Debt investment lending is a way to raise money, awareness, and support for a project or a business from the people around you. It’s all about how you persuade each individual to give you a small donation or capital for your project or idea.
Debt investment lending allows people with great ideas but lack of financing to raise the money they need to turn their initiatives into reality. In return, the donors and investors will get rewarded.
There are 4 different ways for a business to raise funds: (1) rewards-based, (2) donation-based, (3) equity-based and (4) debt investment lending.
So what type of debt investment lending does Funding Societies do?
We are a debt investment lending platform. Investors are also called lenders, and they will individually invest some money into an SME via a platform like ours. This form of lending is open to more than one investor as long as the target investment is filled. Our platform, as a go-between, will facilitate an SME with their requested financing. This lending business model tends to be favourable to SMEs and other small businesses, as the process is fast, simple, accessible, and online based – SMEs often need quick capital. With the funds, an SME can grow its business. Meanwhile, an investor gets repayment plus interest over time.