Peer to Peer business Loans have boomed over the last five years with thousands of individual investors able to invest sums of money across a pool of business ventures. They have challenged the high street banks and are now funding more customers every day.
This type of loan is fairly new to the UK and is classed as alternative finance typically ranging from £5000 to £1 million with a term of up to five years. It is backed by the UK government who themselves have supported the product by investing over £60 million.
The funds are typically drawn down quickly – usually within the same week of applying and there is no fee for early repayments and can be used for many different uses including one off business costs, working capital, asset purchases, property development or commercial mortgage.
A peer to peer business loan is the new alternative way to fund your business. Typically many investors invest small amounts of personal capital into your business for a return on investment equal if not greater than some savings accounts.
By having multiple investors not only does it reduce the risk but enables our peer to peer product to raise the target quickly and deposit funds usually within a week.