Collective loan, what is it? Worth it?

Through collective lending, small and medium-sized companies find it easier to obtain credit that is more viable and geared to their needs – in addition to more chances of standing out in the market and increasing their competitiveness.

With new technologies, new ways of getting a loan and leveraging your business are emerging. One is the collective loan – peer-to-peer lending (P2P) or crowdfunding – which presents itself as an alternative to bureaucratic bank loans, taking advantage of the advantages of the hyperconnected era in which we live.

Through it, micro, small and medium-sized companies, which would normally face difficulties in obtaining credit approved by banks, increase the chances of obtaining the necessary resources to make projects feasible and even expand the business. Consequently, they also increase their competitiveness and stand out in the market.

The collective loan, being innovative and relatively new, may generate distrust at first. However, the emergence of platforms that act as intermediaries gives this modality more security, reliability, organization, and effectiveness.

Collective lending is a new way to make money investment possible


Collective lending is a new way to make money investment possible for commercial or individual projects, without the presence of banks or financial institutions. It is made from person to person – peer to peer.

As there are no banks or financial institutions during the process, therefore, it is less bureaucratic. That is, in addition to obtaining credit with fewer formalities, it also allows several people to offer different amounts until reaching the amount requested by the entrepreneur. For this reason, it is called collective, since the loan amount will not always come only from an investor.

In this model, the relationship occurs directly between investors and entrepreneurs. In it, entrepreneurs are those who resort to collective loans to obtain capital with rates and interest charged significantly lower. Investors, on the other hand, seek to achieve good returns and contribute to the development of the country through projects with which they identify.

The collective loan can be used for fixed investment


For new entrepreneurs, the collective loan can be used for fixed investment, working capital, purchase of assets, the anticipation of revenues and other expenses necessary for a company to start operating. For entrepreneurs who already have a business in progress, it is ideal for expanding the company or financing new projects.

In addition to supporting the productive credit of individual entrepreneurs, micro, small and medium-sized enterprises, the collective loan can also be used for other purposes. For example, acquisition of equipment, expansion of infrastructure and debt settlement.

Despite the facilities for the approval of credit, it is necessary that the entrepreneur has adequate financial behavior and the purpose of the money is very clear and well justified. After all, applying for a working capital loan is a completely different situation than who wants to use it to pay off debts.

All of this, with more agility, less bureaucracy and without becoming hostage to banking institutions. Do you want to know more about how collective lending can benefit your company? Discover other benefits of this modality!

Ease and convenience to request


With the facilities of the virtual environment, the collective loan can be made online, making it automatically less bureaucratic and more efficient.

To optimize the process, choose a reliable platform, understand the bureaucracies, and separate all the necessary paperwork beforehand.

The more concrete and accurate information the company has about the project, the faster and less complicated the credit approval process will be.

Agility and better prices

When compared to bank loans, the biggest differential of collective loans is the price and agility of the process.

Collective lending platforms offer a service, on average, 60% cheaper and faster than bank loans. And that, not to mention the less bureaucratic path to be followed for the approval of the project.

More visibility for your project

If approved by the chosen platform, your project gains visibility. In addition to guaranteeing its main objective, its dissemination becomes a great marketing strategy. Impacting many people, your company gains visibility and recognition.

Therefore, the initiative also works as an indirect use of marketing funds. An open campaign on the internet in search of investors is a way to self-publicize and draw attention to your project.

Ease of disclosure

The movement to obtain collective loans started on social networks. Even on a smaller scale, this was already happening before platforms existed to formalize the processes.

However, the use of a platform designed exclusively for this purpose helps to reach a significantly larger number of people, than if it were done only through the website or through the entrepreneur’s own social networks.

But it is worth remembering that sharing the project on your social media also includes the scope of the idea and the chances of attracting investors.

Building a community around the idea

Potential investors can “follow” or “become fans” of their projects through the platform.

This allows them to interact in certain parts of the project and to participate more consistently in what they plan to invest. Thus, there is more confidence in the idea under development.

Receiving feedback during the process

The approval of your idea to obtain a collective loan depends on an evaluation of the platform. This analysis takes into account factors such as creativity, quality of the rewards offered to investors and general benefits of the action.

However, this step does not guarantee the success of the project. But once your idea is exposed, people’s impressions – and potential investors – arrive almost instantly.

As it is possible to comment on the page, interested parties can share opinions, criticisms, and suggestions. In addition to helping you to perfect the idea, this interaction can also give you a glimpse into the acceptance of your project in the market. And this, even before it is realized, which minimizes the risks when applying for the borrowed money.

Thus, the possibility of having this feedback allows you to make changes to your project to gain more support and investments.

Collaborates VS investors


The collective loan does not limit the number of investors who contribute to your project. After all, most stakeholders will not be able to contribute large amounts of money, and the goal is to achieve the goal set by the entrepreneur.

For this reason, the platforms that make this loan model viable maintain a range of investors, in which each invests what they can.

Even if you do not have a large investor, if you manage to attract the attention of several people who will contribute, little by little your goal will be achieved in the same way.

Despite the facilitators that this modality offers, before considering a loan, one must be responsible and have a plan. The key to this is good financial management and organization.

After all, not every loan is synonymous with the company going bad. If well studied and done at the right time, it can be applied to the expansion of the company or innovation in products and / or services.

So, do you know any other benefits that the collective loan can bring to entrepreneurs? Leave your comment in this post!



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