How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here is 1 peer to peer business loan
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
Funding Circle - Online term loan with Fundera by NerdWallet | 4.5/5 Best for P2P business loan | $500,000 | 660 | with Fundera by NerdWallet |
Here is 1 peer to peer business loan
Best for P2P business loan
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Our pick for
P2P business loan
Funding Circle business loans are backed by professional investors. That makes these loans tougher to qualify for than other P2P options, but they come with larger loan amounts — up to $500,000 — at low APRs compared to other online lenders.
Funding Circle - Online term loan
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
Cons
- Requires business lien and personal guarantee.
- Must be in business for a minimum of two years.
- Minimum credit score is higher than some other lenders.
Funding Circle - Online term loan
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
Cons
- Requires business lien and personal guarantee.
- Must be in business for a minimum of two years.
- Minimum credit score is higher than some other lenders.
Qualifications:
- Minimum credit score: 660.
- Minimum time in business: Two years.
- Minimum annual revenue: $50,000.
- No bankruptcies in the past seven years.
Best peer-to-peer business loan options
Funding Circle: Best for established businesses
Kiva: Best for micro-businesses
Honeycomb Credit: Best for businesses with established customer bases
Prosper: Best for new businesses
What is a peer-to-peer business loan?
P2P business loan pros and cons
Pros:
- 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.
- 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:
- 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.
- Potentially small loan amounts. While Funding Circle 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 you need fast funding: Online business loans can usually be funded in a matter of days. They tend to charge higher APRs than P2P business loans, but you may be able to qualify for financing 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 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.
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.