post-lend

Post

Take a deep breath. Your campaign is over. Hopefully you’ve had enough pledges to make your minimum goal, or even better have pushed onward to your maximum goal. The work isn’t over yet though. After the campaign has finished, we’ll collect the pledges and deliver the Loan Contract to you. You need to give it your signature and electronically sign a direct debit initiation form (which allows us to debit the scheduled loan payments from your account on the set dates) and then you can begin putting the money raised from your campaign to use. Your attention then turns to paying it back to your lenders.

Repaying your loan

You use the money raised from your loan to invest in delivering your organisation’s objectives — putting the cash towards your purpose. The organisation begins achieving bigger and better things and cash begins to flow back to you. You then use these proceeds to begin paying back your monthly principal and interest repayments on your loan.

It works a little something like this:

  • we remind you a week in advance of the scheduled payment that we’ll be debiting from your account
  • you arrange to have the required amount in your account on the payment date
  • we receive your payment, take off taxes and our fee, divvy it up between each of your lenders and transfer the amount due to each lender to repay their contribution… all on the same day.
  • it’s as simple as that.

If you encounter trouble repaying, we encourage you to be open and come talk to us. We’ll discuss the situation and find a solution to the problem together.

A handy thing to do is to keep a spare month’s repayment on hand throughout the length of the loan so that you have a buffer for temporary unexpected shocks that you can call on.

Communication

You’ve gratefully accepted their money, the loan is established. But that’s not where the relationship should end. 

It’s good practise to keep your lenders informed about what you’re up to and the progress you’re making on your goals. We recommend a monthly update so they feel connected to the business. This is important: now they have an interest in you succeeding and you have an interest in them continuing to support you.

What we suggest is that you provide this bit of colour at each payment date and we can then pass the latest news on to your lenders.

Most importantly, communicating to your lenders allows them to support you further. They’re more than champions now, they’re a resource that want to see you succeed.

Further capital raising

You can raise up to $2 million through crowdlending or a combination of Lend and Equity campaigns over any given twelve month period. If your first offering raises $60,000 so you can hire a new staff member, and once you have them on board for six months you realise you need to buy some more equipment, you can do another Lend or run an Equity campaign.

Remember to keep your level of debt at a comfortable level so that your organisation avoids the trap of overleverage.

Postscript 

Now you are ready to run your very own PledgeMe.Lend crowdfunding campaign. Huzzah! We’ve covered all the basics of what you need to do to run a campaign. We can provide more specific advice about the PledgeMe platform if you need it.

Your next step is to make sure you’re ready to borrow and chat to us about using CrowdfundingU to prepare yourself to run a successful campaign.

The PledgeMe team is easy to contact.

You can fire through questions and emails to the team at lend@pledgeme.co.nz

Or call us on 027 Pledge 1

We’re super excited about helping you go out to your crowd. We think PledgeMe’s Lend and Equity crowdfunding options are the future for people raising investment from people to make things happen. 

We look forward to working with you,

Anna and the PledgeMe Team