Perhaps you have never heard what crowdlending is, but it may be that from now on it will be a term with which you are much more familiar. It even serves to make your savings profitable in a more satisfactory way to defend your interests as a user. Because indeed, crowdlending is a financing for companies and individuals This is carried out by a group of investors who wish to accept this financial proposal in exchange for an economic return.
To give you a clearer idea about what crowdlending really is, we will tell you that it is an operation very similar to those that are the credits between individuals. Better known as P2P, and where two parties in the process take action. On the one hand, those who need a line of credit to meet a series of needs. And on the other, the investor who is the one who contributes this money in exchange for receiving a very interesting return on this operation. In this way, both parties benefit from the movements they make.
The operations known as crowdlending are developed by financial platforms and credit portals between individuals that allow users to reach their respective objectives. With a series of tools that are imported so that the operations are much safer and even with guarantees on the protection of operations. It is an innovative proposal that has been emerging in recent months as an alternative to financing that is produced from banks and financial institutions. Do you want to know more about this new service that you can have from now on?
Crowdlending: for investors
Of course, one of the great beneficiaries of this service are small investors. This is so because they can give a liquidity tip to other people who need it. But with the great advantage that this operation will bring them more profitability than a good part of the products destined for investment. Because in effect, through this system you will be in perfect conditions to achieve a interest rate of up to 7%. It is a percentage that is very difficult for you to obtain through time deposits, bank promissory notes or even from investment funds.
In any case, you do not have to invest excessively high amounts. If not, on the contrary, they move under very affordable margins for all households. From only 1.000 euros and up to 20.000 euros approximately. Where one of the greatest novelties that this system of so special is that you will have from the beginning with greater protection tools in operations. So that in this way, the risks in operations are significantly reduced.
For credit applicants
From the perspective of people who want a small line of credit, it is also a very interesting product or service, as you will see below. You can access the credit market if your usual bank does not grant you a credit or for any other circumstance. Without asking where you are going to spend at any time the money demanded. You can use it to pay off a debt to third parties, pay taxes or even face an unexpected expense that can misalign your personal or family budget. From this perspective, it is constituted as an alternative to the financing that you have at the moment and perhaps the last opportunity to obtain a small line of credit.
However, its great advantage is that you can formalize the operation under better conditions at the signing of the contract. With a much more competitive interest rate than that offered by banks. To the point that you can get a 5% credit, that is to say with a reduction of a few percentage points with respect to traditional financing. But what is even more important, without the need to go to your bank and through a much more agile process than until now. Where you will have to choose between different sources of financing based on your real needs. With the application of a series of filters to make the operation safer.
Common denominator: more flexibility
If there is one thing that distinguishes this financial product or service, it is because of its greater flexibility. So much for the two parts that make up this process. Not in vain, no there is a term or a minimum investment, but on the contrary you will have more flexibility to carry out each of the operations. Regarding investment and as a applicant for a small line of credit. Although it is true, and for reasons that you will well understand, the operations carried out are not of high economic value. If not rather small and for very limited and specific movements.
From this scenario, you should know that to carry out these very special operations you will only need register and identify yourself on the platforms that provide these characteristics. So that from now on, you can access the proposal that best suits your profile as a user. On the one hand, as an investor, you can look for the client that offers the highest profitability and with a return period that is really satisfactory for your personal interests. And from the point of view of the applicant for the financing, the objective will be to choose the loan that best suits your own characteristics: amount, terms, interest, etc.
Risk containment
Another novelty offered by crowdlending at the moment is that the risks in operations are very well defined. Mainly because they have powerful protection mechanisms attached that will be very interesting in the specific case of investors. On the other hand, you cannot forget at any time that investors do not require experience to carry out their movements within these credit portals between individuals. If not, on the contrary, they have immediate liquidity in open positions on digital platforms.
Another feature that this innovative service provides is that they can sell your positions in secondary markets if they want to have liquidity in their checking account. Although in this case, the interests in which the operations are crossed will not be as profitable as those made from the operations with other people. It is something that you have to take into account to avoid the odd problem in this kind of atypical investments that we are talking about in this article.
Choose between several credit offers
On the other hand, it also gives you the possibility to select loan offers from a wide range of proposals on which you must base your decision. This factor is completely valid, both for small investors and for those who demand credit lines. To the point that you can opt for the option that best serves your interests. Something that you cannot through the offers that banks or credit entities have been making. From this perspective, there is no doubt that crowdlending is something different and that it has nothing to do with the credits more or less conventional.
In another step, this kind of operations in financing between individuals, you have the assurance that the necessary filters will be generated to optimize operations From the first moment. In other words, reduce the risks that these operations carried out between individuals may carry. With a priority objective and it is that these movements are accessible for a good part of the users. Beyond other technical considerations and maybe from a fundamental point of view. Because it is a completely different service from others that you had at your disposal until now.
Advantages of crowdlending
Of course, this type of loans between individuals offers you a series of advantages that other more conventional financing systems suffer. Among which highlights the following contributions that we expose you below.
- Crowdlending is formed as a real alternative to credit and that can generate returns higher than 4%. Both with regard to the two parts of this intermediation process between private clients.
- Offers a much more competitive interest rate than through traditional formats. To the point that it can double or triple the price of money in these financing systems.
- These are operations that they do not carry commissions nor other expenses in its management or maintenance. So that in this way, the profitability in each of the operations is much more powerful since the interest will be received in full. Among other reasons because there are no mediators.
- It is a service that is open to all kinds of users and where you will only have to be familiar with the new tools that come from new technologies (computers, mobiles, tablets, etc.).
- And finally, if what you want is to carry out large operations, it will be better to give up the attempt because these are not models that move under these monetary variables. To satisfy these needs, another class of more specific financial products that will be more interesting for you are enabled.