Analysis of late loans from crowdfunding and mutual lending platforms

Abstract

Mutual borrowing and crowdfunding are an alternative to traditional sources of financing. These are increasingly popular methods of raising funds. Developed and constantly updated, accelerating technological innovations have led to greater opportunities for online financing. The growing popularity of crowdfunding platforms opens up new opportunities for investors and borrowers. This is one area that is receiving increasing attention. The aim of the article is to find out how many overdue loans there are in the analyzed platforms and by performing a correlation regression analysis of the data, a study of overdue loans is carried out. The study aims to determine what proportion of platform borrower’s default, how long they delay in paying debts, also to determine whether higher interest rates also mean a higher risk of losing investment. This way it is determine whether it is worthwhile for investors to invest in crowdfunding platforms.