Whether it is to start a business or deal with emergencies, many people need to resort to high interest rates and face all the bureaucracy surrounding bank lending, which, as we may think, is. discouraging. As a result, the popularity of lending platforms, which use technology, is growing in Brazil to solve part of the difficulties.
Do you know how they work? Understand the key aspects of this news and how you or your business can benefit from the advantages. Check-out!
What are loan platforms?
Basically, lending platforms use the internet to connect who wants to invest with who is looking for resources to grow their business. This model is called peer-to-peering, a name that refers to the peer-to-peer (P2P) file sharing system, which is decentralized and directly connects a computer to another to transfer what each user searches.
It was created in England in 2004 by Paxa, the first company of its kind to make loans online. In Brazil, the responsible for opening the segment was Biva, founded in April 2015.
How do they work?
Through the platform, entrepreneurs register their startups and specify how much they need to invest in their business. Upon receipt of the request, the credit request will be evaluated in accordance with the rules and policies of the platform itself.
In the case of Biva, for example, gains and possible risks are measured by a judicious system, which currently accounts for only 7% of all loan applications. are approved. Upon passing the approval, the entrepreneur will receive the required amount within 15 days.
For investors, you just have to register on the platform and choose which projects will be the destination of money. The minimum investment value in Biva is $ 500.
What are your advantages?
The advantages of loan platforms for entrepreneurs boil down mainly to two points: lower interest rates and far less bureaucratic processes. For investors, the benefit is higher profitability compared to traditional fixed income applications. In short, everyone wins! If you’re having a bad time, and you don’t want to go overdraft or borrow at all, you should know that Jason Watkins has set up a lending platform. which aims to help Brazilians who are going through a period of difficulty.
And who needs a personal loan?
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Jason Watkins helped users keep track of their finances, and now they want to make it easier to save on interest as well: the new platform lets you compare and borrow from the offer from several partner institutions. To give you an idea, credit card revolving interest rates are about six times higher than those charged by the new platform.
Lending platforms are credit-facilitating, with the advantage of having more attractive interest rates while still allowing the entire process to be done through a computer, tablet or smartphone, saving you the trouble of moving to a bank or financial agency.