Entrepreneurs have 1 more reason to take the step that launches them into the next phase of their business. We’ve all heard of crowdfunding. Well, here’s a startup that aims at “collaborative funding” but largely involving only friends & family….& of course, this very startup.
The idea at work here is very simple – you work in tandem with your network & that of Able, & could perhaps end up with 3 times more funds as an entrepreneur (or so is the claim). According to the Austin, Texas, US-based company, you raise 25% of the loan amount from family & friends, & they will loan you the rest at 75%, at a “low” interest rate of 8%.
If you are a small business owner, successful at that, you know it’s time to grow your business. But you’ll need cash to make it happen… & the support to succeed once you make your move.
Here’s what you can do:
- You could approach a traditional bank, but they may not understand your business
- You could look to an alternative lender Online, but their rates may be hard to swallow
- You could approach investors…but you’d have to give up equity in the business, which could mean losing control over your vision
- You could approach your friends & family, but it might get awkward & messy figuring out how much money to ask for, & how to pay them back
…or you could approach Able which claims to fund small business loans of US $25,000 to $500,000, with the “cooperation” of family & friends for 1-5 year terms. Co founders Evan Baehr & Will Davis have pledged to service small business owners who are the cornerstone of the American economy. In a blog post, they state:These companies generate billions in revenues and employ 49% of our workforce, yet the majority of them cannot find reliable and affordable sources of credit.
Loan-giving by non-traditional sources, is not a new idea by any means though, & Able is rivaling CANCapital, OnDeck, Zidisha, to name a few. But Able also manages the loan & repayment schedule on the business owner’s behalf, thus freeing up the entrepreneur to focus only on his business.
Founded in mid-2014, Able has already funded many small businesses across the USA, like Flat Track Coffee, Kammock, & BranchBasics. The startup also offers borrowers entry into the Able100, an elite group of small business owners who can access the resources of collaborative funding. Within this club, small business owners are offered plenty of support and advice. Accountability & transparency is key in their dealings with borrowers, claims this startup.
– This post is merely a startup profile based on publicly available information & not a review. –
Image Credit: Able