Crowdfunding is a type of pooled equity fund that is focused on making loans. Crowdfunding combines individual’s money to make larger loans than they can afford to make on their own. Instead of being a lender each member is considered an investor. Crowd funding has become more common and sites have been created to gather individual investors together. Those sites ites will still have a minimum investment that are required to participate.
Unlike a private lender, crowdfunding companies will have set parameters for the types of loans they can make and will be much less likely to negotiate with a borrower if they hit a bump in the road.