What is crowdlending?
He crowdlending is a non-bank financing tool that is carried out through private person loans to companies or other individuals.
The investors of the project in return receive the amount that the company pays for the interest rates and the platform receives a small commission for acting as an intermediary.
It is a practice that is booming, especially for those companies or individuals who need financing for a project and for whatever reason cannot or do not want to resort to a traditional bank loan.
Be the first to take advantage of the potential of Crowdlending
You do not need guarantees
Great speed of procedures thanks to the use of the internet
Higher level of indebtedness thanks to the non-consumption of CIRBE
Great flexibility in loan repayment terms
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How does crowdlending work?
He crowdlending It is an instrument that allows companies or individuals to obtain financing for a project through the collaboration of a group of people who invest an amount of their money in the development of said project.
In exchange for your contribution, investors receive compensation which will be the interest rate paid by the company that receives the financing for repaying the loan or they may have a participation within the company that receives it. Besides the crowdlending platform that has been used both to request the loan and to facilitate the financing you will receive a small commission for your services as an intermediary.
It is true that the loans are cheaper than in a traditional bank, but in addition to this they enjoy another series of benefits such as Quick response and receipt of the amount as everything is managed through the Internet or that this type of request does not consume CIRBE, which means that crowdlending has completely become an alternative to going to a bank to find solutions.
When a company decides to use this tool to request financing for a project is herself the one who decide the amount what do you need and the deadlines which are going to be fixed. Individuals who decide to provide aid will do so at their discretion and by contributing the amount they decide, receiving an interest rate proportional to their contribution.
Before requesting the amount, it is very important to carry out studies on the solvency of the company and the feasibility of the project, because although the platform does not require guarantees, yes requires having some guarantee that the risk of non-payment is not high.
In addition to this, it also makes available advantages for the investors, as the ability to get your money back in the event that they want to withdraw their participation, since there is a secondary market in which other investors can buy the investment that they wish to withdraw and thus the money is easily recovered.
The rapid growth of this tool is mainly due to the greater difficulties that more and more traditional banks pose for access to financing. Fewer and fewer requests that try to develop through these channels are granted and this encourages companies to stop resorting to traditional banking as the main option to find a solution. This, together with the rise of the internet and the collaborative economy, has produced that these new financing alternatives have had a totally rapid and unforeseen growth.
For all these reasons, this financing method is important to be considered by companies that need a solution, although it may be the case that they do not receive the entire amount requested, the great speed with which contributions can be received have made that many companies have been able to start in a good way without having to go to a bank whose procedures would have meant greater impediments.
Advantages of Crowdlending
It is a type of financing that generally does not need guarantees as it is not risky for the investor, except in specific but unusual cases.
As it is managed through Internet platforms, the procedures are faster than a loan through a traditional bank
It does not consume CIRBE, so it allows a higher level of indebtedness for not appearing as a company with a certain level of risk
Both the amount and the repayment terms are set by the loan applicant, so these terms are highly flexible to adapt to the solvency capacity of the company