Productive Microcredit – Many of us, at some point, had to borrow money from friends or family at least once before asking a bank or financier. This is because it is faster, does not require collateral and often, the “loan with friends and relatives” comes with zero interest rate.
In productive microcredit or peer-to-peer (P2P) collective financing is somewhat similar but happens on a much larger scale, the difference is that lenders really are not your friends or relatives. And although the loans are not interest-free, the interest rate applied on operations in general is lower than that charged by other creditors.
While P2P financing is not yet a fever here in Brazil – for now small business – in other parts of the world, the mode contests almost on an equal footing with the conventional online personal loan.
What is Productive Microcredit?
The name itself says it all, micro credit, is for entrepreneurs with small businesses or companies. With productive microcredit your business gains the wind and money to buy materials, equipment or make improvements in the workplace. The interest rate on this loan is one of the best practiced.
The productive microcredit is ideal for formal, informal entrepreneurs and individual entrepreneurs who need amounts between R $ 300.00 and can reach up to R $ 15 thousand according to the need and evolution of the enterprise. In general the term is between 03 to 24 months, it is worth mentioning that the first hiring the term is up to 12 months for reimbursement.
What is Collective Financing?
Refers to unsecured loans granted on online credit platforms, there is usually no involvement of a bank or financial company. In a bank, it uses deposits and reserves to lend people money and companies, in a P2P lender, simply puts investors and borrowers together on a web platform through the site’s or credit application so that they can negotiate one with the other the terms of the loan requested.
We can call alternative financing between people. In Lending Lending P2P lenders and borrowers must register on the platform and go through a verification and evaluation process. In this credit model, the P2P lender relies on information from outside credit agencies and their own analysis to assess and qualify borrowers.
Why should I care to know about p2p?
If you own a small business or business and want money to proceed, there are not many offers available to raise microcredit, working capital or financing for businesses, therefore, collective financing is an alternative way with low cost to get quick and cheap money .
Here’s a list of 12 ways to raise capital for companies, and we’ve also listed the top 12 online credit companies available on websites, applications and online platforms.
So if you want to start a profitable business or increase your money capital for your small business or for some personal need but have no guarantee, considering a P2P lending platform is a great idea.
P2P for negative people or companies
It may not even make sense at first, but if you are a small borrower with bad credit problems, that is, you are denied with dirty and restricted CNPJ or CNPJ, many platforms ignore this fact and do not consult with Serasa and SPC.
For those with problems with CPF or CNPJ, check out the 21 credit options for negatives for both individuals and companies
Conclusion: microcredit X collective financing
In general, productive microcredit is done by banks and a bit more bureaucratic for approval, except for Microcredit from Bolsa Família, and with collective financing being funded by investors, the conditions are more favorable.
Investors of P2P loans
Now if you are an investor and are being tempted by the high returns that P2P lending platforms offer, remember that this is a risky type of investment, be considerate and diversify your loan portfolio. Good luck!