Can the loan be considered an investment?

More and more Brazilians are realizing the importance of investing. Investing can be a great way, either to secure retirement and live a smoother life in the future, or to raise money and achieve a goal more easily. But, did you know that a loan can be considered an investment?

The loan as investment

The loan as investment

What is an investment? In the simplest way possible, it is any action in which you apply an amount of resource to receive a financial return in the future.

There are several types of investment. Not only are savings, which are the best known and probably the least efficient, but they go to the most complex stocks. However, the loan can be a very positive investment. In it, you borrow an amount of money to receive the return plus interest in the future.

It’s such a good option, which is why banks do it. Banks lend money to receive the return after their inception hundreds of years ago. In this sense, until recently, loans were exclusive to financial institutions. This is simply because of their ability to provide the capital companies needed.

However, there are currently systems and solutions that solve this problem for you, the individual, to be able to lend money and become an investor.

A good deal for both

A good deal for both

A good example is a P2P lending system , ie peer-to-peer lending or end to end. In this model, there is a platform where companies “advertise” that they need a loan for a certain reason. These reasons could be: running a project or needing resources to handle a very large order, for example.

On the platform, investors decide when they want to lend and to which company. As are many investors, capital is easily reached and the return is made through interest. That is, this set of investors played the role of the bank. Best of all, this process is beneficial for both.

For businesses, the loan is terminated faster. That is, there is a huge decrease in bureaucracy, which with banks is huge. This slows the process down and is very laborious.

In addition, borrowing from individuals through this system results in much lower interest rates than banks .

Stopping well to think, the loan is an investment for the company itself. No one borrows for no reason, so the company is investing in its future, either short or long term.