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Best Options for Peer-to-Peer Business Loans

Jackie ZimmermannNovember 21, 2019

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Peer-to-peer business loan options include loans from Funding Circle and StreetShares. You'll need good credit to qualify with these lenders.

While shopping for small-business loans online, you’ve likely come across companies that specialize in peer-to-peer business lending.

What is peer-to-peer, or P2P, business lending? Peer-to-peer lenders underwrite borrowers but don’t fund the loans directly. Instead, they’re an intermediary between the borrower and an individual or institutional investor such as a hedge fund or investment bank.

To help you decide if P2P is the best option for your business, we break down two popular options: Funding Circle and StreetShares. These P2P business lenders cater to established small-business owners with good credit. If your credit score falls below 600 and you need an influx of cash, check out our recommendations for bad-credit business loans.

Easily get real, personalized small business loan rates to compare — not just ranges or estimates.

It’s free and won’t affect your credit.

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on Fundera's website

Our pick for

Businesses looking to grow

Funding Circle has no minimum revenue requirement, and with access to higher loan amounts, you can use the funding for growth-related expenses including equipment, renovations and refinancing debt.

Funding Circle - Online term loan

Funding Circle - Online term loan

Est. APR

12.18 - 36.00%

Min. Credit Score

660

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.

Pros

  • Cash can be available within 3 business days.
  • Competitive rates among online lenders.
  • No minimum revenue requirement.

Cons

  • Requires business lien and personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 660.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: None.
  • No bankruptices in the past 7 years.

Easily get real, personalized small business loan rates to compare — not just ranges or estimates.

It’s free and won’t affect your credit.

Get Started

on Fundera's website

Summary of Best Options for Peer-to-Peer Business Loans

LenderBest ForEst. APRMin. Credit Score
Funding Circle - Online term loan

Funding Circle - Online term loan

Best for Businesses looking to grow

12.18 - 36.00%

660

Find and compare small-business loans

NerdWallet has a list of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.

Last updated on November 21, 2019

To recap our selections...

NerdWallet's Best Options for Peer-to-Peer Business Loans