How investment platforms have democratized the financial system

Thanks to online investment platforms, savers can buy and sell all kinds of financial products from the comfort of their own home

The digital revolution has completely transformed people’s habits. It is now possible to do the shopping, go to class, talk to the doctor, or invest without leaving home. This radical change is due to the emergence of online stores, videoconferencing, and investment platforms.

As the name suggests, investment platforms are online spaces where savers can carry out financial transactions and invest their capital. In other words, they buy and sell all kinds of assets to increase their wealth and obtain economic benefits.

The boom experienced by cryptocurrencies highlighted the interest of savers in disassociating themselves from conventional institutions. Several generations turned their backs on banks and opted for this alternative, which promised them unprecedented autonomy.

Despite their recent collapse, the public’s desire for independence remains. People want to make their own decisions and design their investment strategies, choosing where, how much, when, and how to invest. And investment platforms are bursting in to meet this need.

The democratization of the financial system

Investment platforms, which were born in the heat of the internet, have drastically democratized access to the markets, breaking down many of the barriers to entry that existed in the past.

In the past, this world was more reserved for the wealthy and was not accessible to ordinary citizens. Those who wished to invest were forced to resort to brokers, the only figures with the capacity to carry out operations on the stock exchange.

However, investment platforms took the table by storm. And today, practically everyone can inject their savings into the most appropriate initiative, enjoying a return in return. All they need is a cell phone or a computer.

It doesn’t matter whether they opt for stocks, commodities, currencies, index funds, bonds, or even alternative financing mechanisms such as crowdlending or crowdfactoring. Thanks to investment platforms, savers can trade in countless markets quickly and securely. And without the presence of an intermediary.

What about organizations? As we will see below, something similar is happening with them. Several decades ago, the possibilities open to projects seeking funding were quite limited. The formula was very simple: if they needed resources, they had to apply to a bank.

This was a real obstacle to progress. If businesses did not get the go-ahead from the bank, they did not receive funding. As a result, many of the rejected initiatives failed to take off and establish themselves in the market. And those that did get the go-ahead had to accept the conditions imposed on them since they had little bargaining power.

But, as we will see below, the arrival of investment platforms managed to turn this situation around.

Investment platforms have popularized alternative financing mechanisms such as crowdlending and crowdfactoring

The benefits of investment platforms for companies

To begin with, these spaces dramatically expand the financing alternatives available to companies. There is a whole world beyond bank loans, and investment platforms bring it closer to businesses, which can request loans from individuals or post their invoices so that savers can advance that amount.

While it is true that they have to repay this amount later and compensate investors with interest, this allows them to enjoy liquidity at critical moments that can be decisive for their survival. And it pays off in the long run.

On the other hand, companies that bet on investment platforms are not subject to the interests of banks. They have more muscle to negotiate aspects such as the term of the operation or the interest rate itself, so it is more likely that their demands will be met.

In addition, these processes are not as bureaucratic, which increases the speed with which firms can access resources. And at the same time, they are a cheaper option, as the fees for many of these services are lower than those charged by banks.

The benefits of investment platforms for savers

The emergence of investment platforms has also brought many advantages for individual investors. As with organizations, the range of options is much greater. There are increasing channels, so they can choose the one that best suits their needs.

As they are not dependent on traditional banking institutions, the bureaucracy they face is also less. Investment platforms are incredibly agile, so that savers can inject or withdraw their capital quickly.

Limits virtually disappear. In the past, many instruments required individuals to invest a minimum amount to participate in the benefits. Now, there are products in which it is possible to invest with as little as 100, 50, or even 20 euros. This disappearance of the initial capital opens the doors of the financial environment to all types of people, even the most modest savers.

Finally, it should be borne in mind that the working space of investment platforms is the internet. This means that investors do not have to travel to an office but can carry out all transactions easily and conveniently from home, the subway, or the gym. All they need is a device connected to the network.

Advance invoices with Inversa Invoice Market

Invoice platforms can be very diverse. While some choose to rely on conventional channels, others have decided to focus on alternative financing mechanisms, boosting a phenomenon that is becoming increasingly popular.

Thus, crowdlending platforms are emerging, where investors grant loans to financially support companies, or crowdfactoring, where they advance the value of their invoices in exchange for a return.

Inversa Invoice Market is one of the latter. An invoice financing platform with a robust ethical component and focused on the real economy, where people finance people.

Users who register on this marketplace access a large selection of invoices, which have been previously endorsed to give them a level of risk, thus increasing transparency and security. Once they find a company that suits their conditions and the transaction is closed, they will immediately receive the agreed interest.

When the completion date arrives, they receive the original capital back. Generally, most of these operations work in the short term so that many investors get their savings back after three months—or even thirty days.

A unique opportunity to profit quickly and safely.

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