A large number of small to intermediate companies were placed under great stress when the banks stopped or cut back on lending. It was a situation in which short-term loans were often what kept many businesses afloat while they awaited delayed compensation for services or products they supplied. The bank problems made the situation even worse because the clients and customers businesses relied on for their cash flow were strapped financially, too. Work became harder to find, and without small business funding from other sources, some companies were forced to close their doors.
The range of necessary funds can vary from R1,000 to R100,000 or more in small business funding. The amount needed has provided for various and creative ways of crowd source funding. Based on circumstance, there is usually at least one way and often several of procuring small business funding through a crowdfund.
There are four primary crowdfunding models, and there are variations within each.