Crowdlending: Saving directly in French SMEs – Paid Loans

Since 2014, banks’ monopoly on paid loans no longer exists. Every French can now lend his money directly to the companies of his choice and receive interest.

Investing in the real economy is the satisfaction of allowing jobs to be created and companies to develop innovative services while boosting their savings.

2.6 million French people are already convinced

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Crowdfunding started in France at the end of the 2000s. Accompanied by different policies and legislation, it has since developed in France in various forms: the gift for donation, the loan at a rate 0, paid loan, capital investment or royalties. Since 2013, the amounts collected have almost doubled each year, on ever more numerous platforms.

Between 2015 and 2016, the amount collected increased from 166.8 million USD to 233.8 million *. Since the beginning of crowdfunding, public interest has only grown. In January 2017, 2.6 million French · es had already given, lent or invested in a project of this type. In fact, the business-to-business lending sector accounts for a significant portion of this growth, as in 2016, loans totaled $ 83 million, compared with $ 31.5 million the previous year.

Finance the loans of our small businesses

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For businesses, borrowing from individuals has many advantages: communication effect around its activity, federation of a community, credit without guarantee or guarantee, unrivaled speed (on average 10 days of collection time) … For individuals, Participatory loans make it possible to choose directly the projects in which to invest and thus, to know where is placed every cent of its savings.

The same month, the French can invest there, between 20 and 2,000 USD per project, in a photovoltaic panels company, a law firm and an Italian restaurant. Projects are rigorously selected by financial analysts according to specific criteria.

For the entrepreneur

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The model demands transparency and exemplarity. He will have to disclose his accounts, his history, his business plan but also keep in touch with his lenders after the collection to inform them of the evolution of his projects as well as the state of health of his company.

In exchange for loans – and depending on the risk taken – individuals receive interest each month, from 3.5 to 10.5% gross annual. Beyond this rate, these platforms really allow the French to regain control over their money and above all, to give it a real meaning!

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