Name: Krishna Kumar TP, Vishnu VR, Arshitha MA, Nithyasree KA, Shibin Muhamed K & Sahal TA
Country: India

Year: 2026
Volume: Volume No: 13, Issue No: 1, Year: 2026
Page Number: 227-237
DOI: https://doi.org/10.5281/zenodo.19629699

ABSTRACT
Crowdfunding and Peer-to-Peer (P2P) lending have emerged as powerful alternative
financing channels for corporations in response to the limitations of traditional bank-based and capital market financing. These digital platforms leverage financial technology to directly connect firms with a broad base of individual and institutional investors, thereby enhancing access to capital, reducing intermediation costs, and increasing funding speed. Crowdfunding enables corporations, particularly startups and small and medium-sized enterprises (SMEs), to raise equity or reward-based funding while simultaneously validating market demand and building customer engagement. P2P lending, on the other hand, allows firms to secure debt financing through online platforms that match borrowers with lenders using algorithm-driven credit assessment and risk pricing models. These alternative channels promote financial inclusion by supporting firms that may be underserved by conventional lenders due to lack of collateral, short operating histories, or higher perceived risk. Furthermore, data analytics, blockchain, and automated credit scoring improve transparency, trust, and operational efficiency within these platforms. However, regulatory compliance, investor protection, credit risk management, and platform stability remain critical challenges. Overall, crowdfunding and P2P lending represent a structural shift in corporate finance, enabling more decentralized, technology-driven, and market-oriented funding ecosystems that complement traditional financial institutions.

Keywords: Crowdfunding, Peer-to-Peer Lending, Alternative Finance, FinTech, Corporate
Financing, SMEs, Digital Platforms