Putting sleeping money to work using crowdfunding is now catching fire in Japan. When banks won’t lend, some have turned to seek funding from the crowd.
Although not big stock market investors, the public is being enticed to lend money to small companies with “annual returns ranging from 2% to 10%, with the average at 5%. Investors are repaid over a few months, or as much as a few years.”
Crowdfunding in Japan is still small, estimated to be only about $80 million in 2013. Small lenders appear to welcome crowdfunding platforms like Crowdbank.jp as a way to fill the gap when the banks will not/cannot lend to small businesses.
See the Wall Street Journal article here: http://online.wsj.com/articles/crowdfunding-gains-ground-in-japan-1403794141