Crowdlending: smart financing option for growing SMEs
June 2025 - Looking for capital without detours through the bank? Crowdlending offers SMEs a flexible and fast alternative to finance projects - from digitalisation to real estate.
For many SMEs, the search for funding remains a challenge. Banks have strict conditions and lengthy procedures, and traditional loans are not always suited to the needs of a company in full growth. Fortunately, an alternative form of financing is gaining ground: crowdlending. But what exactly does it entail? Which projects are eligible? And what do you need to know as an entrepreneur to get started with it?
What is crowdlending?
Crowdlending - literally ‘borrowing through the masses’ - is a form of financing in which individual investors lend money directly to an SME via an online platform. As an entrepreneur, you prepare an investment dossier. Interested investors can allocate part of their savings to your project, in exchange for a fixed interest rate and a predetermined term (usually between 12 and 48 months).
A big advantage: fast and less complex application procedures than with banks, and often more flexible conditions. For investors, it is also an interesting way to earn a return while investing in the real economy.
What makes a project suitable for crowdlending?
Not every project is automatically suitable. Crowdlending platforms only select companies that meet certain conditions. For instance, your company must usually have completed at least three financial years, be able to demonstrate stable revenue growth and have a healthy financial profile. They also look at the quality of management, market position, and - of course - repayment capacity.
Crowdlending is best suited to clear, defined projects that deliver concrete results within a limited timeframe. The following types of projects often qualify:
Expanding business activities: want to tap a new market or launch an additional product line? Crowdlending is ideal for financing growth, especially if you can demonstrate that there is a market and the returns are realistic.
Investment in real estate or infrastructure: the purchase or renovation of business premises is popular with investors because real estate is tangible and relatively stable in value. It also includes expansion with a new branch.
Stock and working capital financing: do you need extra funds to purchase seasonal stocks or cope with temporary liquidity problems? Crowdlending offers quick access to working funds.
Sustainability and innovation projects: solar panels, energy-efficient production lines or investments in circular processes? More and more investors want to put their money towards social impact. This also includes digitalisation and automation - such as the implementation of new technologies or software.
How does it work in practice?
A crowdlending process starts with an application via a recognised platform. After a thorough screening (sometimes up to 250 indicators!), your project is given a risk score. If it is accepted, your project will appear online on the platform, together with an investment note explaining why you are lending, what you do, the market you operate in and what guarantees you can offer.
Investors then choose whether to get in. Depending on the risk and type of loan, returns can range from 3.25% to 12%. In some cases, the capital is insured, which provides additional reassurance for those who do not like risk.
What should you look out for?
Choose a reliable platform licensed by the financial regulator. Also look at the track record: how many projects have already been funded, and with what success?
Be transparent and prepared. The better your dossier (figures, vision, repayment plan), the more likely you are to attract sufficient investors.
Respect commitments. Crowdlending is a loan, not a gift. You pay back monthly with interest. So consider the impact on your cash flow.
Finally: who is crowdlending not suitable for?
Crowdlending is not a solution for start-ups with no history or companies with financial difficulties. Nor is it meant for unfunded, risky adventures without a concrete plan. But are you an established SME with a clear growth story? Then crowdlending is definitely worth considering.
