The definition of 'Debt-based crowdfunding'
Debt-based crowdfunding is also known as peer-to-peer lending or P2P.
With this type of crowdfunding, individuals lend money to businesses or other individuals with the expectation that it will be repaid together with interest added.
P2P lending platforms such as Funding Circle (lending to businesses) and Zopa (lending to individuals) enable lenders to earn better returns than they’d typically get from a standard bank or building society savings account.
For more information visit our peer-to-peer lending page.