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Does peer to peer lend the best choice for small business funding?

If your small business needs a loan, but does not have a credit profile that wins instant approval from the Bank, the next step usually applies to alternative funding sources such as colleagues to peer loans.You can also take best peer to peer lending companies services via https://crowdfunding-platforms.com/.

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Instead of applying for established financial institutions for loans, you make a proposal to borrow from individual collections that, if they accept your offer, subscribe to your loan request in the amount of $ 25. In return for their risk taking, it receives an interesting rate of return. Their money based on your credit profile as determined by the company that manages the loan platform – prosperous or lends trees for example.

Qualify for loans

Although the results of loans can be used for any purpose relating to your business, loans are carried out personally and do not take into account your business assets or cash flows. Because personal credit history is the only criteria used to determine the feasibility of the credit, the rejection rate of up to 90% is common for most peer peer lenders.

Time agreement

While traditional loan sources such as banks or credit unions take up to one month to approve (or reject) your loan requests, most loans peer to peer employ software "Automatic Decision Making" that receives or rejects your loan application almost instantly. After approval, most loans peer to peer can fund your request in just five days.