Success Factors in Peer-to-Business (P2B) Crowdlending: A Predictive Approach
Peer-to-Business (P2B) crowdlending is gaining importance among companies seeking funding. However, not all projects get the same take-up by the crowd. Thus, this study aims to determine the key factors that drive non-professional investors to choose a given loan in an online environment. To this pu...
| Authors: | , , |
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| Format: | article |
| Status: | Published version |
| Publication Date: | 2019 |
| Country: | España |
| Institution: | Universidad de Sevilla (US) |
| Repository: | idUS. Depósito de Investigación de la Universidad de Sevilla |
| OAI Identifier: | oai:idus.us.es:11441/94870 |
| Online Access: | https://hdl.handle.net/11441/94870 https://doi.org/10.1109/ACCESS.2019.2946858 |
| Access Level: | Open access |
| Keyword: | Crowdfunding Crowdlending Institutional lenders Logistic regression Non-professional lenders Peer-to-business (P2B) |
| Summary: | Peer-to-Business (P2B) crowdlending is gaining importance among companies seeking funding. However, not all projects get the same take-up by the crowd. Thus, this study aims to determine the key factors that drive non-professional investors to choose a given loan in an online environment. To this purpose, we have analyzed 243 crowdlending campaigns on October.eu platform. We have obtained a series of variables from the analyzed loans using logistic regression. Results indicate that loan amount, loan term and overall credit rating are the key predictors of non-professional lender P2B crowdlending success. These findings may be useful for predicting whether the crowd will subscribe to a loan request or not. This information would help businesses to modify specific loan characteristics (if possible) to make their loans more attractive or could even lead companies to consider a different financial option. It could also help platforms select and adapt project parameters to secure their success. |
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