Debt Based crowdfunding

Types of Loans Available through Debt Crowdfunding

Debt Crowdfunding Loans

Debt Crowdfunding

For those familiar only with rewards- and donation-based crowdfunding, the debt crowdfunding process may feel alien. Before listing on a portal, applicants must submit tons of financial and personal information for review. In order to even receive a quote or verify your project’s eligibility, portals must retrieve your credit score and run an identity check, among various other things.

As can be seen, the process is much more complex and requires a great amount of forethought. Repayment periods, interest rates, portal fees, and myriad other details must enter into the equation early on. Those choosing to engage with debt crowdfunding must also be mindful of the economic environment around them. This is particularly true for startups in competitive markets. But putting the specifics aside, crowdfunders should know the types of debt crowdfunding loans available to them.

Personal Loans

Different portals offer different loan opportunities. Prosper excels at connecting individuals with personal loans for nearly any occasion, including debt consolidation, home improvement, auto, medical/dental, vacation, baby, engagement, taxes, and more. These loans range from $2, 000 to $35, 000 with an amortization period of three to five years. The interest rates, processing fees, and loan options will change website-to-website, and even country-to-country, so research the market well before listing.

Business Loans

Similar to the personal loans, business loans come in many different forms. For instance, Assetz Capital, one of the UK’s fastest growing peer-to-peer lenders, allows startups to apply to one of three loans: property development, mortgage, or business. Like most other portal offerings, these loans require security and span the course of one to five years. The amount a business may borrow varies as well. Funding Circle, a leading debt crowdfunding portal in the UK, allows businesses to borrow £5, 000 to £1, 000, 000. The fees are often transparent on such portals and right from the home page businesses can see the common lending rates.

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by Aeurelius

No. 6 Spending $15 billion on a program that would hire construction workers to help rehabilitate and refurbishing hundreds of thousands of foreclosed homes and businesses
This is TEMPORARY JOBS!!! and why in the hell is tax payers footing the bill for foreclosed homes? Are you a retarded or what?
No. 7 Creating the National Infrastructure Bank (capitalized with $10 billion), originally proposed in 2007, to help fund infrastructure via private and public capita
This does jack shit to create jobs. It is a slush fund.
No. 8 Creating a nationwide, interoperable wireless network for public safety, while expanding accessibility to high-speed wireless services
Private sector does internet better

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