Peer To Peer Business Loans

Applying for one of these loans still requires that you meet the lender s eligibility criteria.
Peer to peer business loans. Though it s growing fast peer to peer lending is still a new financial business practice in the us and around the world dating back as recently as 2005 uk and 2010 us. Similar to p2p personal loans p2p business loans are funded by individual and institutional investors through a lending platform. P2p loans are funded by an array of investors and businesses and there s a chance not all of them will be interested in your business or product so you could fall short of your desired amount. Typically if a business is searching for a loan a bank would be the first port of call.
Peer to peer business lending is often easier to qualify for and offers lower interest rates than financing through traditional lenders. A peer to peer p2p business loan is a financing product where the funding comes from a group of investors rather than a traditional lender. Instead they re an intermediary between the borrower and an individual or institutional investor such as a hedge. Instead of going into a bank or credit union for a small business loan business owners can visit a p2p lender online and submit an application in a matter of moments.
You would be assessed on the basis of your business plan credit worthiness and other criteria and if successful lent the agreed funds at a rate of interest set by the bank. Peer to peer business lending is a relatively new concept but one that s growing fast. Peer to peer lenders underwrite borrowers but don t fund the loans directly. Peer to peer business loans can be a great source of funding for those businesses that can t quite qualify for a traditional loan but still want a competitive interest rate.