Crowdfunding and P2P financing have recently gained fame as a funding choice for SMEs and small companies. Regardless of the relative newness of these financing versions, it appears they are here to remain. Listed below are some of the benefits for both borrowers and investors/lenders.
Provides simple accessibility to funding
The main reason why both crowdfunding and P2P lending is now great choices for gaining funds is the simplicity of the application procedure. Together with crowdfunding and P2P financing, banks and venture capitalists are not the sole bastions for increasing capital.
Excellent marketing tool
Crowdfunding is a good method of introducing a new product or your company to the market through an online-based platform. It's a free and effortless method to reach several stations to spread your voice, particularly as most crowdfunding platforms have been integrated with social networking mechanics.
Bank loans may take weeks prior to a licensed loan is disbursed. On the other side, crowdfunding and P2P lending may meet a loan in days, even hours as long as there are enough interested investors and lenders.
Crowdfunding and P2P lending brings not only debtors but also investors and lenders. With crowdfunding, the majority of the investors will acquire gifts and tokens of appreciation against the borrower. However, P2P lending provides an investment tool to investors.