CrowdLending (Business) - Bolivia

The Crowdlending (Business) market market in Bolivia is expected to see a total transaction value of US$28.42k by 2024.
When compared globally, it is evident that China leads with a transaction value of US$16bn in 2024.
Bolivia's CrowdLending market in Capital Raising is gaining traction among local businesses seeking alternative funding sources for growth and expansion.

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 Bolivia has been experiencing significant growth in recent years, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Bolivian businesses have shown a growing interest in CrowdLending as a source of financing. This can be attributed to the ease and convenience of accessing funds through online platforms, as well as the flexibility offered by CrowdLending in terms of loan amounts and repayment terms. Additionally, businesses in Bolivia are increasingly looking for alternative financing options due to the challenges associated with obtaining traditional bank loans, such as stringent eligibility criteria and lengthy approval processes.

Trends in the market: One of the key trends in the CrowdLending market in Bolivia is the emergence of specialized platforms catering specifically to the needs of businesses. These platforms offer tailored services and features that are designed to meet the unique financing requirements of businesses, such as higher loan amounts and longer repayment periods. This trend has contributed to the overall growth and development of the CrowdLending market in Bolivia, as it has attracted more businesses to explore this alternative financing option.

Local special circumstances: Bolivia's business landscape is characterized by a large number of small and medium-sized enterprises (SMEs), which often face challenges in accessing affordable financing. CrowdLending has emerged as a viable solution for these businesses, as it provides them with access to capital that may not be available through traditional channels. Furthermore, the informal nature of many businesses in Bolivia makes it difficult for them to meet the strict requirements imposed by traditional lenders, making CrowdLending a more accessible and flexible option.

Underlying macroeconomic factors: The development of the CrowdLending market in Bolivia is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has created a favorable environment for businesses to seek financing for expansion and investment. Additionally, the increasing penetration of internet and mobile technologies in Bolivia has made it easier for businesses to access CrowdLending platforms and apply for loans online. These factors have contributed to the growth and development of the CrowdLending market in Bolivia. In conclusion, the CrowdLending (Business) market in Bolivia has been growing rapidly due to customer preferences for alternative financing options, the emergence of specialized platforms catering to businesses, the unique circumstances of the local market, and favorable macroeconomic factors. As more businesses in Bolivia recognize the benefits of CrowdLending, it is expected that the market will continue to expand and evolve in the coming years.

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.