Crowdlending platform for SMEs
Innovation introduced in 2017
Institutions that have implemented the product/service: More than 300 companies. You can see the cases here: https://colectual.com/proyectos-inversion/
MSMEs served: Spain
Challenges
To reduce the dependence of Spanish SMEs on the monopoly of banks, and to offer individual investors a new financial product where they can make their savings profitable.Primary target
Which group does your product/service primarily target?
Savings
SMEs
Other (Please specify)
Specify
SME’s Credit
Description of Innovation
1 - Create a financing market for SMEs in addition to the banking market.2 - Allow individual and professional investors to learn about projects and decide which ones to finance, diversifying their investments and obtaining a higher return on their savings than other fixed-income products.
Online platform where SMEs can borrow money for their projects and investors can fund them.
Results
It is the biggest revolution in business lending since the Middle Ages:- There is no longer a banker to be examined. The SME is examined by a community of investors and if it does not convince them, the project does not go ahead.
- Individual investors are the ones who decide where their money goes, they do not blindly hand it over to a bank to manage.
Intermediation costs are reduced for both. Credit is necessary for SMEs, but banks are not.