Whether seeking opportunities for investment or looking to borrow funds, your first port of call might be the bank. However, there are other avenues that investors and borrowers can investigate for financial assistance or advice.
As crowdfunding has become more popular over time, more and more people are looking into giving and receiving money en masse. Rather than consult a bank for a loan or an investment advisor, people are finding other methods for managing their wealth. With crowdfunding becoming more accessible and manageable from home, investors and borrowers are considering the benefits of getting and giving loans to and from people, not banks.
In the following article we will explain and discuss the benefits of crowdfunding for both sides of the investment and borrowing coin. Hopefully by the time you have finished reading the article you will have begun to understand the many amazing benefits of getting involved with crowdfunding, whether as a borrower or an investor.
Loans from People, Not Banks, for Investors
Investors often fall into two camps: individual investors, and investors in groups. The principle behind crowdfunding is to join forces with other investors to put your money behind an idea, product or business, thus ensuring that the borrower gets as much money as possible. This also helps the investor to lower their chances of a risky investment.
Investors can put as little or as much of their money into the endeavour as they like, and still see benefits. Rather than investing as one single investor, they can share the risk amongst other like-minded investors who see the benefits of the success of their backed product or company. When a group of people invest in this way it is highly likely that a large amount of research will be done into the investment in question to ensure a strong chance of a positive return.
Another benefit is that investors can spread their funds across a number of ventures. Rather than placing all of their eggs in one basket, investors can diversify their portfolio at a lower price than may be possible through a bank or investment advisor. This means that as an investor you will also have more control your investments. You will be able to see them progress in real time and also be able to monitor them from the comfort of your own home. You can be more involved in your investments, and you can choose projects and ideas that you are passionate about.
One other often overlooked factor is that crowdfunding investments may yield higher returns than other more conventional options, such as returns from financial assets such as shares quoted publicly or bonds.
Sign up as an investor with Go2BusinessLoans and see how crowdfunding can multiply your money and create a diverse portfolio for your investments.
Loans from People, Not Banks, for Borrowers
Borrowers often go straight to the bank when looking for investors in their business or product, but this has changed since the early days of Kickstarter and other initial crowdfunding platforms. For many borrowers, crowdfunding may be a more successful option than seeking traditional investment. Particularly for smaller personal or business loans, going to a bank or individual investor can be a lengthy process that involves a lot of paperwork and high interest rates.
Banks and individual investors, sadly, are not infallible. Loan applications can fall through, and with the high rates of interest, it can be tricky to stay on top of the money owed back. This can cause some borrowers to fall behind on their repayments, which is of course not ideal when they are trying to launch a product or idea. Crowdfunding loans can be more flexible and be designed to suit your needs, rather than a one-size-fits-all approach. With crowdfunding, the potential for funds to get to you quicker than a bank loan exists. Rather than waiting weeks or even months for approval, a crowdfunded loan can often be settled rapidly. You can get lower interest rates through people-funded loans, too.
Perhaps one of the most appealing parts of a crowdfunded loan is the tailoring of the funding to your particular product or business. By getting loans from a number of people, not just one bank or individual, borrowers can find people who are emotionally invested in supporting them, rather than just lending out money for future financial gain, as the banks do. Borrowers often find that it is local businesses, investors and supporters that back their campaigns, but there is also the scope to send your product or business’ potential across the globe. By borrowing with crowdfunding, you can attract clients or customers even whilst you are raising the money. It provides an excellent way of testing the waters for your idea even as you build the support for its creation.
Sign up as a borrower with Go2 Business Loans and get an appealing loan that works specifically for you and your needs!
This is peer to peer lending and your investment is at risk. We encourage investors to diversify their portfolio and to review all investments to ensure that they meet with their own investment criteria.