How does Crowdfunding Differ so you’re able to P2P Credit?

People lump crowdfunding and you may fellow-to-peer financing with her, but there is however a significant distinction between these two variety of providers financing

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Crowdfunding and you may fellow-to-peer lending are considered to be one to in addition to exact same, and it is easy to understand why: they both encompass someone coming with her to add money getting anything. Actually, yet not, he’s different monsters.

What is crowdfunding?

One reason why why some one mistake crowdfunding having fellow-to-peer lending is the fact that phrase crowdfunding’ is sometimes utilized once the a capture-all the term for various financial situations. Into the purposes of this post, we are going to be utilizing crowdfunding to refer so you can several certain variety of finance: guarantee crowdfunding and you can reward-built crowdfunding. (altro…)