You do not need to be fully familiar with peer-2-peer debt crowdfunding or crowdlending. We are experts in this area and work hard to make your investments successful within this investment model.
However, here is a brief description of crowdlending platform, as it’s helpful to understand why our financing company, which invests 100% of its assets into loans from marketplace lending sites, has a very low risk profile. Even for equity investors and even more so for lenders.
Crowdlending vs. peer-to-peer lending vs. P2P debt crowdlending platform lending
There is no generally accepted phrase yet for the industry we are in. We like crowdlending and marketplace lending best and use these phrases more than others.
What does a crowdlending platform do?
A crowdlending platform brings investors (the crowd) together with borrowers and allows the investors (or lenders) to lend small sums of money directly to hundreds or thousands or borrowers. It does so through an efficient online account system, the platform. A crowdlending platform performs a number of activities that banks also perform, namely:
Marketing to borrowers and lenders / savers
Risk assessment and „underwriting“, i.e. establishing a lending contract
Administration of the lending contract (payments, etc.)
In case of a default: Activities to try to recover the principal and interest payments
A bank, however, is a balance sheet lender, i.e. it invests its own money in the loans and guarantees itself the interest it promises to pay to its depositors. A marketplace lending platform does not assume any such risk, as it is just an intermediary between the lenders and the borrowers.
Innovation of the Lending Deposit business model
We take the risk and effort out of crowdlending. For smaller investors, our time deposit product will be ideal: Your funds are secured by our own equity, as well as an already diversified lending portfolio. For larger investors, we offer a tailored advisory and investment management service.