Why choose crowd funding over bank debt?

Even with the proposed changes to make bank funding more accessible, the time taken to gain credit approval can be a lengthy process; often taking weeks to get an answer.

The major attraction of Crowd funding is the streamlined application and acceptance process which can take as little as 48 hours.

Once acceptance has been received, the application is posted live online and the auction begins.

The major attraction of Crowd funding is the streamlined application and acceptance process which can take as little as 48 hours.

Crowd funding interest rates compared with bank funding

Each individual investor will state their own interest rates with those at a lower rate preferred to those at the higher end and therefore more likely to gain an investment.

Typical rates don’t generally work out too much more expensive than traditional bank funding and can average between 7% and 9.5%.

Typical rates don’t generally work out too much more expensive than traditional bank funding and can average between 7% and 9.5%.

Investors are swayed by an initial rating applied to the company by Funding Circle based on the the initial application. A question and answer forum also allows investors to get more comfortable with an opportunity and so lower rates if handled correctly.

More on crowd funding…

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