Since 2005 Peer to Peer lending has grown significantly and is now a popular choice for many new businesses. For people who have not taken out a loan before a Peer To Peer loan can be the perfect solution as it allows you to take advantage of lower rates and save you money. With it becoming harder to get a loan from the bank, you could get an attractive P2P loan to help start your first business and with over £300 million being lent out already there is definitely no shortage in demand.
Peer to Peer lending is aimed at lending money to new entrepreneurs who want to start-up a business but need funding to help them get started and also small business owners who are looking to expand. The loan is made out to the individual instead of the business and Peer to Peer lending websites link those wanting to lend money with those who are looking to borrow. If you have a good business idea but you are short of funds then it will be worth checking out Peer to Peer lending sites such as Folk 2 Folk who have helped many start-ups in the devon and Cornwall area. Popular sectors for P2P lending include the construction industry and the leisure industry.
A Peer to peer loan is more flexible and easy to get than going to a bank to try to take out a loan and unlike with banks, Peer to Peer lenders are looking to invest as much money as they can into small businesses to help them expand. Furthermore you can often get hold of a Peer to Peer loan a lot faster than with a bank loan so you can get the money when you need it. By linking up lenders with borrowers Peer to Peer lending can also boost the local economy which is good news for everyone.
The video from YouTube below demonstrates how Peer to Peer lending works and why people want to take out a Peer to Peer loan instead of going to the bank. As well as this there is also an example of how Laura Morrish has been able to expand her fitness business to its own purpose-built facilities after taking out a Peer to Peer loan.
If you are looking to expand your start-up business idea in the future then it is well worth looking at a Peer to Peer loan and seeing what benefits you can gain instead of going to the bank. Just remember if you cannot get a loan from a high street bank then a Peer to Peer loan could be the best option for you.
