#CondaTalk – What is Crowdlending?

📢 What is crowdlending? 💡

We have already introduced you to crowdfunding and crowdinvesting in previous posts – today we are focusing on another important component: crowdlending.

Crowdlending is an innovative form of financing in which private investors or companies borrow money directly from a large number of investors – the ‘crowd’. Traditional banks are not involved. Instead, specialised crowdlending platforms act as intermediaries, which significantly simplifies the process for both sides. 🔄💰

✨ How does crowdlending work?
Investors provide their capital and receive a repayment including interest in return. Unlike crowd investing, there is no participation in the company, but rather amortisation of the loan with a fixed interest rate. Applications for financing can be made conveniently online – quickly, transparently and without obligation.

There are two types of crowdlending: ➡️ P2P and P2B lending

P2P lending (peer-to-peer): Loans are granted to private individuals.
P2B lending (peer-to-business): Here the loans flow to companies, mostly small and medium-sized enterprises (SMEs). This term is less common, but is often subsumed under P2P lending.

💬 What do you think about crowdlending? An exciting alternative to traditional financing?