Crowdlending = loan-based crowdfunding
Crowdlending is a new way to provide business loans. It is also a brand new, attractive field for investors. Crowdlending, or loan-based crowdfunding, is a growing market and an increasingly popular alternative to traditional bank loans.
Crowdlending uses an online digital platform to match suitable borrowers and lenders. In most cases, this means that a variety of different investors are providing the loan capital. The interest rate is set by the crowdlending platform and determined by the risk rating for each project.
Regardless, crowdlending can be a very good solution for all involved parties. By eliminating intermediaries, the distance between borrowers and lenders is removed. Crowdlending also decreases the costs, leading to better returns. Interest rates for borrowers decrease and returns for investors increase. Many banks reject loan applications from small businesses, making crowdlending an excellent alternative to find new investors who believe in the business idea.
ZWEBB are proud to have developed a unique crowdlending platform. Six years of software development has resulted in a platform that is the foundation of Scandinavia's largest crowdlending company - Kameo.
- The integrated Loan Management System (LMS)
- Interactive dashboards for both investors and borrowers
- New investment possibilities - cross border investments
- BankID-based e-signature modules for identification and sign-off
- Tax agency reporting (RegTech)
- Tools for customer due diligence (KYC, Know Your Customer)
- Open API connectivity
- Deferred Payments (in all available currencies)
- Electronic, real-time contract generation
What is the difference - crowdfunding vs crowdlending?
By now, crowdfunding is a widely known concept in financing. When crowdfunding, companies that need capital are financed via digital platform. In most cases, many individuals contribute smaller amounts. Crowdfunding can be done in several ways, such as pure donations for future rewards, or for a future equity stake in the company. Crowdfunding often means that you are donating to the business without any guaranteed returns. Crowdfunding has no cap on how much you can get out of an investment, but it could also mean that you won't get anything at all. This is where crowdfunding and crowdlending differ substantially.
Crowdlending is an investment where investors get regular returns on their invested capital. Crowdlending is often performed with security, usually in form of assets, shares and/or personal guarantees. Investors usually have the right to have their investments back with interest. The returns can be withdrawn or reinvested in other projects on the crowdlending platform.
About crowdlending platforms
FinTech systems that combine IT and finance software (such as crowdlending platforms), have high demands on technical solutions. The calculations are complex and many different high-tech systems need to interact. At the same time, the platform needs to be easy to use. The platform needs to load quickly and work well, no matter if you're using it on a desktop computer, mobile phone or tablet. The unique Crowdlending platform delivered to Kameo by ZWEBB is both a complex financial instrument and an easy-to-use tool, featuring solutions like Loan Management System (LMS), with loan origination included and Cross Border Investments, using BankID for identification and sign-offs. Platform's dashboards, alongside the other FinTech services and features, like Risk Score Calculator, KYC and RegTech compliance tools, are used by thousands of Kameo members across Scandinavia every day.
Crowdlending is the future
Times have changed. Investing in companies and ideas is not only for venture capitalists and business people. Crowdlending is the future, as it directly connects the right borrowers and lenders without unnecessary intermediaries. The technological advancement provided by ZWEBB's crowdlending platform takes the financial industry forward and opens up entirely new business possibilities.
Are you looking for a producer of a Crowdlending platform adapted to your target market? Please get in touch with ZWEBB by filling out the form below.