Peer To Peer Lending (crowdfunding) Flashcards
1
Q
What is crowdfunding
A
Small businesses and individuals raise money from investors (the crowd) investing small amounts into the business
2
Q
Two common types of crowdfunding are
A
Loan based crowdfunding
Investment based crowdfunding
3
Q
Loan based crowdfunding
A
Also known as peer to peer lending
Lend money to individuals or to a business in exchange for interest rates
4
Q
Investment based crowdfunding
A
You invest in a company and get a stake in the business often as shares and someone’s perks, discounts on the company’s products or service
