The banking landscape is currently undergoing a transformation in that more and more consumers do not necessarily visit a financial institution or apply for a loan on its website on the internet when it comes to financing. Instead, it is increasingly the so-called flock loans, which are also awarded via the Internet, but by individuals and not banks. These loans are handled through credit platforms, such as creditend.
With such loans from the Internet, which are given by private individuals, consumers often wonder who can actually benefit from these financing solutions, ie for whom loans are suitable via an Internet platform. In principle, every customer can, in principle, apply for a loan there, which would be done at a bank. Thus, there are no serious restrictions on the possible borrowers. In practice, however, it is often the case that such loan platforms are particularly suitable for consumers who have not been loaned to the ordinary bank due to their lack of creditworthiness. But smaller and medium-sized companies are also increasingly making use of such swarm financing, which incidentally has become widely known as crowdfunding.
Further information about the so-called swarm loan
The basic difference between crowdfunding and a bank loan is the fact that the floating loan is a loan given out by private individuals. Otherwise, there are no major differences, because as with the bank loan borrowers pay course synonymous with the Schwarmfinanzierung interest and possibly fees, apart of course from the already to be carried out loan repayment.
Which financing amounts are possible?
What is the amount that credit seekers can borrow via an internet platform such as creditend depends on the platform and its conditions. If we stay with the example creditend, then the upper limit for private persons lies with 25,000 euro, while smaller and medium-sized enterprises can collect still somewhat higher loan amounts. An important question certainly is how the loan is given in practice. First of all, every customer, whether lender or borrower, must register with the appropriate Internet platform. For credit seekers, the personal credit rating is usually also checked, so that some information is to be made, such as the person, the income and a credit bureau information is often obtained.
This in turn results in the fact that with Internet platforms by no means every applicant receives a loan. This is usually ensured by the respective operator of the platform, even if this then has nothing to do with the actual lending. Of course, the portals would like to ensure, of course, that private investors can assume with a relatively high degree of certainty that they will receive back their lent capital, along with interest. Overall, the swiss loan thus represents a good financing solution for more and more clients, so that in the future it will increasingly become a real alternative to bank credit.