Crowdlending and its main features – Immediate loans
Crowdlending and its main features
It is almost a fact that on more than one occasion you have heard about the Crowdlendig, but in reality you do not know what it is about, so today we will know a little more about this term that is very important in the world of credits instantly, since it is the dilemma of granting or not an immediate loan without paperwork to the people or on the contrary reject it.
This is because for several years now that decision will also depend on the Internet, although it seems strange it has come to revolutionize the collective finances of companies, and for this there are a lot of online crowdfunding platforms on the web and the variant that in this case is the crowdlending, since they are alternatives that have been generated as one of the best bank credit.
So in general terms it is a platform that has its space on the Internet, in which when a person requests financing, especially autonomous people or SMEs, a group of people can grant the credit, but always in exchange for interest.
Difference between Crowdlending and Crowdfunding
Surely you are wondering then what is the difference between the Crowdlending and the Crowdfunding, since although they are practically very similar if they work for different purposes, such as an immediate loan without paperwork or a new credit. For example, Crowdfunding is one whose main mission is to finance new business projects , which can be implemented by SMEs, emerging companies or also known as startups, since they are companies that have great potential in the growth and that due to its main characteristics has a high risk at the time of its investment, it is precisely for this reason that they are outside traditional bank financing, since they prefer not to invest in them.
On the other hand, crowd-funding is one of the models that works very similar to loans, that is to say that a company, SME or an individual person, consumer can return everything invested by the lenders that in this case are the investors in a period of time that is agreed in advance, with the difference that they must pay an interest rate that is also fixed. That is to say that all those who are part of that platform are investors who by the simple fact of placing their money in some type of business can obtain a return through interest, just as it works with traditional banks.
That is to say that with the crowdlending any individual or company can request an amount of money to buy any type of product such as a house, a car or what you need for investment in your business and be able to pay it through installments, as if it is of an immediate loan without paperwork , with the great difference that it is requesting from a company that can be considered as an intermediary and that the interest that must be paid can vary depending on the investor that is the one that places the money.
The legality and inconveniences of crowdlending
Surely you are wondering if the crowdlendig has problems, and the reality is that if as in any other financial institution, since some of the most important platforms require users to have opening, return, portfolio management, non-payment, revocation of payment orders, insufficient balance, among others. Therefore, a crowdlending institution is not as good as it seems.
Support based on the Law for the Promotion of Business Financing
Now to the question whether this type of platforms are really legal in Spain, the answer is yes, since they have been regulated by the Law on the Promotion of Business Financing, so users are also protected from abuses in that sense, since the law indicates that the administrators of the platforms should not have any kind of problem or open trial in the courts, since they must be very strong organizations.