Among 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.