Finding Private Lending Outside of SBA Small Business Loans

SBA loans

Are small business loans becoming more available?

Ever looked at getting SBA small business loans to start your business idea?

You may have found it difficult to qualify for these types of business loans. That is without having someone who is familiar with it walk you through the process. Even with a great credit score SBA loans have a lot of paperwork. More and more people are turning to private lending sources outside of banks and commercial business lenders to accomplish their financing.  This is especially true in the wake of the crisis recession a few years ago.

One such way is peer to peer lending.

How Fast P2P Loans vs. SBA Small Business Loans Work

A peer to peer online money lending website like lendingclub.com starts by asking you what your loan is for (business, car loan, debt consolidation, wedding expenses, etc). Then you are asked to complete a credit check online. The credit check is used to develop a credit risk rating for you in a similar manner as that of banks. Your credit score and profile along with your debt to income ratio (DTI) is then used to determine the interest rate you will be given for the loan you receive.

Who Loans the Money For These Small Business Loans?

The neat twist to the peer to peer lending concept is that private people open an online account as investors and the money is borrowed directly from them. A group or pool of investors lends the money for each loan so that no single investor is lending the whole amount. This group concept keeps any single investor from losing big if one of the loans goes into default. The tiny buy-in amount from each investor also keeps online lenders like Prosper.com from making investors angry because of bad returns.

SBA small business loans for women cash loans

SBA Loan Alternatives

Have you ever thought about using a site like this to accomplish your small business cash loans or to meet your investing goals? If so, let us hear from you. If not tell us why you would not try it.

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