Editor’s Note: This post was originally published in Aug 2016 and has been edited and updated for relevancy and comprehensiveness.
P2P Crowdfunding campaigns make it possible for more people to invest successfully and grow their wealth.
What is P2P Crowdfunding?
Ethis Group started out within the real estate P2P crowdfunding sphere in Indonesia with the purpose of improving the lives of low-income families by developing affordable homes. P2P crowdfunding has connected borrowers directly to investors. Ethis as a platform, sets the rates and terms and enables the transactions to occur. From 2016 to 2021, Ethis, through its global community of investors from more than 50 countries, helped fund development projects to build close to 10,000 homes.
Since the onset of COVID-19, Ethis has launched popular new investment products, including short-term, high-yield supply-chain financing projects in Indonesia and equity investment in ‘future tech’ startups in Malaysia.
If you are planning to invest, read on to find out seven reasons why you should consider choosing P2P crowdfunding over banks as your platform for investment.
You don’t need to be part of the ultra-rich to invest in lucrative projects anymore. Through P2P crowdfunding platforms, more people today, especially the youth and middle-income, are able to take part in the investment market.
Crowdfunding allows investors to put in a low minimum amount to invest. Here at Ethis, that can be as low as US$250!
This wouldn’t be the case if you went to the bank for certain investment projects.
P2P crowdfunding platforms also provide a personal service.
Most have personal, interactive communication with investors and can give specific details of the borrowers and investment projects, in a way that most banks can’t.
In Ethis, we deliver regular updates of projects to the investors, through pictures and videos.
P2P crowdfunding platforms are fast and efficient because they’re hosted online. The process itself takes just minutes, as it only needs an internet connection and funds. Traditional Banks, however, need a lot more documentation and have complicated processes that can take a long time.
Because of all of the above reasons, P2P crowdfunding is an excellent way to begin investing. First-time investors, with small experience and savings, will find crowdfunding suitable to their needs. Investments can be small and spread out in projects and campaigns that you like and want to support.
To help bring innovative new concepts and products into the market is one of the unique non-financial benefits of being an investor in a crowdfunding campaign. It gives you the chance to take part in something exciting or that you care about. Social entrepreneurs are more and more looking at crowdfunding to meet their goals. Likewise, social entrepreneurship is now a popular feature in crowdfunding.
There is also a feeling of satisfaction from knowing that you helped out start-ups and companies. A lot of businesses, SMEs and startups, struggle to get loans from banks. P2P crowdfunding, and your investment, allows these companies to survive and grow. Ethis allows normal individuals anywhere in the world to make profits like real estate developers do, and from a social angle provide houses for the needy in Indonesia. There’s nothing like making healthy profits while helping a family break out of poverty!
With low, minimum required investments, it is easier for you to diversify your portfolio. You can put in small amounts of money in several crowdfunding investments which will typically reduce your risk. Crowdfunding platforms also charge investors minimal fees so it is less costly to spread out your money. The same cannot be said of many banks.
The main appeal of crowdfunding is the high potential for lucrative returns. Many equity crowdfunding investment campaigns are in startups with high opportunities for growth and this makes it likelier for you to get a high return. On the other hand, banks offer investments in big companies that have less space to expand.
Crowdfunding campaigns also offer a higher return as compared to investments made through banks. For example, Ethis on average offers a 12-15% return for a 1-year project. Compare this to the 2-4% return that banks offer for a long-term savings deposit!
Instead of saving your money in a savings deposit, why not invest in short-term, lucrative crowdfunding campaigns?
Crowdfunding is the future of investment. If you are looking to make profits the exciting way, feel free to visit Ethis to take a look at our successful and socially impactful P2P crowdfunding campaigns.