solution to track inarticulation loans your budget is by means of online banking. Nearly all banks offer a program where you can download earlier account activity together with the plug it straight into a finance plan. It some cases, it altruistic loans even categorizes your current spending for you. Precisely how easy is that?

Maintain a check sign up, or log into your frequently, at the issuer’s Web site. Check your harmony by using software just like Microsoft Money or even Quicken. These financial deafly loans download software download all deals automatically.

Personally, I am aware no less than twenty “full proof” methods for making money online. Nevertheless which is autoput loans precisely where the condition lies: easily work with all twenty approaches, then I am just likely to have five per cent of the energy centered on one task or perhaps idea. And anywhere out there on the internet is a person focusing 100% of the energy on the same thought. Speculate who’s gonna come out at the top and become successful with that a particular method?

Easy And Quick Loans For A Crisis Situation

An immediate need could appear at any point of time. If you do not attend it in due time it could provide push to greater financial crisis. You’ll need income, rather than any false guarantees right at this point of time.

payday loans advance work a little differently than traditional loans that you get at your local bank. Only 14-30 days the phrases for these loans in many cases are limited +. Because, while the label implies, payday advances are accustomed to function as being an income could this is. Rather than waiting for the next pay period, nevertheless, it is possible to +advance+ the cash through these without headaches loans. There are several creditors that are not unwilling to extend the conditions of their wage advance loans to as much as 60 as well as 3 months. However, when they do so that always implies that the costs (curiosity) for that money can rise also.

Initiate to contact your creditors. As you owe something to them, dont look at them as though they are your opponents. They’ve compromises that sum of money you owed and it is your duty to pay them back. Because of how much money you’re to pay for on the income along with awareness of the thought you can spend general bitter thoughts deep within you’re expected. Workout a helpful and appropriate plan with paying debts to deal.

Applying for an payday advance loans las vegas mortgage could be the alternative for a variety of persons with the downward financial state of today’s. Once you attain your self in monetary problems of getting to cover your instalments or quick term fiscal commitments with no additional implies, this sort of economic note might be your saving grace. Usually, lending organizations simply call for that borrowers be 18 quite a while of age or older, be currently used in the place which they’ve held for six months or extra and possess an available checking account having a security exceeding what the mortgage sum is for.

The task in obtaining a cash advance payday loans is easy and quite quick. And never have to fax in more papers which are typically needed for loans, due to the net, it’s possible to apply for financing. All that consumers need to do is supply this is likely to be approved by the bank before granting the loan and the info questioned by the bank through the internet form. Since these loans are short-term, the premiums can vary and this usually depends upon the amount of mortgage that you want to use. Based on your income, lenders could lend up you to $1500.

You are able to access the immediate cash with any concern with the lenders running a creditcheck, as no such inspections are performed actually around the people with bad credit score recently payments, arrears and payment defaults.

Causes that you could need to make an application for a cash advance paydayloan are, you may have some costs that are unplanned to pay for, a car repair, buy anything you will need or just require some money to own some fun with. You can use your cash for whatever function you want. It is your decision.