CrowdLending (Business) - Belgium

The total transaction value in the Crowdlending (Business) market market in Belgium is expected to reach US$18.83m in 2024.
When compared globally, it is evident that China leads with a transaction value of US$16bn in 2024.
Belgium's CrowdLending market in Capital Raising is witnessing a surge in innovative platforms connecting investors with small to medium-sized enterprises.

Definition:

Crowdlending platforms, otherwise know as lending-based Crowdfunding enable small and medium-sized enterprises to get loans from single or multiple, private and institutional investors via an online brokering platform. On credit platforms such as Funding Circle, OnDeck, Kabbage and Lending Club, businesses can obtain small loans up to a set maximum value. As a rule, financing requests are analyzed by the provider via an internal scoring system and are checked against additional minimum requirements such as turnover. Subsequently, these financing requests can be invested in by private and institutional investors at an appropriate interest rate determined by the credit rating of the company. This makes it possible for SMEs to borrow quickly and easily, as the basic requirements for obtaining finance are more flexible compared to traditional bank loans.

Alternative financing for SMEs and freelancers (bank-independent loans)
Small business loans issued by single or multiple private and institutional investors (non-banks)
Online loan request, scoring and approval

Traditional bank loans
Consumer loans and credit card transactions
Business-to-Business credit scoring and rating services
Online marketplaces for consumer loans (see Marketplace Lending)

The CrowdLending (Business) market in Belgium has been experiencing significant growth in recent years, driven by changing customer preferences and a favorable economic environment.

Customer preferences: Belgian businesses are increasingly turning to CrowdLending platforms as an alternative source of financing. This is due to several factors, including the ease and convenience of accessing funding through online platforms, as well as the ability to secure loans at competitive interest rates. Additionally, CrowdLending offers businesses the opportunity to diversify their sources of funding and reduce their dependence on traditional banks.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Belgium is the growing popularity of peer-to-peer lending platforms. These platforms connect individual lenders directly with businesses in need of funding, cutting out the middleman and reducing costs for both borrowers and lenders. This trend is driven by the increasing trust and confidence in online lending platforms, as well as the desire for more transparent and efficient financing options. Another trend in the market is the emergence of specialized CrowdLending platforms catering to specific industries or sectors. These platforms offer tailored financing solutions and expertise to businesses operating in niche markets, attracting borrowers who may have unique funding needs that are not met by traditional lenders. This trend reflects the growing demand for customized financial services and the recognition of the value that industry-specific knowledge and expertise can bring to the lending process.

Local special circumstances: Belgium has a well-developed financial sector and a strong entrepreneurial culture, which have contributed to the growth of the CrowdLending (Business) market. The country's small and medium-sized enterprises (SMEs) in particular have benefited from the availability of alternative financing options, as they often face challenges in accessing traditional bank loans. CrowdLending has provided these businesses with a viable alternative, enabling them to secure the funding they need to grow and expand.

Underlying macroeconomic factors: The growth of the CrowdLending (Business) market in Belgium is also supported by favorable macroeconomic conditions. The country has a stable and resilient economy, with low interest rates and a supportive regulatory environment. This has created a conducive environment for businesses to seek financing through alternative channels such as CrowdLending. Additionally, the increasing digitization of the financial sector and the rise of fintech companies have facilitated the growth of online lending platforms, making it easier for businesses to access funding. In conclusion, the CrowdLending (Business) market in Belgium is experiencing strong growth, driven by changing customer preferences, favorable macroeconomic conditions, and the emergence of specialized lending platforms. As businesses continue to seek alternative sources of financing, CrowdLending is likely to play an increasingly important role in the Belgian financial landscape.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.