Crowdlending

Crowdlending

platform software

Crowdlending is the future of loans. It connects borrowers and lenders without needless intermediaries. Take control and allow your clients to originate and finance loans in a flexible and transparent financing process.

Crowdlending is growing rapidly

Crowdlending is a loan-based crowdfunding, a way to secure loans through an online platform. It is also known as: peer-to-peer lending (P2P), loan-based crowdfunding or social lending.

More and more lenders and borrowers choose it over traditional banking services. Small businesses often have trouble securing the traditional loans they need to grow, while IT entrepreneurs see crowdlending platforms as a good future investment.
Benefits with crowdlending:

  • Direct connections between lenders and borrowers
  • Lower interest rates for borrowers
  • Higher returns for lenders
  • Less practical and legal issues
  • Transparent loan process

How does crowdlending work?

Crowdlending bypasses banks and credit institutions. Having no intermediaries means fewer fees, higher returns and lower interest rates. Investors get together to directly finance a loan through an online crowdlending platform.

Crowdlending Platform

Crowdlending platforms make money through fees. These fees are still significantly smaller than what traditional banks are charging. Interest rate from banks are often very high. Not to mention that many small businesses get their loan applications rejected. A crowdlending platform is a chance for them to find investors that believe in their business idea.

risk-gain-crowdlending

Crowdlending is a balance between risk and gain. Some prefer low risk and low gain, while others prefer high risks/gains or something in between.

Choosing the best crowdlending software

Developing a great platform is not easy. A crowdlending platform is a software that requires extensive financial knowledge, complex calculations and user-friendly features. When a borrower or lender chooses a crowdlending platform, the decision is usually based on several factors. Investment strategy, currency and geographical diversity are some of the central factors. Many crowdlending platforms are also tailored for specific niches or target groups. No matter the users, a crowdlending platform needs to be functional and easy to use. At the same time it is also a complex FinTech solution that delivers advanced calculations.

If you are looking to create a new crowdlending platform, you have arrived at the right address. We work with different types of customers, mostly within construction and energy, but there are also other types of businesses that have chosen us as their crowdlending platform vendor. These experiences mean that our crowdlending platform is highly customizable.

What makes a crowdlending platform good?

A crowdlending platform is a complex FinTech system. Platform need to load quickly on both desktop and mobile. It also needs to be readily available, without disruptions like installation and upgrade processes. A good way to avoid this and make a platform available at all times is using cloud-based SaaS (Software as a Service) solution.

Complexity of Crowdlending

There are many features that can make a platform easier to use. Direct cost and return estimations are an appreciated function in most FinTech systems. Another is easy payments and reporting. On quality platform all this is tied together on an interactive dashboard.

STAGE11 crowdlending software

Some main features available on our crowdlending platform:

  • The integrated Loan Management System (LMS)
  • Electronic, real-time contract generation
  • Interactive dashboards for both borrowers and investors
  • Cross border investments
  • Tools for customer due diligence (KYC, Know Your Customer)
  • Electronic-ID verification and sign-off
  • Multi-currency payments
  • Open API connectivity
  • Automated tax reporting (RegTech)

Loan origination – with or without?

Most of the major Crowdlending platforms available on the market deal with funding of existing bank loans. After financing your loan through crowdlending - and paying it back to the bank - you can still make a profit, since crowdlending usually has lower interest rate.

Our flexible Stage11 Crowdlending platform offers both options: with or without creating loans (Loan origination). When you choose the Loan origination, our system creates and administrates everything in relation to customer's loan. It supports you with things like online risk management, loan setup, calculating repayments, reporting, and more.

Having your own loan origination is good, since the platform owner gets to keep all the profits from the loan (instead of the bank), and also gets the possibility to set interest rates and other terms. In this case, the banks are only used to execute transactions – they have no impact on the financing process. The downside is that Loan origination requires more administration, but since most of the steps in this process are fully automated in our system, it can be very profitable to choose the full Loan origination package.

SaaS-crowdlending

Cloud-based SaaS (Software as a Service)

Using a cloud-based SaaS solution means several advantages, the main one is that your 'time to market' (TTM) can be greatly reduced. But that's not the only upside. A cloud-based application means that you don't need to use time for local installations and upgrades. Integration and scalability are two other advantages. It's also very easy to access a cloud-based application on the fly, wherever you have access to the internet. Cloud-based SaaS solution also means that you only pay for using the service, not full ownership of the platform. Installation and initial customization is a one-time cost. Ongoing maintenance will be presented as a recurring monthly fee as long as you are using the platform.

White label crowdlending platform

Our crowdlending platform and other FinTech solutions are all white label products. This means that you are free to brand the platform as your own. You can increase your brand visibility while reaping the benefits of our software expertise.

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