The detail
Reward crowdfunding is not a loan. There is no interest, no repayment schedule and no lender with a claim on the business.
What you do owe is fulfilment. Every backer picked a tier, and delivering that tier is the obligation you took on.
That is different from lending platforms, where the money is a debt with a repayment term, and from equity platforms, where investors buy a share of the company.
Read the full guide
An honest comparison of how small businesses fund a project — bank loans, SBA loans, grants, investors and community crowdfunding — and when each one makes sense.
How to fulfil what you promised without losing money or goodwill: tracking, timelines, postage, and what to do when something slips.
Keep reading
Money raised in exchange for rewards is generally treated as business income, and the cost of fulfilling those rewards is generally a business expense.
No. You receive a reward, not shares, interest, repayment or any financial return.