Loans for Food Entrepreneurs Through Kiva Zip
We haven't gone into too much detail about fundraising on this blog, but it's an important component of starting any business, especially one as labor and capital intensive as a food business.
As your business grows, you need to hire more staff, purchase equipment and build inventory to save money in the long run. But that's before you make or save any of that money, so it's a bit tricky financially.
Fundraising to Grow Your Business
That's where some form of fundraising comes in - you borrow money now to invest in your business and pay it back after you've realized the return on your investment.
Having tried to raise money a few times for food and non-food businesses, we realize the importance of understanding your fundraising options. There are always credit cards, friends and family, small business loans, crowdfunding programs like Kickstarter, and now there's another option.
0% Loans Through Kiva Zip
This week we had the opportunity to meet with the non profit Kiva Zip. They offer 0% interest loans up to $5,000 for food entrepreneurs around the country.
They've managed to eliminate credit scores, collateral, and a lot of the components of underwriting that eliminate the food businesses we see on ReciPal from bank loans. Instead, they focus on the character and reputation of the entrepreneur through their network of Trustees.
Kiva Zip loans can be used for any business purpose, whether it’s investing in new equipment, funding a major project, or hiring staff. This clearly fits the profile of some of our users at ReciPal.
Loans are crowd funded on the Kiva Zip website by people around the world who invest as little as $5 each. These lenders are not only investing in your company, but can also be potential customers, brand ambassadors, and advisors that you can communicate with directly.
If you're interested, you can learn more about their program.
Any other fundraising options you've seen for food businesses? Let us know and we'll share them with our community.