“If you need more finance to grow your business, there are a number of options which you might wish to consider. You could turn to your own personal savings, ask family members for help, get a bank loan, issue shares, or speak to some business angels or venture capitalists. Or you could consider peer-to-peer (P2P) lending.
P2P lending is an alternative to traditional bank loans as a way for SMEs to borrow money to grow their business. In the simplest terms, it removes the bank from the lending process.
Investors lend money to unrelated individuals or businesses – to peers – without the need to go through traditional financial institutions. As opposed to banks setting interest rates, these are often stipulated directly by lenders, or by lending platforms on their behalf.
Essentially, you’re borrowing money directly from people, instead of a company or an institution and are a great alternative for businesses who might have been rejected for a bank loan for any number of reasons.”
For more information, please click here to read Mandy Mitten’s full article, covering where to get P2P loans from, their benefits, drawbacks, and whether they’re a suitable solution for your business.
If you’d like to discuss your options with peer-to-peer lending then please do get in touch with Mandy on 01782 279615.