ABSTRACT
This chapter deals with the other main model of the capital raising alternative finance ecosystem, that of loan-based crowdfunding, also known as peer-to-peer (P2P) lending or marketplace lending crowdfunding. Similar to Chapter 2, it illustrates the lending process, the subjects involved in it, and the lending conditions (i.e., risk, maturity, and so on). Then, it analyses and compares the different business models that can be adopted by loan-based crowdfunding platforms. Chapter 3 also examines the regulatory context and analyses the characteristics of the tax incentives available for this type of crowdfunding. The chapter concludes with an overview of the key players in the P2P business lending market.
