Crowdlending, what is it exactly?
Publiée le 1 July 2017

In the crowdfunding sector, a new niche has grown these past couple of years: crowdlending. This concept is what Solylend is based around. But to make sure it's completely understood, we should explain it to you.

Context of participative financing

Participative financing or crowdfunding has been developing for a few years thanks to digitalisation. Back in the day, monuments, like the Statue of Liberty and the Sagrada Familia in Barcelona, had access to participative financing but it's really through internet that crowdfunding established its own sector with platforms like KissKissBankBank, Ulule or My Major Company to cite the most popular.

In France, participative financing, through a crowdlending model, is governed by banking and financial law. A ruling was also carried out and put into place the 1st of October 2014, an ordinance that defines this activity by law, and therefore gives you, the lenders, rights, especially the right to know what is happening with your money.

Crowdlending, what is it?  

Crowdlending is obviously a combined word: crowd meaning a group of individuals and lending being the fact to lend. Strictly speaking, crowdlending is, therefore, to make a loan through a group of individual people.

In practice, crowdlending is a form of participative loans. Here, we're talking about a person lending money to a company, mostly through short term loans and/or small amounts of money (micro-loans). As defined by, crowdlending is a term financially linked to the internet, because it directly links to participative lending websites like Solylend.

How does it work?

At Solylend, you lend a sum of money that we give you back with  interest, similar to a bank loan. This loan will then be invested into the project of your choice, then you're able to follow its development, as well as what is precisely being done with your money, thanks to blockchain.

Moreover, you can make your savings useful, all the while making sure it bears fruit. Your savings could help regions, where energy and water infrastructures, as well as access to education, are more than ever before a necessity. You now know what crowdlending is, all that's left to do is to get into action on Solylend!