How Crowdlending is growing!
Crowdlending, P2P lending, marketplace lending:
P2P (peer-to-peer) lending was the first term used to describe the process of brokering.
when crowdfunding started to become more popular, crowdlending becomes the
standard term. The final used term is "marketplace crowdlending" which was coined
to better capture the idea of a digital credit marketplace.
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Crowdlending is the term most commonly used in Switzerland , whereas P2P lending is
used in the UK and finally marketplace lending is a popular term in the US.
What is Crowdlending?
Crowdlending, also called peer to peer lending (P2P) or marketplace lending, involves
multiple lenders and borrowers over the Internet.
Lenders, which could be private individuals or companies, loan money to borrowers
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looking for funding. This happens through a crowdlending platform, which aims to match
the funding needs of borrowers with the investing needs of the investor.
Different types of Crowdlending?
How Crowdlending is growing!1Crowdlending is divided into three types:
1. Consumer Crowdlending: Encompasses loans to private individuals.
2. Business Crowdlending: Encompasses loans to companies (Generally SME's
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companies).
3. Real Estate Crowdlending: It covers mortgage-backed loans via crowdlending
platforms.
How Crowdlending is growing!2