Community credit is currently very popular. It is dedicated to businesses as well as individuals. Without the need to go through the banking system, we must know the provisions and rules.
The merits of Community credit
Crowdfunding is born of the inequality of some people before the traditional banking system.
Their difficulty in accessing credit favored the birth of other alternatives.
The reasons why they can not go through the traditional process are diverse:
- posted banking
- without fixed income
- need minimal sums
- SME financing
- lack of guarantees, etc.
For all these reasons, crowdfunding has been created. Its creation helps to bypass the banks and to avoid a process considered disabling and cumbersome.
The criteria for Community funding
Community funding can take many forms. We come from overseas, it has a vocation for sustainable financing, solidarity and responsibility. Called commonly crowdfunding, it is also known in the form of loan from individual to individual.
Also, in the area of entrepreneurship, community credit can be compared to a collaborative means. It will therefore appear as a co-financing, a participation or a sponsorship free or with consideration.
Although a manuscript and similar to a conventional contract, the contract between the two parties can be written with or without formalism. Especially for small loans, we can do without a notarial act and settle for a debt recognition.
Formerly flexible, with the action of the Business Angels, conditions and terms remained under their free will. Their participation was also much more active with a transmission of know-how.
The terms of Community credit are very similar to those of conventional credit. Monthly payments, duration of loan, interest rate, loan insurance and expenses characterize it.
Community credit online
The intermediary sites of financing exist in large numbers. With or without specialization, these crowdfunding platforms have multiplied. Their registration and commitment forms are complete and downloadable.
Community credit actors, these platforms work with security tags. They govern the arrangements between borrowers and lenders. On the one hand, investors / lenders find their interests and on the other hand, entrepreneurs get the desired financing for their project.
In charge of selecting and implementing the financial package, they apply their own eligibility criteria. The project under review should refer to sustainable and responsible development. Supporting documents are requested to determine the profile of the borrower.
Solidarity funds can come from many sources. This collection of sums can be made available by individuals. Or brought together by brokers, these online community credits work like conventional credits.
The latest research:
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