7. Crowdfunding Debt Platforms
Crowdfunding debt platforms or crowdfunding debt financing channels through which companies borrow money from the crowd of multiple lenders. Some refer to it as P2P lending. Crowdfunding debt platforms might offer an alternative for companies whose access to traditional funding sources is somewhat poor.
Benefits:
• App process is not very sophisticated compared to applying for a general bank loan.
• Terms and deals on the interest rates are pretty aggressive, in general.
Limitations:
Added expense and cost will come up while using the platform added up to extra costs of borrowing.
Huge limitation will be that the amounts available are limited and hence for bigger projects, this will be lacking.