Peer to Peer Lending For Businesses

The peer-to-peer lending model emerged in the second decade of the new millennium. UK innovators created the web lending platform to connect borrowers to individual lenders. Today loans total in the billions of pounds, and the practice is growing in popularity in the US. Borrowers receive comparable terms to traditional lenders, but much quicker and easier. Investors are able to receive reliable returns. Rates and returns can range from ±4% to 10%, or more. P2P makes business lending accessible fast, to a set of business owners underserved by the traditional model.

Funding Circle, named "revolutionary" by mainstream media, and backed by UK government, is one of the most honest and transparent companies for borrowers from the UK & the US, with APR as low as 6%.

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Average Rating 9.5 in TrustPilot, Backed By UK Gov't
Target Audience: All UK/US Businesses; Min. 2 Year History

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Top Lender

The world's most famous Peer to Peer lending for businesses is that for a reason. The quality of service, ease of use, promptness, and of course the low interest make it a superb choice.

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Most Reputable
Target Audience: Small US Businesses

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Superb!

One of the most innovative companies in the domain of business loans, with unique possibilities which are not accessible via traditional cash advance, or traditional Peer to Peer lenders.

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Average Rating 9.2 in TrustPilot
Target Audience: £3000+ Per Month with 20% Margin UK Businessess

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Innovative

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All UK-Facing Companies Featured On This Website Are Approved By The FCA.

How Does the Peer to Peer Business Loan Mechanism Work?


While there are variations, the standard P2P Business lending practice is to acquire a set of qualified investors who want to lend money directly to qualified individuals.

The P2P companies act as brokers, but with much easier terms than traditional bank lending programs. Because there is no middleman and often no shareholders to pay, the rates and terms can be favorable to both lender and borrower, fueling economic growth according to the needs of real businesses.

 What Risk is there Within Peer to Peer Loans?


Like any new financial product, some wonder about the security of P2P. But since its inception, the UK P2P industry has grown to be regulated by the FCA and the SEC (in the US).

How do P2P Companies Hedge Without Securities?


All P2P lenders have some minimum requirements for borrowers, to prevent default, but some are more lenient than others. The most secure brokers provide insurance to lenders against borrower default, but most prevent it from ever occurring by ensuring that businesses can handle the loans that they are issued.

The P2P Boom in the UK and US


With the UK leading the way, the P2P e-commerce market has become the fastest growing lending format in the developed world. UK companies like ZOPA boast nearly a billion pounds in total loans issued, on their own. The US tends to have a different spin on the model, with frequent cash and invoice options appearing in the dozen, but the model is becoming more well known. The UK P2P industry is valued at over £2 billion as of 2015.