Peer-To-Peer Lenders Shake Up Business Loan Market

The budding online peer-to-peer business lending industry is dangling healthy returns before retail investors and quick loan application processing speeds to advisors and other small business owners seeking loans to expand.

Peer-to-peer lending—also known as “marketplace” lending—operates by having a Web company sell baskets of loans to investors.

While the returns can seem suspiciously high, the largest business-only P2P lender, Funding Circle, promotes prudence by only lending to established firms, said co-founder Sam Hodges, who spoke at a House Small Business Committee hearing on peer-to-peer lending on Wednesday.

Hodges said Funding Circle is focusing on lending to businesses that have been in […] Read more

What’s Best, Crowdfunding Or P2P Lending?

If you are an entrepreneur is desperate need of funds to start or grow a business, crowdfunding and peer-to-peer lending (P2P) offer alternatives – but which is best for your business?

Crowdfunding and peer-to-peer lending are similar business models, but with very different implications for cash flow and profitability.

Which is best depends on the type of business you run, where that business is sitting in the life cycle and whether debt or equity funding is the best bet for funding.

Startups generally look to crowdfunding as raising the cash has no impact on cash flows of a business making little sales or […] Read more