Looking for loans on the Internet and looking for private investors can have several reasons. This often happens because of poor credit ratings or because you want to avoid the burden of high interest rates, as they are currently in consumer loans or discretionary loans on the agenda. Especially entrepreneurs or company founders have a hard time with banks, because banks generally lend only higher sums, because otherwise the testing costs would not be worthwhile. Especially for company founders who only need a small start-up financing, this is often a problem.
In addition to classic lenders, such as banks, there have been other models offered over the Internet for some time now. In these models, private individuals act as lenders who use these models as an investment opportunity. Placement platforms can be used to set up a project, whether private or commercial, and there is a kind of auction in which the donors can participate. With a little persuasion and luck, you can win enough financiers for your project or one who invests the whole sum. For many it is interesting and important that the whole thing without a credit check is going on. The decisive criterion is the project and the interest offered in the auction. Often, these projects are forms of debt rescheduling, where money is used to pay off expensive loans, purchases and investments, or repairs and renovations that need to be done.
In addition, this is especially interesting for entrepreneurs or company founders, there are various ways to borrow money from private investors. One possibility is private equity funds, which raise capital from investors and make it available on a loan basis. Another possibility is in the form of equity investments and so-called mezzanine financing. Even so-called business angels can be found on the Internet, investing in a company or in a trade.