Exploring the lending business crowdfunding to support SMEs' financing decisions
Lending business crowdfunding (LBC) is an innovative financing tool for small and medium enterprises (SMEs) and is especially useful in vulnerable and risky markets. To date, little is known about the information transparency and management dynamics of these new platforms, partly as a result of a la...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2022-10-01
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| Series: | Journal of Innovation & Knowledge |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X22001135 |
| _version_ | 1798023026811338752 |
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| author | Valeria Stefanelli Greta Benedetta Ferilli Vittorio Boscia |
| author_facet | Valeria Stefanelli Greta Benedetta Ferilli Vittorio Boscia |
| author_sort | Valeria Stefanelli |
| collection | DOAJ |
| description | Lending business crowdfunding (LBC) is an innovative financing tool for small and medium enterprises (SMEs) and is especially useful in vulnerable and risky markets. To date, little is known about the information transparency and management dynamics of these new platforms, partly as a result of a lack of harmonization in the crowdfunding sector. This article draws on a qualitative multicase approach to map and classify the main characteristics of the credit supply provided by nine LBC platforms. The database is unique and makes this analysis particularly original. The study found some limitations to the information transparency on services offered to SMEs who could access LBC. Alongside this, some advantages emerged, such as the timeliness of the service, and some critical points, such as the high interest rates and the numerous fees applied to the crowd-borrowers. The study also has practical implications, allowing SMEs to carefully assess the costs and benefits of the LBC model. |
| first_indexed | 2024-04-11T17:39:35Z |
| format | Article |
| id | doaj.art-1067347998574880af643351f8e4c732 |
| institution | Directory Open Access Journal |
| issn | 2444-569X |
| language | English |
| last_indexed | 2024-04-11T17:39:35Z |
| publishDate | 2022-10-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj.art-1067347998574880af643351f8e4c7322022-12-22T04:11:31ZengElsevierJournal of Innovation & Knowledge2444-569X2022-10-0174100278Exploring the lending business crowdfunding to support SMEs' financing decisionsValeria Stefanelli0Greta Benedetta Ferilli1Vittorio Boscia2Corresponding author.; Department of Economic Sciences, University of Salento, Via per Monteroni, Campus Ecotekne, 73100 Lecce, ItalyDepartment of Economic Sciences, University of Salento, Via per Monteroni, Campus Ecotekne, 73100 Lecce, ItalyDepartment of Economic Sciences, University of Salento, Via per Monteroni, Campus Ecotekne, 73100 Lecce, ItalyLending business crowdfunding (LBC) is an innovative financing tool for small and medium enterprises (SMEs) and is especially useful in vulnerable and risky markets. To date, little is known about the information transparency and management dynamics of these new platforms, partly as a result of a lack of harmonization in the crowdfunding sector. This article draws on a qualitative multicase approach to map and classify the main characteristics of the credit supply provided by nine LBC platforms. The database is unique and makes this analysis particularly original. The study found some limitations to the information transparency on services offered to SMEs who could access LBC. Alongside this, some advantages emerged, such as the timeliness of the service, and some critical points, such as the high interest rates and the numerous fees applied to the crowd-borrowers. The study also has practical implications, allowing SMEs to carefully assess the costs and benefits of the LBC model.http://www.sciencedirect.com/science/article/pii/S2444569X22001135FinTechLending business crowdfundingBanksSMEsInformation asymmetries |
| spellingShingle | Valeria Stefanelli Greta Benedetta Ferilli Vittorio Boscia Exploring the lending business crowdfunding to support SMEs' financing decisions Journal of Innovation & Knowledge FinTech Lending business crowdfunding Banks SMEs Information asymmetries |
| title | Exploring the lending business crowdfunding to support SMEs' financing decisions |
| title_full | Exploring the lending business crowdfunding to support SMEs' financing decisions |
| title_fullStr | Exploring the lending business crowdfunding to support SMEs' financing decisions |
| title_full_unstemmed | Exploring the lending business crowdfunding to support SMEs' financing decisions |
| title_short | Exploring the lending business crowdfunding to support SMEs' financing decisions |
| title_sort | exploring the lending business crowdfunding to support smes financing decisions |
| topic | FinTech Lending business crowdfunding Banks SMEs Information asymmetries |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X22001135 |
| work_keys_str_mv | AT valeriastefanelli exploringthelendingbusinesscrowdfundingtosupportsmesfinancingdecisions AT gretabenedettaferilli exploringthelendingbusinesscrowdfundingtosupportsmesfinancingdecisions AT vittorioboscia exploringthelendingbusinesscrowdfundingtosupportsmesfinancingdecisions |