Debt crowdfunding

Debt crowdfunding

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A form of crowdfunding in which the contributors provide support in the form of a loan with expectation of financial return. They can receive interests at the end of the time loan (traditional model), or an agreed share of the profits of the firm (revenue sharing model). The target crowd are investors and entrepreneurs. Debt crowdfunding is further divided into peer-to-peer (P2P) lending and business loans.

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