Add to favorite
 
123
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa


P2P Financing in Russia
August 26, 2019 00:08


(Source: https://static.leiphone.com/uploads/new/article)

The search of financing is one of the key issues in business. Bank requirements are becoming tougher, the rates are growing, refusals are received all the more often. Against the backdrop of all these processes, the business is constantly looking for alternative sources of financing. There exist the following types of p2p financing.

First of all, crowdfunding (loans issued by physical persons or legal entities to businesses) and crowdinvesting (financing by the sales of shares under a loan agreement). The Central Bank of the Russian Federation defines them as subtypes of crowdfunding, but their essence is slightly different.

People in crowdfunding invest in implementation of a specific project, getting non noncash remuneration in return, whereas crowdlending and crowdinvesting are all about earnings. Crowdlending is a form of financing when legal entities or physical persons invest in projects, but on a condition of a subsequent return.

Crowdfunding concerns business to a smaller extent: it involves free collection of funds for a specific project.

Read More Articles about Russian Business

Risks

The Central Bank of Russia speaks about the six main risks and problems:

1. The lack of confidence in the fact that a “virtual contractor” on the platform really exists or that the borrower did not use any third party data without the knowledge of the latter;
2. The lack of minimum requirements to scoring and the lack information on the measures against fraud taken by the platform; 3. The quality of project evaluation and verification of the package of documents are determined by the procedures and rules of each specific platform;
4. If a platform faces technical problems or suddenly shuts down at the initiative of the owners, it is probable that  investors and borrowers are also going to have problems;
5. There are no certain rules for the return of funds in case the project has not collected the required amount for launch;
6. There is a possibility of using fraudulent schemes.

The platforms are aware of the risks and take measures to ensure the safety of customers. According to the internal statistics data, the work on the selection of projects helps to minimize risks. Nowadays, crowdfunding in Russia is not completely regulated by law, but the bill is being developed and is likely to be adopted this year.

The goal of regulation is developing the crowdfunding market as a funding source for micro, small and medium-sized businesses, discouraging unfair practices and protecting investors' interests.




Author: Anna Dorozhkina

Tags: Russian business Russian economy Russian companies   

Next Previous

You might also find interesting:

The United Kingdom Banned Kaspersky Lab's Antivirus In Departments Responsible for the National Security The USA Sanctions Against Rosneft May Influence The Plans For Its Privatization Production Of Petrol Made 38.9 Million Tons In 2015 Gazprom Updated Procurement Policy Karelia Attracts More Tourists









Comment on our site


RSS   twitter   facebook   submit

Bookmark and Share

search on the map
TAGS:
Russian models  Russian startups  Museums of Writers  Progress Party  Russian Cinema  Pussy Riot case  Spacecrafts  Magadan  Krasnoyarsk Economic Forum  Tragedy  Samara  Music Concerts  Russian painters  the Urals region  Russian hotels  Chelyabinsk Region  Inclusive Schools  Federal Service for Financial Markets  Bosco Fresh Fest  Russian tourism  Vladimir  Russian regions  Book Tickets for Ballet  Seals  Russian beaches  St. Petersburg Guest Card  Gryazi  Penza  Children's Art  travel to Russia  Russian sportsmen  Alexander Lenkov  Russian fashion  Mercedes-Benz Fashion Week Russia  Michel McFaul  Russian business  Exhibitions in Moscow  Switzerland  advertisement in Russia  Moscow  St. Petersburg  New Movies   International space station  Orlov Paleontology Museum  Hermitage Museum  Russia investment  Festivals in Moscow  public transport  Russian Internet  Travel 


Travel Blogs
Top Traveling Sites