What is the crowdlending?. It is a system of non-bank financing which is based on loans to companies through a network of investors.
This is a pioneering way of connecting organizations or individuals that have funds to invest in those companies that wish to finance themselves through an online auction platform.
This new way of interacting between supply and demand for capital, which has developed around the technological world, is fashionable in many other sectors.
The key to your success
The main reason why these types of platforms are so successful is due to the financial crisis that we have experienced in recent years and which has made it more difficult for companies to access credit, especially for smaller ones.
This non-bank financing system can reduce borrowing costs.
Interest rates can be lower than bank rates and companies can use these savings for other items of their activity.
In turn, investors individuals can obtain higher interest rates than in other types of investments, even reaching 8% interest rates.
The risk for investors
However, like all investment activities, crowdlending involves some risk for investors.
However, compared to other forms of investment activity it may be considered of lower risk, due to the solvency determinations that are made.
To reduce this risk, bank-like tools are used to examine and check solvency of the companies that operate on the platform.
If you have any questions about it, in Workcapital SA CAN to advise you.
