ro fr
universul juridic magazin

Crowdlending – an alternative to banking

Online platforms have come to be used as alternative channels for raising funds. Projects are presented on internet platforms to attract investors who seek a return without the involvement of an intermediary. Peer-to-peer finance has its origins in lending clubs where borrowers arranged a loan at lower cost. Peer-to-peer lending, loan-based crowdfunding or crowdlending has evolved into complicated financing models whereby smaller and medium-sized companies, including start-ups benefit from a secondary market for securities and loans. This will paper will survey the law and economics of crowdlending scenarios. It will then assess current private contracting concepts before it portrays regulatory patterns on crowdlending in the EU, the UK, Germany, France and the US. A section on auto-bidding and the potential of blockchain technology for online lending without intermediaries concludes.