Chapter 14

Marketplace lending

Abstract

This chapter discusses marketplace lending, including the typical interest rates in marketplace lending (debt crowdfunding where entrepreneurial firms raise money from individual investor), and which types of marketplace lending campaigns attract more investor interest. Also, this chapter explains, with reference to evidence from Germany, that marketplace lending investors pay attention to easy to understand ratings of borrowers (provided by platforms) instead of complicated financial information.

Keywords

Entrepreneurship; entrepreneurial finance; crowdfunding; marketplace lending; interest rates; signaling; debt; crowdlending; credit rating

14.1 Introduction

Marketplace lending refers to online lending from ...

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