A closer look at the best peer-to-peer business loan options
iBusiness Funding: Best for established businesses
iBusiness Funding (formerly Funding Circle ) is an online lender that offers peer-to-peer term loans of up to 60 months. Its qualifications are similar to those of banks and other online lenders — you’ll need a credit score of at least 660 and at least 24 months in business to get a loan on this platform. But funding can be available in as little as two days, faster than most bank loans; and APRs range from 22.45% to 50.24%, lower than many online lenders. You may be able to borrow up to $500,000.
P2P loans from iBusiness Funding may be a good fit for highly qualified borrowers who don’t want to wait on bank funding.
Kiva: Best for interest-free loans
Kiva combines peer-to-peer lending with crowdfunding. You can borrow up to $15,000 and repay it over as long as 36 months. Kiva doesn’t charge interest, so your investors won’t make a profit. You’re ineligible if you’re currently in bankruptcy or have been convicted of a violent or financial crime in the last five years.
Peer-to-peer business loans from Kiva are more accessible to new businesses than more traditional financing. If you have a spotty credit history, less than a year in business or uneven revenue, it’s possible a P2P lender like Kiva can help you get funding when a financial institution can’t.
Honeycomb Credit: Best for businesses with established customer bases
Honeycomb Credit also offers loan crowdfunding, with loans between $25,000 and $500,000. The first hurdle to qualifying is the size of your social media platform — it recommends you have at least 500 followers to raise money on Honeycomb. Plus, the bigger your audience, the easier crowdfunding can be.
To apply, you’ll also need business financial statements, tax returns and a business plan, and everyone with more than a 20% stake in the business has to undergo a background check. Honeycomb sets borrowers’ loan terms based on their applications. Unlike Kiva, Honeycomb charges posting and origination fees, and you’ll have to pay interest on borrowed funds.
Prosper: Best for new businesses
Prosper is a peer-to-peer personal loans marketplace that offers loans to borrowers with credit scores of 560 or above. You can enter basic financial information on Prosper’s website to find out whether you’ll qualify for a loan before facing a hard credit pull. Because these aren’t business loans, the platform will probably focus on your personal financial history when deciding whether you qualify — which could make it a good fit for startups or businesses with uneven revenue histories. However, Prosper’s maximum loan size is $50,000.
Should you get a peer-to-peer business loan?
A peer-to-peer business loan may be a good option if you:
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Don’t qualify for a traditional loan.
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Have fair credit or less than two years in business.
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Want investors who are personally invested in your success.
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Are open to borrowing smaller amounts to get started.
Not a fit? Jump down to learn more about alternatives. What is a peer-to-peer business loan?
Peer-to-peer business loans are small-business loans made by individual or private investors, not financial institutions like banks. You’ll typically get P2P business loans via a third party that acts as an intermediary — handling application and disbursement for borrowers, and collecting funds from investors. In some cases, as with iBusiness Funding, those may be institutional investors such as a hedge fund or investment bank.
In other cases, peer-to-peer loans are similar to crowdfunding. For loans via platforms like Kiva, individual investors chip in small amounts toward a borrower’s total loan amount. The business owner pays investors back over time, but these individuals may be more focused on supporting a business than maximizing returns as an institutional investor might be.
Peer-to-peer lending is more common for personal loans compared with business loans. You can use a personal loan to fund your business idea , but rates may be higher than other forms of financing. Pros and cons of P2P business loans
Pros:
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Less stringent qualifications than banks. If you have fair credit or less than two years in business, you may have an easier time qualifying for a P2P loan than a bank loan — particularly from a lender like Kiva or Honeycomb Credit, which operate more like crowdfunding platforms.
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On crowdfunding platforms, lenders are invested in your success. In order for the people who support your business to recoup their investments — perhaps of their own money — your business needs to last. That may be enough to spur your funders to talk about your company locally or on social media to help grow your customer base.
Cons:
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Higher APRs than banks. If you have good credit and a history of consistent revenue to qualify for a P2P business loan from an institutional investor or crowdfunding platform, you may be able to find a more affordable business loan at a bank or credit union.
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Potentially small loan amounts. While iBusiness Funding offers six-figure loans, it may be more difficult for small businesses to qualify for large loans from other P2P lenders. Honeycomb Credit ultimately determines borrowers’ loan terms, Prosper’s maximum loan amount is $50,000 and Kiva’s is just $15,000.
Alternatives to P2P business loans
If peer-to-peer business loans aren’t the right fit for you, consider the following:
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If you need fast funding: Online business loans can usually be funded in a matter of days, and some of them require nearly no documentation to apply . They tend to charge higher APRs than P2P business loans, but you may be able to qualify even if you have bad or fair credit. -
If you’re a very small business: Microloans , which are often issued by community development financial institutions (CDFIs) can help borrowers who need $50,000 or less. -
If you don’t qualify for traditional financing: Crowdfunding can help you raise money from investors and supporters. There are several different kinds of crowdfunding, so you’ll have to choose between giving investors equity in your company or offering a different unique perk. Invoice financing is another alternative type of lending that relies more heavily on the value of unpaid customer invoices rather than things like business financials or personal credit. -
If you’re looking for the least expensive option: Another way to avoid taking on debt is by finding small-business grants . Many local governments and corporations offer grants, even for startups . Though they can be difficult to find and usually don’t give large amounts, avoiding the cost of interest can be worth it in the long run.
Last updated on August 10, 2026
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