There are so many loan options available in the market with new providers entering the market all the time which includes peer-to-peer loan providers.
Peer-to-peer loan providers are financial providers that generally only offer loans which are funded through investors that participate through their online platforms.
Peer-to-peer lenders provide the bridge between investors and borrowers as well as the mechanisms to support the loan process. Below we have explored what business loans peer-to-peer lenders can offer.
The table below gives a quick comparison of the top UK providers for peer-to-peer business loans.
| Company | Minimum amount | Maximum amount |
|---|---|---|
| Funding Circle | £10,000 | £500,000 |
| CrowdProperty | Not stated | Not stated |
| Crowdstacker | £1 million | £50 million |
| Folk 2 Folk | £50,000 | £5 million+ |
| Landbay | £50,000 | £1.5 million |
| ThinCats | £250,000 | £15 million |
| LendingCrowd | £5,000 | £500,000 |
| ArchOver | £100,000 | £15 million |
* The facts and figures included here come from each company’s website and were accurate at the time of writing but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Note companies are ranked in no particular order and this no way indicates one solution is better than another.
Topics
1. Funding Circle
Some of the features and benefits of Funding Circle’s peer-to-peer business loans.
- Loans designed for a variety of businesses
- Borrow from £10,000 to £500,000
- Terms from 6 months to 5 years
- Unsecured
- Rates start at 1.9% per year
- No early repayment fees
- Simple online application form
- Decisions can be reached in as little as 5 hours
- Suitable for a variety of loan purposes
- Provide a dedicated account manager
Funding Circle is a peer-to-peer lending provider which brings together lenders and investors with the aim of helping businesses to grow. They also utilise funding from the government-owned British Business Bank which has been set up to lend money to small businesses in the UK.
Funding Circle’s business loans offer from £10,000 to £500,000 of funding on terms from 6 months to 5 years. Their loans are provided on an unsecured basis and their rates start at 1.69% per year and they don’t charge early repayment fees. They provide loans to businesses of all sizes for a variety of loan purposes.
2. CrowdProperty
Some of the features and benefits of CrowdProperty’s peer-to-peer business loans.
- Crowdfunding style of finance
- Specialises in property project finance
- Offers quick and straightforward loans
- Transparent terms
- No hidden fees
- Decisions can be made in 48 hours
- Refurbishment finance
- Development finance
- Development exit finance
- Auction finance
CrowdProperty is a crowdfunding style of business finance that offers quick and straightforward loans to property developers and professionals that require property project finance. This includes refurbishment finance, development finance, development finance, development exit finance, bridging finance and auction finance.
CrowdProperty offers investors attractive terms as they provide inflation-beating interest to encourage them to invest and they offer borrowers quick and straightforward loans. Their loans can be turned around quickly and decisions can be made in as quickly as 48 hours. Their loans are transparent with no hidden fees and they can lend up to 100% of the development or refurbishment costs.
3. Crowdstacker
Some of the features and benefits of Crowdstacker’s peer-to-peer business loans.
- Peer-to-peer lending platform
- Borrow from £1 million to £50 million
- Allows you to market your loan opportunity to investors
- Control your own loan
- Competitive rates
- Offer ethical and fair loans
- Transparent terms
- Online platform to manage the loan
- Provide support during the loan process
- Designed to help reduce reliance on bank funding
Crowdstacker is a peer-to-peer lending provider that offers business loans as an alternative to bank funding. Crowdstacker is designed as a crowdfunding style of lender which has an online platform which allows borrowers to market their funding opportunity to investors to attract their funding.
Crowdstacker’s business loans offer high-level investment opportunities that are from £1 million to £50 million. They have designed their loans to allow borrowers to have greater control of their loan. The loans are ethical and fair with transparent terms and competitive rates. They also provide dedicated support and advice to help you through the loan process.
4. Folk 2 Folk
Some of the features and benefits of Folk 2 Folk’s peer-to-peer business loans.
- Loan matching service
- Simple and stress-free borrowing
- Borrow from £50,000
- Terms from 6 months to 5 years
- Secured loan
- Transparent loans
- Offers interest only
- Rates from as low as 0.38% per month
- Funding can be received within weeks
- Suitable for a wide variety of loan purposes
Folk 2 Folk is a peer-to-peer loan provider that assist businesses to find funding for a wide variety of loan purposes. They attract a variety of investors to their platform through their values of being community-minded and supporting businesses in their communities so that they can grow and develop.
Folk 2 Folk’s peer-to-peer loans are available for amounts from £50,000 to over £5 million on payment terms from 6 months to 5 years. Their loans offer rates from 0.38% per month on a secured basis and they can offer interest-only options. They have designed their loans to be simple and be as stress-free as possible for borrowers.
5. Landbay
Some of the features and benefits of Landbay’s peer-to-peer business loans.
- Specialises in buy-to-let mortgages
- Loans from £50,000 to £1.5 million
- Provides a loan to value rate of up to 80%
- Flexible mortgages
- Simple and quick application
- Online form
- A decision in principle can be made in 2 days
- They manage all transactions on behalf of investors and borrowers
- Funding is provided by retail and institutional investors and fund specialists
- Describe themselves as a responsible lender
Landbay is a specialist loan provider that operates as a peer-to-peer lender that provides only buy-to-let mortgages. Their online lending platform is a marketplace which brings together investors, brokers and borrowers to offer funding designed for prime residential buy-to-let mortgages.
Lnadbay’s buy-to-let mortgages offer borrowers from 65% to 80% of the property value. They aim to provide a fast and efficient service with a simple online application form, and they try to provide a decision in principle within 2 days. Funding will be received typically a day after receiving the valuation. Funding is managed by Landbay but the money comes from retail and institutional investors and fund specialists.
6. ThinCats
Some of the features and benefits of ThinCats’ peer-to-peer business loans.
- Bespoke loan solutions for businesses
- Offer working capital loans
- Loans from £250,000 to £15 million
- Terms from 6 months to 5 years
- You may need to provide security
- Growth finance
- Asset purchase
- Acquisition and Management Buy-Out finance
- Refinance
- Will listen to you and understand your business
ThinCats is a peer-to-peer lender that provides funding to businesses in the form of a loan. They offer bespoke loan solutions for small to medium-sized businesses based in the UK for a variety of purposes that include working capital loans, growth finance, asset purchase and refinance.
ThinCats’ business loans offer funding from £250,000 to £15 million on terms from 6 months to 5 years. They may require you to provide security in order for your application to be approved. They obtain their funding from retail and institutional investors. They aim to be a responsible lender and they will listen to your needs and understand what you require.
7. LendingCrowd
Some of the features and benefits of LendingCrowd’s peer-to-peer business loans.
- Fast peer-to-peer loans
- A platform where investors can bid for opportunities
- Loans from £5,000 to £50,000
- Terms from 6 months to 5 years
- Transparent loans
- Low fees
- Interest rates starting from 5.95%
- Decisions can be reached within 24 hours
- Funding can be received on the day the loan is arranged
- Can give you control of your loan
LendingCrowd is a peer-to-peer lending platform designed for business loans. They provide an online site where borrowers can post their loan opportunities for investors to bid against other investors for the opportunity. Borrowers can choose which of the investors to select based on the competitiveness or the offer.
LendingCrowd’s business loans offer funding from £5,000 to £50,000 on repayment terms from 6 months to 5 years. They provide a transparent loan service that offers competitive pricing and low fees. Interest rates start from 5.95%. They can make decisions within 24 hours and funding can be received on the same day that the loan is arranged.
8. ArchOver
Some of the features and benefits of ArchOver’s peer-to-peer business loans.
- Flexible loan solutions
- Borrow from £100,000 to £25 million
- Terms from 3 months to 3 years
- Transparent
- Fixed terms and rates
- No hidden fees
- No early repayment charges
- Choice of secured and unsecured loans
- Personalised service
- Suitable for established businesses
ArchOver is a peer-to-peer lending provider that offers business loans to established businesses that are based in the UK. They provide a platform to connect borrowers with investors which provides investors with favourable returns and secure service. Borrowers are offered a personalised service as they will listen to your needs so that they can understand you better to tailor their loans.
ArchOver’s business loans are available for funding from £100,000 to £15 million over terms from 3 months to 3 years. They offer the choice of secured and unsecured loans on fixed terms and rates that are transparent with no hidden fees and early repayment charges.
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