Recently, all of us have been not just following how things evolve around Coronavirus (or COVID-19), but we've all been hardly affected by that as well. While numbers of infected keep increasing, we all hope measures taken and restrictions imposed by our governments will limit the outbreak of the virus and soon we'll all be able to live normal lives again. What we all know by now, the economy and businesses with it will be affected hardly. Many already are closing doors, cutting on employment, taking measures to live through the coming crisis. And many will not be able to withstand this time.
Anyway, let's move forward to what this page is about. This is:
SUPPORT FOR BUSINESSES
AFFECTED FINANCIALLY BY CORONAVIRUS
It's good to see how Swedbank announced support (and we believe other banks will follow the same incentive) for individuals and businesses offering credit vacation for up to 6 or 12 months respectively. This is a huge support for those who were conscientious payers up to date but now may find themselves in an unpleasant situation with a large cut on cash flow and somewhat hopeless view to the future. Providing help for these types of businesses will be something Wisefund will aim to as well with this incentive.
Building bridges
Wisefund understands that in the situation described above banks will still require regular interest payments to be made, and if a business is totally out of current cash flow, but has a great potential to continue working with profit once restrictions are removed, we need to support them. And not just locally, but throughout the continent. (sidenote: Wisefund is operating exclusively in the European zone, and will continue so in foreseeable future, so we're not accepting support request applications outside Europe. There certainly will be local supporting actions, and we're not the only ones taking this incentive.)
The crowdfunding industry has been rapidly growing during the last years and changing the way companies fund their activities by bypassing financial giants and their strict rules and creating direct connections between individual lenders and promising businesses. Recent events have initiated harsh times for various SMEs depending on daily revenue and without options to get quick funding from banks. This is once again a time where crowdfunding - a place where each of you make a difference and benefit from that - will be a major driving force and support for businesses around you. Businesses that create value and support the economy and the growth of our wealth and well being.
There are cities and governments who have announced support for small and medium-sized businesses to issue zero-interest loans up to 100 thousand euros, or cover payroll costs for several months for small businesses. We're truly happy to see these incentives coming up and that the support will be there. But not everybody will be in the city or country with these offers. That's where we all can make a difference.
Summing up
Wisefund announces that it will provide an option to get financial support via crowdfunding loans for small businesses across Europe seeing a reduction in revenue because of Coronavirus and restrictions imposed due to it.
- Businesses with who have seen significant sales decreases of 25% or more will be eligible for loans of from 10,000 € up to 250,000 € to help mitigate losses in profit;
- interest rates will be from low to medium to support the businesses;
- Wisefund will take no commission;
- We will review applications within 2-3 business days and get ready for signing and publishing with quickest possible approach;
How to apply?
Please note: this is not an offer to give away free money. This will be debt you will take on you and your business. So please consider wisely before applying. Wisefund will take a careful approach to each application keeping in mind our vision to support businesses but still care for the crowd who will lend their funds to support your business.
To apply, please reach out by email to a dedicated email channel . To speed up the review process please be sure to list the following:
- Amount of funds you'd like to get as a support
- Corporate documentation for KYC check
- Description of how your business got affected
- Description on how you see withstanding the crisis and repay the loan
- What current liabilities your business holds
- Your contact information
- Your business must have been actively trading for at least the past two years (we can support younger companies who have demonstrated strong growth potential over a shorter trading history)
- Your business must meet our minimum credit risk and fraud criteria
Additional questions may be asked after receiving the application. In case of a successful review, we'll mutually sign a Memorandum of Understanding to be eligible listing funding request on your behalf.
Only funding rounds reaching 100% target amount will be released to businesses as we don't support partial funding.
Who can apply?
You can apply if
- you operate a business based in Europe
- you've seen (or will see) a reduction in revenue because of Coronavirus and restrictions imposed due to it
- you can prove future repayment capability
- you have good credit history and no other debts
Wisefund understands that in the situation described above banks will still require regular interest payments to be made, and if a business is totally out of current cash flow, but has a great potential to continue working with profit once restrictions are removed, we need to support them. And not just locally, but throughout the continent. (sidenote: