Lending & Alternative Financing

Creating a lending platform doesn’t have a single price tag. The cost depends on your app’s complexity, underlying technology, the number of human resources, and the deadline for its launch to market. The average cost of such an app’s development is around $200,000. 

The timing of a lending platform’s development depends on the number of features and the technology on which you base the core infrastructure of your lending software. The average deadline for such a project is 3 months.

Alternative finance relates to financial assets that go beyond the traditional categories of cash, digital money, and equity. Users may consider alternative products like private equity, venture capital, commodities, and real property. In the digital market, alternative finance sources are cryptocurrencies, equity crowdfunding, revenue-based financing solutions, and online lending platforms for consumers and businesses. 

Businesses and startup owners use crowdfunding as the most popular alternative to traditional financing. People with innovative, appealing business ideas publish their business plans and presentations on crowdfunding platforms and collect financing from investors. Crowdfunding is also a form of P2P lending as investors give money directly to businesses without the oversight of intermediaries, such as banks or formal lending organizations. 

An alternative lending platform typically involves lending schemes instead of urging users to turn to a conventional bank for a loan. Other forms of alternative finance provision include invoice financing and crowdfunding. All these lending approaches involve the provision of funds to individuals or businesses requiring financing by private market participants. The borrowers pay an interest rate to lenders, and the platform also gets a commission for the loan contract.