Peer-to-peer business lending is a relatively new concept – but one that’s growing fast. If a business is searching for a loan, a bank would be the first port of call. The bank will assess your business based on your business plan, credit worthiness, etc. If you are successful, the bank will lend you the agreed amount at a rate of interest set by the bank.
With peer-to-peer business lending, individuals (members of the public) makes their personal money available to businesses. An online platform called a peer-to-peer lender carries out this process.
What advantages does peer-to-peer lending offer?
What advantages does peer-to-peer lending offer investors?
Investors earn a more attractive interest return. It is possible to earn rates of up to 6% after fees and bad debts.
Investors choose their rate of return based on
What criteria apply to a peer-to-peer business loan?
How can my business apply for a business loan?
Applications can be completed online.
Your application will then be assessed by a credit assessment team.
If you are given the green light, your loan request will be posted onto the online marketplace.
What types of peer-to-peer business lending is available?
Business loans range from £5,000 to £1m over a period of six-months, 1, 2, 3, 4 or 5 years, with a fixed rate and a fixed monthly payment.
The level of security required depends on
What are the fees?
Fees vary between 2% and 5% depending on the term of the loan. The fees are deducted from the overall amount a business borrows.
What else do I need to know?
Repayments are made in equal monthly instalments over the allocated time period and there are no early repayment charges.
Years in business | 10 years
Management experience | 50 years
Virgin Sunday Times Fasttrack 100 listing | 3 times consecutively
Non Executive Director of the Year (Private Company) | 2009
Can we help?
If you have any questions or feel we can help with your business finance requirements, we’d love to hear from you.
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