Does alternative financing grow rampant in the world? Is it assertion or assumption? Affirmation! Pray the saying that we are stronger when we collaborate and work together. This seems to have become increasingly evident in recent years. Collaborative economics and initiatives stemming from collective action are becoming the way to work efficiently and survive the future.
When we analyze the collaborative loan and the alternative financing, this propensity becomes even sharper. But why is collective funding growing in the world? More and more tired of bank controls and the way the economy is governed, people have been looking for alternative solutions that offer more security and freedom.
What is alternative financing?
Especially when it comes to controlling your finances. The peer-to-peer loan, also known as Lending P2P loan, or crowdfunding are just examples of these trends.
These types of transactions have grown more and more in the world and proven that not everything needs to be passed by the bank. Many people have proven the effectiveness of alternative financing, especially when it comes to investing or raising funds for projects and new ventures. Understand how these collaborative loans work and take a turn in your financial life.
What is the difference between the P2P loan and crowdfunding?
Crowdfunding and peer-to-peer loans are two types of collaborative loans. In this type of transaction the interested parties do not have to be intermediated by the bank. All trading takes place directly.
People-to-people and crowdfunding share a common principle: raising online funding from several people, or investors, who they can recruit through digital platforms. The crucial difference between crowdfunding and P2P loans, or market loan as it is increasingly known, is how to pay your investors.
Crowdfunding is a method of getting resources that is usually best suited for start-up companies or for small businesses in distress as it is not necessary to make regular repayments like you would with a bank loan. In the case of crowdfunding, investors generally benefit from actions or products made firsthand.
Most crowdfunding platforms involve selling shares in your company. This scheme is known as stock-based crowdfunding. Some global crowdfunding sites operate a rewards-based scheme where, in return for a contribution, you give your investors the final product you are making.
What are alternative loans based on?
The peer-to-peer loan, in turn, is a quick and affordable way to get help in your company’s finances. The essential difference between P2P loans and crowdfunding is that you do not distribute any equity but pay interest on borrowed money – just as you would with a bank loan. P2P loans are considered more suitable for established companies that can meet monthly loan repayments.
In Brazil, both Crowdfunding and peer-to-peer landing are done in a completely digital way, through electronic platforms and applications. The interested in this type of transaction should just download the platform of your choice, put your information and wait for the approval of the loan. Simple and quiet, without having to go through the barriers of the seats. You can use these two types of collaborative loans for student loans, debt payments or acquire a property.
How is the collective financing in Brazil?
Alternative financing, although still a novelty in Brazil, has been gaining more and more supporters in the last decade. The first company to do this type of transaction in Brazil is IMPULSO, a member of Aliança Empreendedora, which has been supporting a number of micro-entrepreneurs since 2006, and has been on the web since 2009.
In places like the UK, this system has also become increasingly strong. To get an idea, only 2.8 billion pounds were raised in 2015 through alternative types of funding.
Collaborative funding has grown in the world and it’s no wonder. Both the Crowdfunding collective loan and the ” peer to peer lending P2P loan ” bring innumerable advantages to those who want to invest or need resources. It has fewer risks compared to other types of loans and financing.
If you are looking for where to invest or need a loan to carry out some project, it is worth knowing the mode of collaborative loan and alternative financing. They are revolutionizing the economy and may be the right move for you.