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Which of the following is not a method of alternative funding?Peer-to-peer lendingAngel investingBank loanOnline lending

Question

Which of the following is not a method of alternative funding?

  • Peer-to-peer lending
  • Angel investing
  • Bank loan
  • Online lending
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Solution

To identify which of the options is not a method of alternative funding, let's first define what alternative funding methods generally encompass. Alternative funding refers to sources of financing that fall outside traditional banking systems. Typically, it includes:

  1. Peer-to-peer lending: A method where individuals lend money to one another without the involvement of traditional financial institutions.
  2. Angel investing: This involves affluent individuals providing capital for startups or small businesses, usually in exchange for convertible debt or ownership equity.
  3. Online lending: This is a broad category that includes various forms of lending via online platforms, typically outside traditional banking channels.

On the other hand:

  1. Bank loan: This is a traditional method of funding where individuals or businesses borrow money from a bank, often requiring collateral and a specific credit rating.

Verification

Given the definitions, the correct option that does not fit the description of alternative funding is Bank loan, as it is a traditional financing method rather than an alternative one.

Final Answer

Bank loan is not a method of alternative funding.

This problem has been solved

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