Crowdlending and crowdfunding are two models of crowdfunding, that fall within the scope of crowdsourcing which, in turn, is the process of obtaining ideas, solutions or contributions from a large group of people, usually through online platforms, through collective and collaborative participation of individuals, which can be applied in various contexts, including crowdfunding.
Crowdlending: In crowdlending, several people or institutions invest money in business projects by granting loans. Investors lend money directly to borrowers, usually through online platforms. Borrowers must repay the money with interest over time. Crowdlending involves a creditor-debtor relationship between investors and borrowers.
Crowdfunding: In crowdfunding, several people invest money in projects, ideas or causes, but without the direct expectation of financial repayment. Investors contribute resources (including money, but not only) to support a cause, a project, the development of a product, among others. In return, investors often receive equity or non-financial rewards, such as exclusive products or recognition.
Therefore, the main difference between crowdlending and crowdfunding is in the nature of the investment: crowdlending involves loans with an expectation of financial return in the form of interest, while crowdfunding involves contributions to projects without a direct expectation of financial return.
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