Many people dream of taking their great idea and turning it into a thriving business, but it’s rare that a great idea alone will convince an investor or lender to take a chance on you.
P2P lending is an alternative business loan solution that lets you borrow money from other people.
Peer-to-peer lending allows you to borrow money from multiple investors rather than a single lender or financial institution. Some P2P platforms may even allow lenders to compete with one another to make loans.
Peer-to-peer lending marketplaces use fintech to match would-be investors with would-be borrowers who are seeking various types of loans. The platforms can help perform the following tasks: collect and process a loan application from the prospective borrower; facilitate a credit history and credit score check; and fund loans.
P2P loans come at a cost, and the P2P platform may charge supplemental fees. The loans are not FDIC-insured, so investors may face an added degree of risk, but they may also enjoy higher returns than you’d receive from FDIC-insured CDs or savings accounts.
If you’re wondering whether a peer-to-peer loan could work for your business, review your credit reports and scores. You can access your credit reports for free once every 12 months.
Next, make sure you can afford a new business loan, shop around and compare P2P loan offers from multiple companies, and consider other types of small business loans.
Current P2P Marketing Places:
Free Quote for Other Types of Small Business Loans:
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