I have seen people using crowdfunding and borrowing from anywhere they can to start a business. Granted, they are dreamers, but some do have good ideas. The problem is that some don’t. It takes more than an idea to start a business. When I started my business I used my credit history to get consumer financing for merchants without having to borrow a nickel from banks or using crowdfunding. I have always been independent, and I did not want to owe a bunch of people a piece of my business. This is why I will never go public with my business too. I am independent and do not want partners or stockholders to answer to.
I have a credit score above 700, and I used that to get an unsecured loan from a financing company at a level of interest I am comfortable with. I know people who have even used credit cards to start their business. They borrowed from a bank, took out a second mortgage, maxed out their credit cards and poured cash into their business ideas. They were confident of success, but not very wise in raising capital. I kept it all under one roof. I can understand crowdfunding, but I was not about to use it for myself. I got more than a couple hundred thousand to start my business from consumer financing for merchants.
I have been repaying on an accelerated schedule to save on the interest. I project that the loan will be paid off by the end of my third year in business. That is quite an accomplishment in a short period of time. It was a dream to have my own business. My wife enjoys her career, and I enjoy this business. I am proud that our daughter has an interest in it too and is learning it from the ground up.