The alternative finance industry is going through explosive growth all around the world thanks to technology and the connectivity provided by the internet! This has given opportunities to those who want to invest money, especially retail investors access to a wide range of investment products  that has attractive returns which previously were only available to instituitional investors.

What are the different alternative finance models available and which would be a better option for me to invest my money?

Below is a summary of three popular alternative finance models and the distinctions between them:

Investors who are seeking to enjoy a higher return on their available funds can consider investing through alternative finance platforms that are now available and easily accessible via the Internet.

It is hoped that with a better understanding of the salient differences between available alternative finance models, investors are able to make a better decision as to which to invest into to suit their own financial circumtances and risk appetite.

Readers who are interested or require more information on alternative finance can contact the author of this article.

Nalinee Chinowuthichai (co-founder of InvoiceInterchange)

Email :  nalinee@invoice-interchange.com

Reference

• Lending Club official website, https://www.lendingclub.com
• Syndicate Room, What is equity crowdfunding?, https://www.syndicateroom.com/investors/what-is-equity-crowdfunding
• James Johnson, “Which Way Is the Exit?” How Will Equity Crowdfunders Exit Their Investments? http://crowdexpert.com/articles/investment-crowdfunding-roi-2/, 2014
• Andrew Zaleski, “Equity crowdfunding hits $662 million in 2015” http://www.cnbc.com/2015/04/16/equity-crowdfunding-hits-662-million-in-2015.html, 16 April 2015
• Oscar Williams-Grut, Growth Capital: MarketInvoice’s Anil Stocker takes aim at big banks in life after Lehman, http://www.standard.co.uk/business/markets/growth-capital-marketinvoices-anil-stocker-takes-aim-at-big-banks-in-life-after-lehman-9987095.html, 19 January 2015
• Mark Shore, Characteristics of Peer-to-Peer Lending Loans, http://www.pmifunds.com/characteristics-peer-peer-lending-loans/#.VgjQEmsvLIs, 15 May 2014
• Money & Banking website, The cloudy future of peer-to-peer lending, http://www.moneyandbanking.com/commentary/2015/3/16/the-cloudy-future-of-peer-to-peer-lending,  16 March 2015