Crowdlending: Saving directly in French SMEs – Paid Loans

Since 2014, banks’ monopoly on paid loans no longer exists. Every French can now lend his money directly to the companies of his choice and receive interest.

Investing in the real economy is the satisfaction of allowing jobs to be created and companies to develop innovative services while boosting their savings.

2.6 million French people are already convinced

bank

 

Crowdfunding started in France at the end of the 2000s. Accompanied by different policies and legislation, it has since developed in France in various forms: the gift for donation, the loan at a rate 0, paid loan, capital investment or royalties. Since 2013, the amounts collected have almost doubled each year, on ever more numerous platforms.

Between 2015 and 2016, the amount collected increased from 166.8 million USD to 233.8 million *. Since the beginning of crowdfunding, public interest has only grown. In January 2017, 2.6 million French · es had already given, lent or invested in a project of this type. In fact, the business-to-business lending sector accounts for a significant portion of this growth, as in 2016, loans totaled $ 83 million, compared with $ 31.5 million the previous year.

Finance the loans of our small businesses

bank

For businesses, borrowing from individuals has many advantages: communication effect around its activity, federation of a community, credit without guarantee or guarantee, unrivaled speed (on average 10 days of collection time) … For individuals, Participatory loans make it possible to choose directly the projects in which to invest and thus, to know where is placed every cent of its savings.

The same month, the French can invest there, between 20 and 2,000 USD per project, in a photovoltaic panels company, a law firm and an Italian restaurant. Projects are rigorously selected by financial analysts according to specific criteria.

For the entrepreneur

bank

The model demands transparency and exemplarity. He will have to disclose his accounts, his history, his business plan but also keep in touch with his lenders after the collection to inform them of the evolution of his projects as well as the state of health of his company.

In exchange for loans – and depending on the risk taken – individuals receive interest each month, from 3.5 to 10.5% gross annual. Beyond this rate, these platforms really allow the French to regain control over their money and above all, to give it a real meaning!

The Spaniards go back into debt after the crisis

We Spaniards have learned an important lesson from the crisis, right? Yes, it is dangerous to live above our means. However, as they say, the ‘Spaniard stumbles twice on the same stone’, because today our level of indebtedness returns to the paths. Thus, optimism and confidence in the future encourages citizens to spend more than is saved.  

During the past 2017, households once again considered credit as a great financial alternative to finance their standard of living. In fact, at the end of the third quarter of 2017 (last available data), household debt reached 776,500 million euros and exceeded 1,700 million spent in the period of the previous year.  

In short, we are facing the first increase of the last six years and confirms that for a large part of the Spanish, Spain is doing well and, therefore, is consumed happily.

By the way, are you one of those who have already begun to spend and consume as if there was no tomorrow?

But how is citizen spending after the crisis?

quick loan

Although it is true that after the crisis, our spending is not exactly the same, and certain changes can be seen in our way of consuming. Thus, we value offers very much and we look hard for them in supermarkets. We even sacrifice some products for others that we consider of similar quality but cheaper. This is the case of sunflower oil whose sales have experienced a rebound while raising the price of olive oil. For its part, fresh fish (which has risen 6%) we have replaced it with frozen.

Comfort also decants many of our purchases. Thus, prepared dishes are sold more, as are soups and single-dose coffees, which have been growing in sales for years but may begin to lose that verve within a short time since many autonomous communities are considering banning them in a few years given their high cost for the environment given the large amount of waste it generates.

And how is our shopping cart now?

quick loan

Our cart, in addition, is filled with pasta or whole grains, vegetable milks (lose the classic ones) and squeezed juices. Palm oil begins to fall back on the ingredient list of countless products that no longer use it because consumers do not want it.  

The price matters, but not so much

We started buying organic products. In this sense, four out of ten households have bought a bio / eco product in the last year, 74% say they follow a healthy diet and 69% value the possibility of buying local products and even acknowledge their willingness to pay more. The truth is that in 2011 the only variable that mattered to the consumer was the price. Now, happily, this factor no longer weighs so much and we can consider others.

The data prepared by the Cetelem Report reveal that we have become a bit more environmentally friendly, since 21% of respondents acknowledge having in their purchases always – or almost always – criteria such as sustainability and ecology.

The second-hand market only manages to keep 20% convinced, although it is being perfected and provides excellent portals such as Percentile. com or Micolet.com, with clothes that, sometimes, still shows the label of the original store.

Food and clothing expenditure grows

During 2017, also according to the Cetelem Observatory, our average monthly food expenditure grew by 4% compared to last year and we already spent about 317 euros on average. On the other hand, the consumption in clothes has also grown, and our clothing dedicated about 505 euros per year (61% more than in 2016).

And which communities spend the most?

And which communities spend the most?

Of course, it is always possible to talk about regions where this expense is higher. Thus, according to the IESE-Barclaycard Consumption Barometer, with data by autonomous communities from the INE Family Budget Survey, the communities with the highest per capita expenditure are the Basque Country (13,313 euros), Navarra (12,599) and Madrid ( 12,558). The least spent are the Canary Islands (8,906), Extremadura (9,194) and Andalusia (9,237).  

In cash or card?

As much as the technology or our bank insists, we prefer to pay our purchases in cash. In this sense, most of the studies carried out in this regard coincide in the fact that about 84% of the transactions are made with cash and money.

An online loan for purchases or specific money needs?

Yes, the Spaniards continue to rely on credit to satisfy our way of life, given that 58% of the population comes to him to buy certain products, especially those that are related to home renovations and dental health.

It is evident that the request for a loan is sometimes very necessary to meet certain expenses that we could not otherwise assume. From our loan comparator we want to remind all our clients that on our website they can access a wide variety of online loans, compare them and, if they are convinced of their conditions, request it comfortably. Read the comments of previous users and, of course, do not forget to leave yours about your experience as you can help others make their decision.