Peer To Peer Lending- A Great Way To Fund Your Business Online!

peer 2 peer lendingAmong the different types of small business loans that you will find online, one of the most popular ones is the peer-to-peer loan. It is also known as Marketplace lending. The basic concept behind this loan is that you do not get the loan directly from the lender. There is someone intermediate between the two who helps in the process.

The process involved in peer-to-peer online loans is somewhat similar to the other types of online loans available in the market. However, the benefits that you can get are somewhat similar. The percentage rates are higher as compared to the others that are given by the banks.

Here are the various places where you can apply for peer-to-peer loans:

  • Funding Circle: This is a wonderful option for good-credit business. The businesses that are already established and require funding to strike deals or improve in certain areas can surely opt for this.
  • Lending Club: This is another organization that has made a great reputation for itself in online lending. In order to qualify for this you will require 600+ credit scores. You also need to be in the business for at least one year.
  • Street Shares: Businesses with comparatively lower revenue of at least $25000 can apply here.

The unique thing about peer-to-peer loans- the smaller your business is more is your chance of getting larger amounts as loans.

Here are two things regarding peer-to-peer online loans which every business owner should follow:

  • Always try to have a diversified group of lenders. Make sure that all your lenders do not belong to the same place.

While borrowing this type of loans you should keep your common sense intact so that you do not face any troublesome situation.

The Lowdown

The LowdownAre you in a tight financial bind? If so, cash loans may be a good solution. Before you jump in and take out one of these loans, however, it is important that you fully understand their advantages and disadvantages. Here is a quick rundown of the pros and cons of these short-term loans:

Pros

* Fast cash. When you find yourself facing a sudden emergency such as an infected tooth, a broken down vehicle, or bill that needs to be paid right away, having the ability to borrow money so you can deal with the situation can be a really great thing.

* No credit check. Anyone with bad credit can tell you that trying to get a loan from a traditional bank is practically impossible. Cash loans, on the other hand, typically don’t require a credit check. Instead, all you need to do is prove that you have a job and a bank account.

Cons

* Short repayment terms. Most of these loans need to be paid back within just a few short weeks. There is no guarantee that you will be better off financially by the time the loan comes due than you are now. Adding a loan payment onto your other expenses when you were already stretched to the max financially can leave you in a real bind.

* High interest rates. Lenders know that people who use these loans are typically desperate for money. They take advantage of this by tacking on huge interest charges or fees. That means that you may have to pay back far more money than you actually borrowed.

Before taking out a cash loan, you need to carefully consider whether or not there are any other options available. If you do wind up borrowing money, make sure you have a plan in place for how you will repay it.