Options to invest in loans

There comes a day when you decide to start taking advantage of your savings and become an investor in search of an interesting return for your money that is ‘stopped’ in a bank deposit.

Then you ask yourself the first questions

Then you ask yourself the first questions

The basic ones that you must rethink to start investing; “How much am I willing to invest? What profitability do I estimate to take out that amount? What term do I want for my money?” Once these questions have been answered, the next thing you should ask yourself is “where do I invest?”, Then a wide range of possibilities opens up for you to deposit your money in order to take advantage of it;

  • investment in company shares
  • Invest in participations
  • Invest in public debt
  • Invest in currencies
  • Invest in investment funds
  • Invest in real estate
  • Invest in art etc.

But a new place has appeared where you can invest your money, this is the investment in loans also known as Crowdlending.

How is that to invest in loans?

How is that to invest in loans?

Nowadays thanks to the appearance of Crowdlending or Crowdfunding of loans, anyone can lend their money directly to companies or individuals who need it and instead of going to a bank branch, they go to a Crowdlending platform, this is how The investment in loans is made.

The person who invests in loans, in addition to choosing company, term and profitability for their money, will have the satisfaction of knowing what the money is being used for, an impossible matter in the case of depositing it in other financial products.

Invest in loans What types exist?

Invest in loans What types exist?

There are several generic types where anyone can invest directly in loans, loans for business projects, loans to fund entrepreneurship projects or personal loans.

Each platform generally specializes in one or more of these types. For example, in Good Finance you will find options to invest in business loans and entrepreneurship (many of the latter backed by SGR).

Invest in business project loans

Invest in business project loans

Companies, as a result of their activity, may have different financing needs, whether for the expansion of the business, to be able to finance the circulating material, to acquire supplies, provisions, etc. Through investment in loans, Crowdlending platforms manage to gather a number of investors who contribute capital in exchange for a return.

To evaluate this type of loans, the platforms analyze the accounts of the companies and thus be able to estimate the risk of the loan application. These business projects include both freelancers, SMEs, microenterprises and large companies.