How crowdlending works? – First loan


Get an overview of how crowdlending works here. With our new graphics, you can easily and quickly be presented with crowd management and how this differs from a classic bank loan.

Crowdlending is becoming more and more popular in Denmark. And there’s a good reason for that. This is a really advantageous way for both the lender and the borrower to borrow and finance new projects.

Crowdlending step by step

Particularly after the financial crisis, it could be difficult for individuals and businesses to take out loans in the bank for the smaller but not least important projects. Therefore, in the wake of the crisis, crowdlending emerged in Denmark as an alternative form of financing. It has given many companies air to expand and develop the business. And it has allowed private individuals to realize their future plans.

As a borrower, you must first set up on a crowdlending platform. The platform then performs a credit rating, often in collaboration with RKI and SKAT, to assess whether you are creditworthy. If you are, your loan application will be approved and uploaded to the platform. After that, the lenders can see and read your loan application and decide how much they will contribute.

In other words, this is a groundbreaking form of financing that breaks the framework of how we, as individuals, can help each other in financial situations. It is thus part of the wave we are seeing in society today, with the sharing economy becoming more and more popular.

Why crowdlending?

Why crowdlending?

People who are fascinated by crowdlending may have a particular interest in a unique industry or they would like to help exciting projects come true. With crowdlending, it is possible for private investors to support special cases that are close to their hearts. For example, you can imagine that someone in your circle of people needs capital to start a new project. With crowdlending, you can support him or her without having to blend finances into the relationship.

If you are new to the investment world and would like to try simple investments that provide a safe return, crowdlending may be the right place to start. Creating as a lender on a crowdlending platform is easy and simple. The process then is also simple and can be taken in small steps.

The crowdlending platform you are interested

The crowdlending platform you are interested

Please note that the crowdlending platform you are interested in must be approved by the Danish Financial Supervisory Authority and classified as an approved payment service. This means that the platform is subject to supervision by the Danish Financial Supervisory Authority and therefore must comply with various requirements regarding security, capital and money laundering measures. That way, you are best assured.

Have you never invested before? It can seem like a difficult task to understand the benefits and drawbacks of crowdlending. That is why we have here linked together with the most important information. Following this guide, you will be ready to set up your first loan as a borrower or invest in your first loan as a lender.

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