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Before a decade or more, crowdfunding and you may fellow-to-fellow (P2P) lending are fashionable a method to financing your enterprise.
However, when you are one another crowdfunding and you will peer-to-peer credit cover other people providing you currency, he’s got certain larger differences?including the means you get that money and your obligations once bringing it. So crowdfunding might work most readily useful for your needs than P2P credit, or the other way around.
Either way, we are able to make it easier to pick it up. We’ll establish just what crowdfunding and P2P lending have in common, exactly why are her or him some other, and how to choose which suits you.
Crowdfunding and you may P2P financing 101
However, earliest, what’s crowdfunding and you will P2P credit? To begin, let’s make sure we’re for a passing fancy page on which these small company financing choice actually are.
What is crowdfunding?
Crowdfunding are, much like it sounds such as for example, raising money from a number of people. Always, the individuals give you profit change for some sorts of payment.
Many crowdfunding networks can be found and come up with this process easy. Maybe you have heard of popular of those instance Kickstarter, GoFundMe, and Patreon. However, discover crowdfunding sites for all version of niche need. For example, iFundWomen specifically also provides crowdfunding to own (your suspected it) women-possessed organizations.
Together with some other networks, there are even different types of crowdfunding. Generally, crowdfunding gets classified because of the particular settlement.
When you find yourself giving backers points, merchandise, or recognition, which is prize crowdfunding. Sigue leyendo Crowdfunding compared to. Peer-to-Peer Financing: And this Financing Solution Are working Much better?
