Loanable funds
Collateral
Context (archaeology)
Moral hazard
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Alternative lending methods such as peer-to-peer lending and invoice factoring can provide sustainable financing solutions for creative entrepreneurs. These methods can help address the barriers faced by creative industries firms in accessing traditional funding sources. Peer-to-peer lending platforms, as shown in Teichmann et al., can allocate investments in sustainable projects and businesses, contributing to a low-carbon circular economy. Additionally, Chulawate and Kiattisin highlight the potential of peer-to-peer lending in driving financial innovation and sustainability in developing countries. Furthermore, invoice factoring, as suggested by Hossain et al., can enhance the supply of loans to small and medium-sized enterprises (SMEs) by reducing default risk and improving their access to finance. These alternative lending methods offer opportunities for creative entrepreneurs to overcome the challenges they face in securing funding and can contribute to the growth and sustainability of the creative industries.
Related Questions
What is the best way to finance a new business?5 answersThe best way to finance a new business depends on various factors such as the nature of the business, industry dynamics, and the goals set by the owner-manager. One option is to seek bank finance, which is a common source of funds for new business start-ups. Another approach is to borrow from family and friends, which is a chief source of funds for many new businesses. However, it is important to consider the motives of family members in lending money. Additionally, calculating the initial capital of a new business and considering short- and long-term methods of raising funds are crucial. Taking a partner to raise capital may have disadvantages that need to be carefully evaluated. The determinants of capital structure and types of financing used around business start-ups can also be influenced by factors such as start-up size, asset structure, organization type, growth orientation, and owners' characteristics. Further research is recommended to gain more insights into business finances near the time of creation.How can formal and informal credit be used to support sustainable development in business?3 answersFormal and informal credit can be used to support sustainable development in business by providing financial resources to small-scale enterprises and start-ups, especially those owned by women and younger entrepreneurs. Informal and family credit sources are particularly important for smaller firms, while formal credit is more beneficial for larger firms. Financial institutions can contribute to sustainable development by implementing downscaling strategies and strengthening credit channels for SMEs. This not only supports the growth and inclusion of SMEs but also helps address existing levels of inequality. By providing credit to formalized SMEs, financial institutions can contribute to higher productivity, more equitable growth, and a better income distribution, thus closing the inequality gap. The use of formal and informal credit sources, along with sustainable lending policies, can help identify and support potential borrowers engaged in sustainable business, promoting sustainable development in the business sector.What are the fintech solutions that affect sustainable finance?5 answersFintech solutions that affect sustainable finance include the promotion of sustainable finance through fintech solutions for emerging market economies, such as contactless payment and contract systems, microfinance, and educational content on responsible consumption. FinTech improves the development of green credit through information asymmetry and green credit allocation efficiency, particularly in regions with higher government environmental objectives, small-to-medium enterprises with low carbon emissions, and firms with high external ESG scores. Fintech initiatives like Clarity AI and Pensumo contribute to sustainable finance by promoting green finance and improving the detection of greenwashing and deceptive behavior by firms. FinTechs have a revenue model that is more scalable than traditional banks, making them potential providers of sustainable finance solutions, including microfinance and crowdfunding. FinTech can boost the development of green finance, addressing environmental protection and climate change, and contributing to sustainable growth.Does fintech innovation affect sustainable finance?4 answersFintech innovation has a significant impact on sustainable finance. It improves the development of green credit by addressing information asymmetry and enhancing green credit allocation efficiency. Fintech solutions have the potential to promote sustainable finance in emerging market economies like Turkey, by increasing financial inclusivity, providing contactless payment systems, and improving fintech solutions on payment systems with educational content on responsible consumption. Fintech innovation effectively improves the total factor productivity of real enterprises, promotes their transformation, and upgrades the sustainable development of the real economy. Additionally, fintech can boost the development of green finance, which is crucial for achieving sustainable growth and addressing climate change. Overall, the literature suggests that fintech innovation plays a positive role in advancing sustainable finance and supporting environmental and social goals.What is the relationship of debt financing in economic sustainability of SME’s?5 answersDebt financing has a significant relationship with the economic sustainability of SMEs. Higher growth in SME lending is associated with greater banking system stability, particularly in emerging market economies (EMEs). SMEs in countries with strong property rights that protect creditors and enforce existing laws are more likely to obtain long-term debt. Additionally, the ratio of private debt in corporate financing has a negative relationship with the sustainability of transparent accounting information. This suggests that a high ratio of private debt reduces the matching level of transparent accounting information. It is important to have a diversified banking market in terms of supply and lending technologies to ensure availability for SME financing. Overall, debt financing plays a crucial role in the economic sustainability of SMEs, with factors such as legal environment, institutional determinants, and banking structure influencing the availability and terms of debt for SMEs.How can green finance be used to promote sustainable development?5 answersGreen finance can be used to promote sustainable development by reducing carbon emissions in various sectors such as agriculture. It has been found that the development of green finance significantly reduces carbon emission intensity in the agricultural sector in China. Additionally, green finance can indirectly facilitate carbon emission reduction by optimizing the industrial structure and guiding technological progress in agriculture. Furthermore, green finance has been shown to promote sustainable economic and environmental development in OECD countries. It is recommended to promote green finance by establishing a solid green financial market and system, especially in underdeveloped areas. Green financing and renewable energy have also been found to have a positive impact on the tourism industry, contributing to sustainable tourism. Overall, green finance plays a crucial role in achieving sustainable development by addressing environmental challenges and promoting sustainable economic growth.
