Peer to Peer Commercial Loans

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The peer-to-peer lending market has seen phenomenal growth since 2010 and is now a mainstream source of finance for UK businesses. With the middleman cut out, rates can be far more competitive that you would get at a bank so its popularity is not hard to understand. There are many options available to SMEs from various providers and at Choice Loan we deal with all the major commercial peer-to-peer providers and can guide you as to which is best for you. The main players are:

Funding Circle:

• Good for straight forward deals for limited companies that have been trading profitably for 2+ years and have a Fair-to-Good credit score
• Up to £100,000 unsecured available
• Up to £500,000 secured (or for asset finance)
• Online auctions see investors compete to offer you better terms
• Loans can pay out in a matter of days
• Rates from 5.5% - 9.5%
• Fees are either 3% (1 and 3 year loans) or 4% (5 year loans)

ThinCats:

• Good for slightly more complex deals that don't necessarily meet the Funding Circle criteria as you have more of an ability to "tell a story"
• Also good for large deals with several million potentially available
• Security must be provided for all deals
• All deals are prepared by Sponsors who then monitor the company's performance thereafter and provide business assistance
• Loans take a little longer to process than with Funding Circle
• Rates generally 8-13%
• Fees circa 4%

Other newcomers include:

Funding Knight - Unsecured loans up to £100,000 over three years, customisable and can include payment holidays at the start

ReBuilding Society - Unsecured loans up to £50,000 over five years also available to partnerships

And as time goes by we expect to see more entrants to this market but at Choice Loans we see it as our job to be familiar with all of them such that we can best advise you which is most suitable for your business. To chat about your peer to peer options (which also include peer to peer personal loans and invoice finance options) either call us on 0845 126 0350 or complete the form opposite and we'll call you

Peer to peer commercial loans