Getting a business loan? 3 things to know


As more business owners turn to different crowdfunding sites to explore their small business funding options, take a look at three things you need to know before applying for a peer-to-peer (P2P) loan.

1. Time is money

One of the biggest advantages crowdfunding sites have is their lack of assets. Fintech companies employ the best in technology innovation, allowing for snappy decisions. Your whole P2P loan application can be processed in under 72 hours and the money there to spend in two weeks. Compare that to waiting months for the bank to shuffle around paperwork before potentially saying “no”, and the business maxim, time is money, takes on a whole new meaning.

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3. A more natural way of borrowing

While banks use clunky barometers to judge an application, crowdfunding sites utilize modern, flexible and holistic approaches to gauge your business’s creditworthiness. With banks, loans can be rejected based simply on the sector they operate within, whereas private lenders work with their own unique ‘risk appetite’; these established lenders may well have been in the same position as the SME they are lending to. You still need a healthy credit score, but remember that loan applications are judged on factors such as real-time cash flow, less tangible qualities like your passion and understanding of market opportunities and thoroughly modern forecasting methods such as social media activity. Statistics show around 50% of first-time business loans are rejected by banks, a blow to a fledgling start-up’s confidence. By choosing real people, free to make up their own minds on how to invest, your small business funding options expand. Before you apply for a P2P loan, get your finance status healthy and up-to-date, but also get ready to talk about how capital will allow your business to flourish. With P2P funding, it’s all a bit more natural

3. Shop around

With all that extra time freed up through a guaranteed rapid response, you can afford to check out which of the small business funding sites match your needs. Prosper is a great option for businesses who need a smaller amount of capital, ($35,000 or less) whereas Funding Circle is available in all fifty states and may be better suited for those who want to borrow up to $500,000 and have bigger revenues to match. Each P2P lender will have slightly different conditions, so search out the one that’s right for you. is the world’s first P2P comparator website, providing the US and Europe with extensive industry information. We offer advice on how to realize your dreams through the world of P2P lending. Our powerful search engine allows you to fine-tune your search criteria, matching your needs with the most suitable lending platform.

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Ella is passionate about travelling and has a background in Chinese Medicine, nutrition, horse riding and film-making. She loves to take an active role in information sharing for beneficial causes. She has researched into and written for the alternative finance industry, contributed to websites that research ancient sites, shared her journeys with the travel industry and written SEO and content for car hire and fast food companies.