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P2P lending guide
The guide covers the history of peer-to-business lending and why businesses are now choosing peer-to-peer.
Why small businesses are choosing P2P business lending over bank borrowing?
- Small businesses are disgruntled with the banks, who are often unable to lend to some small business because they fail stringent lending criteria.
- Lower interest rates are available partly because P2P business lending platforms don’t have high street branches to run.
- It’s faster –the speed of access to funding and the ease of platform use are valued highly by P2P business borrowers1.
- It’s easier – 91% of P2P business borrowers think it’s an easier way to get funded than traditional channels1.
- There’s no middleman – the individual lenders put money directly into the business using the P2P platform as a tool to do so.
- It’s up to the public if a business receives the loan, rather than a banking institution.
The guide includes all of the leading companies such as Funding Circle, ThinCats, Assetz Capital, Funding Knight, rebuildingsociety, Funding Tree and Funding Empire. It also states that sole traders can also use peer-to-peer providers such as Zopa and RateSetter.
This is an essential read for companies looking to raise capital.