More from business loans
Last updated: 30 March, 2021
Peer to peer business lending is a source of finance that's growing in popularity in the UK. Business looking for funding are matched with lenders via online platforms or through brokers offline.
Businesses are usually required to complete an online form and answer questions about how the loan will be used, the size of the loan and how long you need it for, along with company information.
Certain P2P platforms can make decisions made instantly and the loan provided in as little as a couple of days.
After that P2P business loans works just like any other loan and you make fixed repayments for the duration of the loan term.
Peer to peer business lending sometimes offers more flexible options in terms of the APR you are offered and the amount of money you can borrow.
Although it depends on the borrower you choose, P2P lending can often allow you to borrow more than you might be able to with more traditional credit or loan providers.
Find out more about how peer to peer business loans work
The best P2P business loans offer a low APR for the amount you need to borrow and term that allows you to afford the monthly repayments.
This comparison shows the loan terms that each P2P business lender offers, and the amounts you can apply for.
To find out the APR offered by each lender, visit their website by clicking on the loans above and compare as many as possible to find the cheapest rate.
You can usually get a lower APR compared to other business loans, but not every business will be eligible to apply.
For example, some lenders will not accept your application if you are a start-up business, or have been trading less than a year.
Some lender's may also expect your business to have a minimum annual turnover, e.g. over £75,000, so make sure you check each lender's loan criteria before you apply.
You can use a P2P business loan for most business expenses, including:
Wages: have the cash available to pay your staff for a short time
Rent: cover the cost of keeping your business running at its premises
Equipment: cover the cost of replacing or repairing broken equipment, or to buy equipment you do not already have
Check you can borrow money for your business expenses before you apply to avoid making an unnecessary credit application.
To be eligible to apply for a business loan, you usually need to be the owner of the company or a registered company director.
No, you have to make each loan payment each month or you could face large interest penalties.
Some lenders require you to have a business account with them to qualify for a business loan, but some may be more flexible so ask before you apply.
Yes, you can find it using a company like Experian. A poor credit record can cause your loan application to get rejected, so check before you apply.
We include peer to peer business loans available directly from lenders and through brokers on our panel. Here is more information about how our website works.
We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.