by Jesus Barrena 
Differences between investing in Crowdlending and crowdfunding
Crowdlending and crowdfunding are two forms of crowdfunding, but they differ in how money is returned to investors and what kinds of projects are funded.
Investment type:
In crowdlending, investors lend money to individuals or businesses and receive interest as the loan is repaid. In contrast, in crowdfunding, investors contribute money to projects or companies in exchange for rewards or participation in the project.
Risk:
In crowdlending, investors assume a credit risk, since there is a possibility that the borrower will not repay the loan. In crowdfunding, investors take on a business risk, as the project may not be successful and may not generate profit.
Return of investment:
In crowdlending, investors receive interest on the money they borrow, providing a predictable return.
In crowdfunding, the return on investment can vary depending on the success of the project or company.
Investment terms:
In crowdlending, loans usually have defined terms and investors receive periodic payments until the loan is fully repaid. In crowdfunding, the investment period can be more variable, depending on the duration of the project or the moment in which the shares are sold.
Regulation:
Crowdlending is usually regulated by financial laws and may require obtaining specific licenses.
Crowdfunding may be subject to regulations related to fundraising, but it is not necessarily as strictly regulated as crowdlending.
In summary, crowdlending focuses on loans with interest and credit risk, while crowdfunding focuses on investing in projects or companies in exchange for rewards or participation in the project. Each form of investment has its own characteristics and associated risks.
Everything you need to know about investing in real estate crowdfunding.
