Alternative financing refers to ways of obtaining capital or financing for projects, businesses, or ventures outside of traditional financial institutions, such as banks and venture capital firms.
There are several forms of alternative financing currently available, including:
Crowdfunding: Involves raising funds from a large number of people, typically through online platforms. There are different types of crowdfunding such as crowdlending, crowdfactoring and crowdfunding.
Peer-to-peer lending: It is a model in which loans are granted directly from one person to another, without the intervention of a traditional financial intermediary such as a bank
Financing through business angels: Involves the investment of wealthy individuals (business angels) in emerging businesses or startups in exchange for shareholdings (quotas or shares) or other forms of financial return.
Venture capital funding: Venture capital firms invest in startups and early-stage companies with significant growth potential, usually in exchange for equity (quotas or shares).
Asset-based financing: Involves the use of physical assets, such as real estate or equipment, as collateral to obtain financing.
These are just a few of the many forms of alternative financing available today. These options offer entrepreneurs and individuals more options for obtaining financial resources for their projects, often presenting a more flexible and affordable alternative compared to traditional methods of financing.
