Prep-b Tsolmon

Crowdfunding: a different source of finance

1. As shown case bank decided not to lend him any money. Therefore he decided to use crowdfunding.

-For producers

 They can make new customers.

 Crowdfunding doesn’t have an interest.
 Crowdfunding has no end date.

Summary: If small businesses use crowdfunding as a source of finance producers can make
new customers without any liabilities or expenditures.

2. Reasons for a loan from the bank might have been George Christakos’ first choice of a source of
finance.

 Reliable, and safe.

 Standart interest rates.
 No interference from the bank.

Summary: Firstly banks allow them to grow their business without any interference. Secondly favorable
interest rates and safety.

3. Possible reasons why customers decided to fund the enlargement of his restaurants.

 They can get back profit from producers.

 Customers invest their money and then get back dinner or lunch.
 In addition to investing, they are also helping to open restaurants near them.

Summary: Firstly they get back a product that fits the investment. Secondly, this restaurant is near to
them.