Historically businesses needing funding would turn to the bank or other traditional financial institutions. Not anymore. Crowdfunding has become hugely popular. Funding can be obtained online from a variety of investors. Investors can invest anything from £10 upwards and businesses seeking funding can obtain monies from a number of investors all willing to invest nominal amounts.
The boom in croudfunding causes problems. Who is protecting the investors and the business seeking funding in this risky business? The answer is nobody. Several financial institutions have expressed their concerns over this lack of regulation.
However, even though crowdfunding is not regulated does not mean to say it should be dismissed as a way of getting investment or indeed investing. Please make sure that research is carried out before getting involved.
It is important for anybody facing financial difficulties, whether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.
To take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at one of our offices in Driffield, Scunthorpe or York. Alternatively we can meet clients at their premises or those of their professional advisor.
Redman Nichols Butler has had an office in Driffield since 1996, an office in York since 2008 and Scunthorpe since 2011. Redman Nichols Butler specialises in advising directors of limited companies and individuals in East and North Yorkshire, and North East Lincolnshire areas, in all aspects of corporate and personal insolvency.