If you are looking for small business financing, and have been turned away from big banks, 2015 going into 2016 might just be the right time for you to secure the small business loan you need. The small business lending industry has been shaken up by some new players to the field, and these new players provide small business loans that big banks often walk away from.
2015 has seen the small business lending industry become much more competitive, thanks largely in part to these new players, and some not so new players. The not so new players that are making a big impact is smaller banks.
The other big player to the small business lending field is peer to peer lending platforms. While it is true that big banks have infiltrated peer to peer lending, and that most personal loans made through peer to peer lending are made by big banks on these platforms, private investors still weigh in heavy when it comes to funding small business loans through these peer to peer lending platforms.
These peer to peer lending platforms connect private investors directly with small businesses with much needed working capital. Often times these loans are funded by several private investors, with each investor funding a small portion of the loan, thus spreading out their risk to profit ratio.
The advantages of peer to peer lending include a much quicker turn around time on loan funding, and a much smoother loan process. This is not to say that there is no paper work involved, or that loan funding happens over night, as it does not, but rather that peer to peer small business loans on average have a quicker turn around time than the same loan made through a big bank. For those small businesses with an excellent credit rating, or assets that they are willing to secure a loan with, these borrowers can often times find a much lower interest rate than they ever could have through a big bank. A lower interest rate helps these smaller business owners bottom line.
If you need working capital, and have had a hard time finding a big bank to take a second look at you and your small business, you should consider applying for a small business loan through one of the many peer to peer lending networks available today. If you do not know where to start, we have complied some reviews of the top peer to peer lending platforms that are making small business loans, in an effort to give you a head start. These are among the most reputable peer to peer lending platforms available today, that cater to small business owners needs.