Online alternative financing platforms are intended to serve as a meeting point between people who want to invest their money and companies or individuals who need to obtain liquidity. It is clear to no one that the former are making investments. Either by lending their money, as in the case of crowdlending. Investing it to obtain shares in the company in question, as in crowdequity. Or by advancing the amount of an invoice, as in crowdfactoring. But concerning the latter, i.e. people and companies seeking liquidity, in many cases, it is also possible that we are talking about investments: a person who needs money to pursue a master’s degree that will allow him to grow professionally, a company that wishes to obtain liquidity to digitize its business model… The casuistry is endless.
Therefore, when someone suggests that we talk about investments in the field of alternative financing, we must take into account not only the situations that are obvious to the naked eye. For example, a small saver acquires the rights to an invoice to get a return on his money and, incidentally, to support businesses in the real economy.
But it is important to go further. Many of the people and companies that turn to alternative financing for liquidity do so not only to manage their expenses but also to invest.
Let’s talk about investments and how financing can be used to invest in a personal, professional, and/or business project.
Beyond meeting needs
When a company, an individual, or a family seeks financing, we tend to think that the reason is a necessity. In other words, they do not have sufficient financial resources to meet their expenses. Either because of an increase in expenses or the appearance of unforeseen expenses. Or because there has been an unexpected drop in income.
Even though the financing contributes to solving this type of casuistry, it is not less certain that on many other occasions the motivation of the people or businesses that look for liquidity is not the necessity, but the bet for investing in their projects.
That is why we must talk about investments to broaden the focus and dwell on more complex realities than we tend to appreciate at first glance.
If a person asks for a loan, the reason does not have to be to obtain money to alleviate economic problems, but it may be that he has decided to start a business as a self-employed person and needs liquidity to get the project off the ground.
On the other hand, if a company wishes to acquire machinery that will allow it to optimize its processes and be more productive and profitable, it can previously turn to a financing service to obtain the money that will allow it to make this technological investment.
It is not the only necessity that is the driving force behind the commitment to financing. Let’s talk about investments, let’s dismantle prejudices, and let’s make a myriad of realities visible.
Not everyone has the resources to invest
Unfortunately, not all people and companies have the economic resources to invest. If we go back to the previous examples, we can find two easy-to-visualize cases.
A person who is still starting up his professional and business project needs money to get it rolling and it is very plausible that he does not have the necessary savings to make all the investments he needs to undertake. While a company has decided to carry out a technological leap of great magnitude is highly probable that it has in its credit the necessary economic resources to face the investment without unbalancing its accounts.
Fortunately, investment is not only available to those who have the resources to invest. Even less so in the era of alternative financing, in which the implementation of marketplaces such as Inversa Invoice Market facilitates the possibility for companies to obtain liquidity to invest in their projects in the short term and without the need to consume CIRBE and/or deal with the rigid banking bureaucracy.
Alternative financing to boost the investment of savings…
Because of the above, we can argue that online alternative financing platforms are key to facilitating the investment of economic system players in two ways:
- They democratize small savers’ access to financing products and services.
- By making it easier to obtain liquidity, they also help to make it possible for individuals and companies without sufficient resources to invest in themselves.
In terms of attracting small investors or savers who are outside the traditional financial system, alternative financing platforms allow savers to invest their money from the comfort of their living rooms. The possibility of accessing these marketplaces is extremely high. The minimum investment to be made is within the reach of any small investor. In the case of Inversa Invoice Market, you can invest with as little as 20 euros.
In addition, investors are provided with a high level of autonomy and a great deal of information on the products they can acquire.
Savers can know at all times who is the company or person they need to finance, what is return they will get for investing and what is the relevant credit rating.
… And help individuals and companies to invest in themselves
On the other side of the relationship, we have everyone who wants to finance themselves to then invest. In these cases, alternative financing platforms are not the scenario in which the investment is undertaken, but the actors that make it possible for this investment to come to fruition, helping companies or individuals obtain liquidity.
Thus, beyond the direct investments made in these marketplaces, the truth is that alternative financing can be key to enabling multiple investments that both individuals and companies must undertake to strengthen their projects.
While small and multiple investors in alternative financing, are looking for an economic gain and/or to support other people’s projects, especially in the case of crowdfunding. Regarding the companies and individuals who finance themselves through them, their goal is to invest in themselves. Spending money to obtain benefits later.
Whether paying for studies, buying machinery, or developing software. All these investments seek to generate greater wealth in the future and cover the expenses generated when they were launched.
Let’s talk about investments, let’s look to the future
Everything that we have been unraveling throughout this article allows us to observe the potential of alternative financing platforms when it comes to supporting the investment concerning small savers, but also companies in the real economy.
As the saying goes, “if you want something, it costs you something”. Investing, to a certain extent, responds to this postulate. The person or organization that invests gives something to get, in return, a better thing.
If humanity has reached this point, it is because of its constant commitment to investing its resources in the search for something better. Over the centuries, we have invested time, effort, and, yes, money, to grow and advance.
Alternative financing strengthens entrepreneurial momentum and encourages investment. The future is in our hands. The time has certainly come for us to talk about investment.