Small businesses are still struggling to access finance via traditional means, despite the more positive economic outlook, which should comes as no real surprise for anyone who has been following business lending figures over the last few years. There has only really been one trend when it comes to high bank lending figures, and that has unfortunately been downwards. And according to the 2014 Small Business Success Study, small business owners view commercial loans as a less desirable funding choice.

Peer-to-peer lending offers an alternative to small business, where people and organisations can directly lend to small businesses helping the economy to grow. Businesses can access fast, fair and transparent finance, and investors can earn attractive returns. The infographic below illustrates how peer-to-peer lending works for small businesses, and how this compares to a more traditional bank loan which can often be a more complex process and can take as long as 15 – 20 weeks. In comparison, businesses who borrow through peer-to-peer lending platforms typically access finance within two weeks.

Small Business Funding Peer to Peer Lending or Bank Lending? image FC P2PorBank info Final2

For more information on peer-to-peer lending visit https://www.fundingcircle.com/blog/2014/07/time-take-peer-peer-loan/