Marketplace lending is another great FinTech advancement that is opening the door for many businesses that are not able to secure traditional methods of financing. The advancement in FinTech banks are losing their competitive advantage, opening the door for new methods of lending.
Simply put Marketplace lending matches borrowers with lenders, it is a very similar process to Peer to Peer lending. Marketplaces lending uses online platforms to connect individuals and businesses to each other for financial support and investment. Once a loan has been agreed, the marketplace platform will collect payments and interest from the borrower, these will then be passed to the lender minus any fees.
There are many advantages to marketplace lending including:
As with all methods of financing there are some disadvantages and risks:
Marketplace lending is a good option for businesses who are not eligible for traditional methods of financing or have previously been rejected for traditional business and commercial loans. It is also a good option for businesses who require fast decisions on loan applications to resolve cash flow issues.
It is important to note that marketplace lending is not currently available in the UK, if this changes we will update this page.
At CreditOnline we can offer a range of support from quick and seamless integration into your system by using a team of professionals who will make the transition effortless. Once the system is up and running we offer different types of support packages whether its in running the software, any questions that may arise on the way or any faults or errors that may appear. Our response times are lightning fast and we strive to lead in the industry.
We also offer training sessions for employees learning to navigate the system and a wide selection of modules that can be implemented for ease of use.
Our modular software allows itself to be moved around and fitted exactly to your company needs. Whether it's API integration or a simple change in the administration menu. We’ve got you covered!
Our system boasts of secondary market capabilities. When a client invests in a project he will have the ability to get his investment back sooner by using our simple or advanced secondary markets.
When accessing the secondary market, clients will have the option to sell their current investments for less than the market value getting their money back quicker and without waiting out the agreed period.