Crowdlending and crowdfunding are both forms of collaborative financing, but with different objectives.
Crowdlending: In crowdlending, investors (individuals or institutions) invest money in business projects by granting loans and receive repayment of the money with interest in return — it involves a creditor-debtor relationship between investors and borrowers.
Crowdfunding: In crowdfunding, people invest money or resources in projects or causes without expecting a direct financial return, receiving only equity, symbolic rewards, exclusive products, or recognition.
Therefore, the main difference between crowdlending and crowdfunding is in the nature of the investment: crowdlending involves loans with an expectation of financial return in the form of interest, while crowdfunding involves contributions to projects without a direct expectation of financial return.
