There are many methods where we can invest our money from investing in the stock market to invest in gold or debt of your own country. But in recent years it has been especially important to invest in crowdlending. In this article, you will know what is relief from creditors.
What is the investment in crowdlending?
Crowdlending is a method through which companies and individuals get financing through loans funded directly from private investors. All managed by a crowdlending platform such as MytripleA.
In exchange for lending their money, investors get attractive returns for their money while companies get the financing they need.
The request for the financing of the company is studied by the risk department of the platform and if approved, it is published in the Market section. That’s where everyone who wants can lend from € 50. Once the amount requested by the company is completed, the loan is signed and the company will return the money along with the interest generated to the investors who have participated in monthly installments.
How to start investing money in crowdlending?
Now that you know what it is, we are going to describe how to start investing through this method.
Before you start investing, identify the platform that interests you most
For this, take into account the seriousness and transparency provided by each platform. It is also important to know if the platform charges some kind of commission to investors. It will also be necessary to make sure that the platform has the necessary licenses to operate and, therefore, is within the law.
REMINDER: Law 5/2015 establishes the indispensable condition for all crowdlending platforms to have a Participatory Financing Platform License granted by the CNMV.
MytripleA has the # 3 license as a Participatory Financing Platform granted by the CNMV and is also the only one that has the Payment Institution License granted by the Bank of Spain. It does not charge anything to investors for lending their money.
To start investing you have to know the products that exist
Through crowdlending, you can invest in business loans and obtain a return. But we can find several different products, so we explain how to invest in each of them.
This type of investment is what you will find the most when investing in crowdlending. It has the following characteristics:
- The term from 1 to 5 years
- Refund through monthly installments
- Guarantee of the partners or interested parties
- Profitability of between 6 and 15% per year
This type of operations is the safest that exist when investing in crowdlending. These guaranteed investments have the following characteristics:
- 3-year term
- Refund in monthly installments
- Guarantee and guarantee of a Reciprocal Guarantee Company
- Guaranteed profitability of 2% + Euribor (if the Euribor is negative, 0% is applied)
These types of investments are only available at MytripleA so far.
Short-term investments with high profitability
This is what we call investments with high profitability and measured risk. It can resemble a factoring product. These investments have the following characteristics:
- Short term. From 1 to 12 months
- The refund can be given at expiration or through monthly installments
- You can have some type of insurance (in the case of MytripleA the operations have a credit insurance)
Sign up on the platform to start investing
If you opt for a platform like MytripleA the registration is completely free and in just a few minutes you will have completed it. From that moment you simply have to send by email, by WhatsApp or upload yourself to your profile, a photograph of your ID and another of a bank receipt.
To start investing in crowdlending you have to choose a loan or company to lend your money to
Without loans or financing requested by companies, crowdlending does not make sense. There must be companies requesting financing so that there are investors who lend their money and companies with financing needs in our country, there are many.
In the Market section, you will see the companies that have passed the risk study and are currently raising funds. In MytripleA you can choose between investments with greater profitability and measured risk or guaranteed investments.
In each application, you will find economic and financial information of the company, evolution, sector, description … and also an explanation of why you need the money. Thus, in addition, you will have the satisfaction of knowing in what your money is being used.
You simply must indicate the amount you want to invest ( you can invest from € 50 in each of the operations). As soon as the requested amount is completed, the loan is signed and you start generating profitability.
Example. A company requests € 50,000 to expand its ship with a 3-year return period with monthly installments. An investor lends € 50, another € 1,000, another € 2,500, another € 100 … so until the amount requested is completed. Therefore, there can be many investors on the same loan.
From that moment you will start receiving the fees in your MytripleA account, which contain capital and interest. Those amounts can:
- Reinvest them in other loans and thus multiply the profitability
- Keep in your MytripleA account until investing in the project that interests you
- Withdraw it to your bank account at no cost
Start investing and get the maximum benefit
The main objective will be to obtain the maximum benefit from our investments. To do this, when investing in crowdlending we must take into account the product in which it is invested and, depending on it, the diversification.
If you opt for the most profitable product and risk measured or for the product of factoring, you must take into account the importance of diversification. Taking into account the amount you want to invest in these products, divide that amount between different products and companies to minimize the risk, so your portfolio will hardly be damaged if any of the projects go into default.
If, on the other hand, you opt for guaranteed investments, diversification is not necessary to obtain higher credit quality levels since it is a guaranteed investment.
It is also important to know about this concept. Most crowdlending projects offer monthly rewards, that is, you will recover capital and interest month after month. If those amounts that you recover monthly reinvest in other loans, your profitability will be multiplied.