Sunday, December 16, 2012

PRODUCING: Yet Another New Model For Funding

In addition to fundraising through Kickstarter/IndieGoGo, Kiva (the microlending organization) has a new thing called Kiva Zip, which they wrote about on Fractured Atlas' Blog:
Kiva Zip is a new development from Kiva, which aims to extend access to capital for entrepreneurs in the United States. They are offering 0% interest loans up to $5,000, which are crowd funded by individual lenders from around the world. Since they launched at the beginning of this year they’ve funded over 80 entrepreneurs across the country, with businesses ranging from hot dog vendors to yoga instructors. A number of independent artists have successfully fundraised on Kiva Zip over the year and the feedback has been overwhelmingly positive.
I hope artists are judicious with this. A 0% loan sounds very much like free money, but it is not. Even a 0% loan must be repaid. I would never, for instance, take out a Kiva Zip loan for a theater production, because theater productions lose money. Loans are good for things which will, in the future, make you more money. A new camera for a photographer is probably a good candidate for a loan -- the outlay is once but the profits recur.

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