For most small businesses, raising capital is seriously hard work. For those of us living in the tech-bubble, raising money is fairly standard practice, and the money is there, given the right product, market and team. For small businesses, like cafes, salons and building firms – it’s another story. Many small businesses struggle with not only financing, but day-to-day cash flow that is critical to pay salaries, taxes and buy equipment.
Toborrow provides a lending platform that brings together savers (consumers) and connects them to small and medium sized businesses in need of a loan. Toborrow functions like many of the popular P2P lending networks you’ve probably heard of (Lending Club, Prosper and TrustBuddy here in Sweden), except the loans are used to help small businesses.
In addition to better returns (due to higher interest on short term loans), a big part of Toborrow’s pitch is that consumers and savers can help stimulate the economy, promote entrepreneurship and create more jobs.
Sofie Lundström, one of Toborrow’s founders commented;
“Funding is one of the last sectors to be revolutionised by a move to digital. We want to be the catalyst for innovative small and medium sized enterprises that help to transform the economy.”
Toborrow is co-owned by Bonnier and was founded by Lyndon Dodd, Andreas Thorstensson, Sofie Lundström, Niklas Möller and Josefin Lillhage.