Borrowing money in the form of Crowdfunding is becoming increasingly popular. Although borrowing in the entire money market is still a very small part, the growth is impressive. And the expectation is that this will increase even faster in the coming years.
The question is of course what makes crowdfunding so popular in such a short time. Is that because there is no BKR review and registration when borrowing money through crowdfunding? Is this due to the flexible acceptance standards that these providers maintain? Or are there other reasons?
Crowdfunding and BKR
In the past it was not possible for providers of the crowdfunding loans to do a review and registration with the BKR. However, this has changed considerably in recent years. The various crowdfunding platforms have become increasingly professional. Crowdfunding and BKR now treat each other well. The crowdfunding providers with an AFM license are often affiliated with the BKR. They can therefore do a test at the BKR. And the loan that you are about to take out is also registered with the BKR. Borrowing money without BKR testing is therefore becoming increasingly difficult. Taking out a loan without BKR testing is usually not an option via Crowdfunding.
Acceptance standards for Crowdfunding
A large part of the loans are used through crowdfunding for the business loan. Yet there are also a number of projects for private individuals. We cannot find the exact acceptance guidelines immediately. We notice, however, that the crowdfunders are flexible. The chance of financing (if you have a good BKR) is therefore much greater with a crowdfunder than with a “normal bank”.
Crowdfunding and BKR and borrowing loans
Crowdfunding is mainly used for financing new projects. This seems like a missed opportunity. Many loans, mainly revolving loans, have been concluded in the past, with the banks also slowly but surely raising interest rates. If you belong to this group of consumers, it may be very wise to contact a crowdfunder to find out whether your financing can be converted more economically in this way. As with the regular revolving credit, or the personal loan, no costs will be charged when you apply for your loan. At least not with providers with an AFM license and affiliation with the BKR.
Borrow money directly and Crowdfunding
We have already informed you that borrowing money with Crowdfunding and BKR is not going well together. But what about borrowing money directly and crowdfunding? With Crowdfunding you have to take into account a long lead time between approval of your application and receiving the money. The reason for this is that your project must be “written”. This full writing can take a few days, and sometimes even a few weeks.
Borrowing direct money and crowdfunding do not go well together.