Business loans by individuals without going through the bank
If you have a business idea and can not seem to get the funds from a bank, there are many alternatives you can try. At present there are only available sites (P2P) lending sites traditional peer-to-peer, but now some places are being transformed into something new called "crowdfunding".
Basics of P2P loans
We step back and start with the basics. P2P lending is a way to exclude out of the equation banks. This allows people to go online to borrow money directly to each other. For example we have to Prosper, Comunitae, Lendico is that it is one of the leading companies in this field. Then follows LendingClub.
Here's how it works P2P loans for a potential borrower: You agree to a credit check and reveals his state of between debt and income. Based on this information, it is assigned what amounts to a credit risk score. Considering the score, it is assigned a letter grade (AA E) and an APR according to credit risk you pose to potential lenders.
P2P lenders, protect their interests by buying multiple small loans, rather than pour everything into one big loan. That way if any borrower fails to pay, a lender only loses a fraction of their money, not the entire amount.
At first P2P lending they did not set high enough on who could borrow and do not adequately inform investors (lenders) on the level of risk involved standards. So the business model did not work. Now things have changed, standards have become more refined and more sophisticated.
It has reached the point where Prosper says that the average yield obtained by lenders after expenses, about 10%.
The P2P model evolves crowdfunding
Now, the basic idea of P2P lending is undergoing a change. USA They have come to the fore new they do what is called crowdfunding. With crowdfunding, a borrower receives the money only if enough people agree to put small amounts of investment. If you do not get 100% financing for a potential project, no money is not obtained at all.
One of the highlights is Kickstarter.com crowdfunding sites. Even if someone could lend money in a traditional P2P site and earn a good return on investment, this is not typically the motivation for people making borrowing money on a site like Kickstarter. Kickstarter user does nothing more than help entrepreneurs and entrepreneurs when they have a creative business idea.
There are reports that just under half of all ideas on Kickstarter get funding and so far since its launch on April 28, 2009 $ 1.5 billion has been pledged by more than 8 million people, have financed more than 80,000 creative projects.
Another crowdfunding site is Kiva.com, which allows people to finance loans to entrepreneurs in increments of $ 25 or more. Again, people do not do it to earn interest. All they do is help entrepreneurs start, and it is assumed that more than half a million people have received money from Kiva, which claims a repayment rate of 99%.
MicroPlace.com is a similar site where you can support entrepreneurs from around the world, such people can be financed in Spain, Colombia, Chile, Ecuador, Mexico, Dominican Republic, Peru, Panama, Argentina, Ecuador, Uruguay, Paraguay , Guatemala, El Salvador, etc. But unlike Kiva, actually wins something nominal interest rate of your investment. MicroPlace claims a recovery rate of 98%. Another popular site is IndieGoGo.com.
If you have a business idea and the bank has no interest in you or your idea, try these options. There may be money out there to make your idea come alive.
A one-stop shop for traders and entrepreneurs online
If you are a trader who works specifically on the Internet, there is a new beginning which is in the business of making loans only for e-sellers like you. They are not interested in lending to firms brick and mortar traditional operations, only lend themselves to online merchants.
With a new site called Kabbage.com, the application process is so quick and easy, within 10 minutes after completing the online application, you could have the money in your bank account! Kabbage that evaluated based on the observation of what you are doing in your online business, transaction history, degree of user feedback and even play and participation in social media.
You make the request and, if approved, the money is issued via PayPal within minutes. One caveat, however: The interest rate for loans Kabbage.com are between 10 and 18 percent.
Again, this is another option to get money for your business at a time when banks refuse to help.
If you have a business idea and can not seem to get the funds from a bank, there are many alternatives you can try. At present there are only available sites (P2P) lending sites traditional peer-to-peer, but now some places are being transformed into something new called "crowdfunding".
Basics of P2P loans
We step back and start with the basics. P2P lending is a way to exclude out of the equation banks. This allows people to go online to borrow money directly to each other. For example we have to Prosper, Comunitae, Lendico is that it is one of the leading companies in this field. Then follows LendingClub.
Here's how it works P2P loans for a potential borrower: You agree to a credit check and reveals his state of between debt and income. Based on this information, it is assigned what amounts to a credit risk score. Considering the score, it is assigned a letter grade (AA E) and an APR according to credit risk you pose to potential lenders.
P2P lenders, protect their interests by buying multiple small loans, rather than pour everything into one big loan. That way if any borrower fails to pay, a lender only loses a fraction of their money, not the entire amount.
At first P2P lending they did not set high enough on who could borrow and do not adequately inform investors (lenders) on the level of risk involved standards. So the business model did not work. Now things have changed, standards have become more refined and more sophisticated.
It has reached the point where Prosper says that the average yield obtained by lenders after expenses, about 10%.
The P2P model evolves crowdfunding
Now, the basic idea of P2P lending is undergoing a change. USA They have come to the fore new they do what is called crowdfunding. With crowdfunding, a borrower receives the money only if enough people agree to put small amounts of investment. If you do not get 100% financing for a potential project, no money is not obtained at all.
One of the highlights is Kickstarter.com crowdfunding sites. Even if someone could lend money in a traditional P2P site and earn a good return on investment, this is not typically the motivation for people making borrowing money on a site like Kickstarter. Kickstarter user does nothing more than help entrepreneurs and entrepreneurs when they have a creative business idea.
There are reports that just under half of all ideas on Kickstarter get funding and so far since its launch on April 28, 2009 $ 1.5 billion has been pledged by more than 8 million people, have financed more than 80,000 creative projects.
Another crowdfunding site is Kiva.com, which allows people to finance loans to entrepreneurs in increments of $ 25 or more. Again, people do not do it to earn interest. All they do is help entrepreneurs start, and it is assumed that more than half a million people have received money from Kiva, which claims a repayment rate of 99%.
MicroPlace.com is a similar site where you can support entrepreneurs from around the world, such people can be financed in Spain, Colombia, Chile, Ecuador, Mexico, Dominican Republic, Peru, Panama, Argentina, Ecuador, Uruguay, Paraguay , Guatemala, El Salvador, etc. But unlike Kiva, actually wins something nominal interest rate of your investment. MicroPlace claims a recovery rate of 98%. Another popular site is IndieGoGo.com.
If you have a business idea and the bank has no interest in you or your idea, try these options. There may be money out there to make your idea come alive.
A one-stop shop for traders and entrepreneurs online
If you are a trader who works specifically on the Internet, there is a new beginning which is in the business of making loans only for e-sellers like you. They are not interested in lending to firms brick and mortar traditional operations, only lend themselves to online merchants.
With a new site called Kabbage.com, the application process is so quick and easy, within 10 minutes after completing the online application, you could have the money in your bank account! Kabbage that evaluated based on the observation of what you are doing in your online business, transaction history, degree of user feedback and even play and participation in social media.
You make the request and, if approved, the money is issued via PayPal within minutes. One caveat, however: The interest rate for loans Kabbage.com are between 10 and 18 percent.
Again, this is another option to get money for your business at a time when banks refuse to help.