Global fintech and funding innovation ecosystem

8 Considerations for Successful Debt Crowdfunding (Peer-to-Peer Lending)

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Calgary Herald  |  Brock Willis  May 8, 2013. 10:37 am

P2P - 8 Considerations for Successful Debt Crowdfunding (Peer-to-Peer Lending)

The crowdfunding space is heating up fast around the globe in what many are predicting will be $6 billion in generated revenues in 2013.  Equity-based crowdfunding is already in progress with investment platforms in Australia, UK, and Netherlands. The United States and Italy are currently in the process of finalizing securities regulations, while governments in a number of other countries including Canada, Sweden, India are being educated from industry associations on ways to move forward for their respective countries.

Debt-based crowdfunding, also known as peer-to-peer lending, allows a group of individual or institutional lenders to lend funds to individuals or businesses in return for interest payment on top of capital repayments. Despite being in the shadow of the Equity crowdfunding hype, this form of crowdfunding is expected to make up the bulk of crowdfunding revenues in 2013.

Below is a list of 8 considerations for successful debt crowdfunding (peer-to-peer lending):

Application Review
Platforms can put loan applications through a review process before they’re approved for public display on the system.

Lender Verification
Platforms can perform bank verification and run credit checks on potential lenders.

Platforms can allow borrowers to search loan opportunities by risk profiles and ratings according to the system or from third-party metric providers such as financial risks.

Valuation services
Platforms can publish their own valuations on loan projects being publicly displayed on their system, or on third party estimates.

Multiple Loan Types
Platforms can support multiple types of loans including monthly payment (amortized), interest only, balloon, single-payment among others.

Platforms, as one of their services, can underwrite the loans.

Tax reporting
Platforms can report investment income to the appropriate tax authorities.

Platforms can include interactive loan calculators.

Visit the National Crowdfunding Association of Canada ( to learn more about crowdfunding and how social media is impacting the way organizations are raising significant amounts of early stage seed capital and project funding.  NCFA is a cross-Canada not-profit with a mandate to be inclusive in providing education, awareness and advocacy in the rapidly evolving crowdfunding industry.  We are community-based and membership-driven entity that was formed at a grass roots level to fill a national need in the market place.

Visit Katipult ( to learn more about how you can create your own branded crowdfunding platform.

Brock Willis 150x150 - 8 Considerations for Successful Debt Crowdfunding (Peer-to-Peer Lending)

Co-founder of JOI Media, a Calgary based software development firm. Winner of the Emerging Enterprise of the Year Award in 2011, JOI Media has two industry leading software products including a Social Intranet and a white-label Crowdfunding Platform.

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