Crowder.PRO is a crowdlending platform. Many of our users ask us what are the fundamental differences between crowdlending and crowdfunding. Well, we hurry to explain that crowdlending is not....crowdfunding.
What is crowdlending?
Business projects are financed in financial (equity) crowdfunding through the purchase of shares ? usually in limited liability companies (or in their legal equivalents used in other jurisdictions). Crowdlending, on the other hand, offers debt ? platform participants lend to project sponsors ? developers and investors operating in the market ? in exchange for pre-determined remuneration. Usually a minimum level of investment is possible from as low as EUR 50.
Crowdfunding is direct investment in the acquisition of property (the acquisition of shares or shares in companies), while crowdlending - sometimes called debt or loan crowdfunding - is indirect investment through loans (there is no acquisition of ownership).
A characteristic feature of all of the above models is that an unlimited number of funders can participate in the fundraising process and its reach is worldwide. In every crowdfunding model, apart from the fundraising initiator and the donor, there is a so-called crowdfunding platform, which is a kind of market that aggregates the supply and demand for capital. This platform gives the opportunity to reach a wider group of stakeholders on both sides, allows the presentation of projects and regulates the processes of handling capital lending; may also supervise the process of issuing it.
Crowdlending (and crowdfunding) is particularly popular in the real estate market. It gives individual investors the opportunity to exposure to a market hitherto reserved for large capital, without all the problems associated with owning and managing real estate. When developers or commercial real estate professionals find investment opportunities, and they cannot or for some reason do not want to finance the entire investment themselves, then they use alternative financing outside of banking, including crowdfunding ? crowdlending or crowdfunding.
Financial crowdfunding (equity) in this case means the fractional acquisition of ownership of immovable property by acquiring part of the issued shares or shares of a special purpose company that owns the property. It is therefore approaching the classic real estate investment trust (REIT) equity units, but, while REITs are public, they are listed on stock exchanges and thus offer much more liquidity. Crowdlending, on the other hand, is investing via lending ? it usually doesn't give you the opportunity to own a stake and is therefore less risky.
More about the differences in our e-book, which you can download for free HERE.
Link Download the first in Poland
E-BOOK about crowdlending
for free!
- Do you want to safely squeeze many times more out of your debts than on a bank deposit or treasury bonds?
- Do you want to invest wisely in the real estate market?
- Are you annoyed by high inflation?
THINK ABOUT LOAN CROWDFUNDING
In the e-book you will learn:
- About the differences between equity crowdfunding and crowdlending
- How much money can be made from crowdlending?
- Why is there such a high yield?
- How well are crowdlending loans secured?
- Where do crowdlending platforms operate and what rates of profit do they achieve?
