Peer-to-Peer Lending Platform as a Funding Solution for Small and Medium Enterprises

Abstract

The growth of SMEs is currently growing rapidly, and this growth is also supported by the government by providing convenience to various parties, one of which is the problem of capital for SMEs. The problem of capital is one of the problems that often impede the progress of SMEs. This is due to regulations or bureaucracy that are felt by SMEs to be quite convoluted and eventually these SMEs are entangled with loan sharks for the provision of venture capital. This study aims to see what factors can be used by SMEs to utilize peer-to-peer lending platforms as a funding solution. This peer-to-peer lending platform not only focuses on platform providers but also potential investors who want to invest in SMEs. And of course, there are difficulties in convincing potential investors to invest. Therefore, this study uses a qualitative approach. Where interviews and observations are carried out to SMEs as recipients of funding, potential investors or investors as providers of funds as well as to peer-to-peer lending platforms. This study identifies the ability of peer-to-peer lending platforms as a link between potential investors and SMEs. While peer-to-peer lending is a financial technology that utilizes a platform in the form of a website to be a place of interaction between lenders and loan recipients, but peer-to-peer lending companies will determine and conduct an analysis of SMEs that are eligible to receive funding, so candidates investors will believe and be sure to invest their funds.

Keywords: Peer-to-Peer lending platform, SMEs, Investors, funding.