We are able to lend money to people or companies and obtain a positive return in return. In this blog all of us tell you how to lend to businesses and earn money.
Now that term deposits provide an interest close to 0% plus having the money stopped within an account also does not provide profitability, it is convenient to consider investment alternatives to obtain a stunning return on savings.
A very interesting choice is to lend money straight to companies that have been previously examined and obtain a good return in exchange. We tell you in this weblog different options to do it and how to get it done, advantages, deadlines.
Ways to lend money to some company
There are several methods to lend money to a corporation, everything will depend on the goals you have when performing this process. We tell you several strategies that can be used today to give money to a company.
Companies that use this approach to obtain financing tend to have interpersonal, artistic or similar reasons… Through crowdfunding platforms we are able to lend money to businesses in two modalities:
- Donations: People who wish to lend their cash to companies through contributions will receive nothing in exchange.
- Reward: Via this modality, the one who seem to lends his money gets a reward that is not usually financial. For example , if it is a vocalist who requests an amount of cash to record his brand new album, a very common incentive would be to give a copy from it (once recorded) to traders who have lent a certain amount of cash, or the album and a live concert ticket if you have lent a bigger amount, for example. That is, various rewards are usually offered based on the tranche of money you provide.
This is a method of lending money in that the investor does not lend this strictly, but invests within the capital of the company that will give him the future right to obtain dividends.
Give money in loans or invoice discounting to companies through crowdlending
Through crowdlending, people can lend their cash directly to previously analyzed businesses.
Good Financial is a crowdlending access website through which private investors as well as other companies lend their cash to companies through financial loans and factoring.
- Lend money upon loans: Through loans, the particular investor can lend their money from a period of six months to 5 years along with returns through monthly installments usually. Through Good Finance, you are able to choose whether to give your money in a guaranteed method or with high success and measured risk, which is, you can choose the type of financial loans in which you want to participate, even though of course you can do both. We all tell you later the differences together.
- Lending profit factoring: Through factoring, businesses can advance the variety of their bills that delay to their debtors thanks to traders who lend them their own money. At the expiration from the invoice debtors pay straight to Good Finance, who profits the money to the investors that have participated. In this case the come back for both capital plus interest is made at maturation that on average is ninety days.
Beneath we explain in more fine detail the differences between the two items, but first, let’s see what sort of loans you can lend your cash to companies through Great Finance.
Give money to companies along with collateral
Through Great Finance you can lend your hard earned money to companies in an assured way. In guaranteed purchases, Reciprocal Guarantee Companies are the ones that provide the guarantee in the procedure in case of default.
The Bank of Spain identifies the operations that have this particular guarantee as “ Simply no appreciable risk” operations.
Learn more about the security of the types of investments here.
These types of safe purchases will only be found through Great Finance. In them you will get the 2% guaranteed return to recuperate in an average period of three years with a refund in time to time installments of capital and attention.
Lend cash to companies with higher profitability
On the other hand, within Good Finance you will also discover investments with high success and measured risk. Within them, the operation is categorized with a rating and based on it, a profitability yet another is offered depending on the risk from the operation, at lower danger, lower profitability and the upper chances, higher profitability.
The profitability is among 4 and 7% each year and the terms between twelve and 18 months with pay back in monthly installments of funds and interest.