Crowdlending

Providing loans to project developers, or purchasing debt (or bonds) issued by developers in exchange for a return on the principal at an interest rate and for a term that are, in principle, set in advance.

The main types of repayment are:

• Balloon payment: the principal is repaid at the end of the loan term, and interest is paid periodically
• Constant installments: payments made at regular intervals (not necessarily annually) with constant repayment amounts (interest + principal) (this is often the repayment method used by banks for mortgage loans)
• Constant principal repayment: payments made at regular intervals (not necessarily annually) with constant principal repayment amounts. Interest is also paid periodically on the outstanding principal, so the annual payments decrease as repayments are made
• Zero-coupon: the principal and interest accrued over the term of the loan are paid in a single lump sum at the maturity of the bond.

When there is a well-established and liquid secondary market, it is possible to resell your debt securities. This is the case on Enerfip thanks to the Enerdeal service

What is the difference between crowdfunding and crowdlending?

Both systems are used to raise funds, but crowdlending is more focused on financial returns, whereas crowdfunding can support creative, social, or entrepreneurial projects, offering a wider variety of rewards.