There's a distinct difference between being financially secure and being a greedy money grubber. One works hard to get the money they know they and their family need, the other is obsessed with acquiring more and more money, no matter the consequences.
In this day and age of "Fintech" startups, the terminology can be a bit much to keep up with. In this post, I'll explain what we mean when we use the term "crowdfunding project" at Lendahand.
Remember the good ole days? Back when there was a king who owned everything and anyone who wanted to do something had to ask him for permission? Well, they were good days if you were a king.
Why Impact Invest?
The power of compound interest means that long-term investing almost always makes sense. Although it involves more risk than keeping your money in the bank, investing means that you’ll be able to get higher returns year on year. In recent years, companies have made it much easier for inexperienced investors to enter the market, lowering the initial investment amount and providing risk profiles for different investing appetites.
These great entrepreneurial stories from Asia are not covered in your daily news, but why?
When first starting a business, entrepreneurs almost always need some upfront capital to finance start-up costs such as buying inventory, purchasing a building, or hiring your first employees.
There are various ways to combine crowdfunding and sustainability. Besides the many alternatives in The Netherlands there are other companies which focus on creating worldwide impact from the Netherlands. Improving sustainability and decreasing environmental impact is a global cause after all.
Everyone who partakes in crowdfunding is looking for ways to minimize the risks associated with crowdfunding. But how do you do this? In what way can you influence the risks of making a bad investment?
Crowdfunding is a timeless concept and originates from the market of books and publications. Back then, books were only written and published if there was a sufficient amount of subscriptions that indicated a certain level of interest for that subject. This way, writing a book was ensured to be at least a bit profitable.
With crowdfunding, it is very easy to contribute to the global fight against poverty. In order to reach this, creating jobs is considered the most important instrument. For instance, you can provide a new entrepreneur with a small loan through crowdfunding easily, so he is able to start building a life for himself and his family.
At Lendahand, people can invest in our local partners (banks and non-banking financial institutions) or directly to entrepreneurs through crowdfunding. These investments have interest rates of approximately 2.5 to 8 percent annually. As you can see, this is quite a difference. The higher the interest, the higher the price that needs to be paid. But the price of what, exactly?