Peer 2 Peer Loans

The Peer 2 Peer loans market is less complicated than it sounds!

They are simply lending platforms which help support your business where the traditional banks and asset based players can’t help. Your business will be assessed based on historic accounts and therefore ability to repay. The owners of the business will always be required to give a personal guarantee for the amount of the loan.

The funding from these platforms comes from a mixture of investor’s money for which they receive interest. These investors have no input into loan decisions so it is not a lending marketplace as you would be led to believe by all the advertising hype. Getting a loan for your business is never quite as quick and painless as the marketing material would have you believe either!

Because these types of loans are the most risky for lenders, sitting behind traditional bank secured positions, the cost of these loans will always be higher than the more traditional forms of finance.

The platforms have done a great job in getting funds out to businesses where the banks were unable to help and there are so many providers out there now that as a borrower, you really do have a lot of options to consider. We know all the main players and the costs do vary considerably from lender to lender.

That is where we come in by advising on the most appropriate finance structure for your business. P2P may be part of the structure, it may not. Our expertise is independently assessing and identifying the most appropriate, cost effective, solutions for your business.

Get in touch by calling 07746 115 189 or emailing simon@sjtadvisory.co.uk