Consumers finance cars and extensions often through crowdfunding

Consumers finance cars and extensions often through crowdfunding

Last year, more than €1 billion in crowdfunding was raised by private individuals and companies, a growth of 48 percent compared to last year and a “record”, says businessman Gisbert Koren of More than 18,000 projects have been funded.

Traditionally, it is the startups that raise the most money from the general public. This usually takes the form of a loan on which interest is paid. Charities and creators also know how to find crowdfunding.

bigger bite

Just like consumers, they’ve taken an increasingly large bite out of the total amount collected in recent years. Last year it was 72 million euros, in 2021 more than 30 million and a year ago more than 13 million. It appears that just under 40 percent of all crowdfunding projects were classified as consumer loans last year facts From

Solar panels, a new car or camper, or even the occasional wedding, says Robert Leclerc, co-founder of Lender & Spender, of consumer crowdfunding of everything. His company is the only crowdfunding organization in the Netherlands that connects individuals who have money to spare with people who need it. “There are a lot of so-called peer-to-peer platforms out there,” he says.

firm Loan rules For consumers and the maximum interest rate for lenders makes it more complicated in the Netherlands to attract borrowers and investors. However, money is made for platforms like Lender & Spender, which take an annual commission on the amounts lent. “That’s why it hasn’t been launched here yet,” Leclerc says.


However, enthusiasm is on the rise and the company says it is doing better and better. “After the pandemic, we started to grow,” says the owner. Since 2017, more than 23,000 loans have been obtained, with an average value of €10,000. On the other side of the spectrum are more than 5,000 investors offering an average of just under €50,000 per investor. So far, they have received close to 7 million euros in interest.

For a few years now, these investors have also included some large investors, says Leclerc. “We want to have enough money at home, because we don’t want to sell out to people,” he says. The company offers investors an “expected net return” of 4.7 percent, so it’s not a guarantee. In any case, it’s much more than you get if, for example, you put your money in a savings account.

digital polling

According to Leclerc, the interest on borrowing money ranges between 7 and the maximum allowed of 14 percent, depending, among other things, on the risk profile of the borrower. “For example, if you have more space in your monthly budget, you can borrow at a lower interest rate,” says the businessman. Specifically, because interest rates are competitive, according to the owner, more and more consumers are interested in crowdfunding.

According to Leclerc, anyone wishing to borrow must undergo a fairly rigorous digital poll to determine if there is sufficient income. ‘We are no different from other lenders, and perhaps tougher.’ He calls the application process itself simple. This is usually done through brokers, third parties or advisors who refer clients and get a commission for it.

personal loan

You can also get a loan from banks to buy or renew a new car, usually in the form of a personal loan. You will receive the loan amount in one payment in your account. Each month you pay a fixed amount in interest. These interest rates vary depending on the amount, term, risk profile and purpose for which the loan is being used. Borrowing money to buy a new or refurbished car is usually a bit cheaper. The rates below are indicative.

Loan of € 5,000 in the “Others” category for a period of 5 years:

– ABN AMRO: 11-12.9 percent
ING: 9.1-10.7 percent
– Rabobank: 9.8 percent

‘sleep at night’

A crowdfunding loan can be arranged in a day, though applicants have to sleep on it for a night before they can be approved. “It can get annoying if you want to exploit that car on a Friday afternoon,” says Leclerc.

After all, it is not without risks. For both the borrower and the investor. Thus, it should be a small part of the loans to cross outBecause they no longer pay. “If this happens, you will lose at most a small part of your investment,” says financial advisor Amanda Bolthuis of, who also sometimes sends her clients to crowdfunding. “Your investment is spread over several loans, so the risk is lower.”

Borrowing money costs money

According to the Netherlands Authority for Financial Markets and the Consumers Association, many consumers consider crowdfunding less risky than investing in funds or stocks, but this is often not justified. Advice: Do proper research on the risks and never invest more than 10 percent of your freely investable capital Crowdfunding.

For the borrower: Borrowing money costs money. Information Officer Nebod says that getting a loan seems very easy. But there are always risks involved. Responsible lending So is the motto.

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