Investing in business loans
Investing in business loans in our platform is easy and transparent. The investor can determine the rates he is ready to lend to businesses. Fellow Finance will take commission from withdrawal and annual account handling fee from the borrowing business. The investor will get all the interest.
The business loans differ a little bit from personal loans. As an investor you have the same possibilities to diversify your investment as in peer to peer loans. You can also either manually invest to your chosen business loans or let the loan allocator choose for you within your terms and invest in 100 of loans minimizing the risks. You can also sell and purchase loan in secondary market.
Businesses usually apply for crowdfunding loans alongside with banks loans to grow business. Business loans have mainly some kind of security either real security or personal security. The real security can be for example mortgage on company assets, or buyable investment property.
In business loans credit loss is not limited like in personal loans. In personal loans the risk has been limited by selling the unpaid loans to collection agency. In business loans we try to limit the risk by taking real securities and/or personal securities.