The notion of crowdlending, a fusion of "crowd" and "lending," introduces a novel outlook on the financial arena, where direct cooperation among individuals transforms the mechanisms of sourcing and granting funding. In a setting facilitated by digital platforms, peer-to-peer lending is emerging as a compelling and appealing substitute to traditional financing mechanisms.
Within this framework, loan applicants lay out their funding requirements with thorough descriptions of their projects, goals, and the precise sum of resources needed, all presented on online platforms custom-tailored for this specific purpose. Simultaneously, individual lenders, those on the lookout for alternative investment avenues, delve into these proposals and are empowered to cherry-pick the opportunities they find most appealing. Unlike the traditional banking model, where major institutions function as intermediaries, the crowdlending model sees individual lenders contributing modest amounts that amass to compose the entire loan quantum. Upon achieving this collective goal, borrowers gain access to the requested funds and commit to repaying the loan, along with accrued interest, within a mutually agreed-upon time span.
However, it is essential to keep in mind that, as with any financial investment, crowdlending involves certain risks. Lenders may face the risk of default by borrowers, which would affect their financial return. In addition, crowdlending platforms generally impose fees on users for their intermediation.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.