Peer-to-peer business lending
Borrow from many individual and institutional investors through an online lending platform regulated by the FCA, instead of from a single bank.
- Secured on assets
- Personal guarantee likely
How it works
Peer-to-peer (P2P) lending, also called loan-based crowdfunding, matches businesses that want to borrow with investors who want to lend, through an online platform.
- You apply online with details of your business, how much you need, what it is for and for how long. You may need to provide bank statements and filed accounts.
- The platform runs credit checks and presents your loan to investors, who each lend a part of it. Some platforms use auctions where investors bid on rates. Others set a fixed rate.
- On some platforms a decision can be almost instant, and the money can arrive within a couple of days.
- You may pay the platform an arrangement fee, then repay with interest in regular instalments.
Loans can be unsecured (based on cash flow) or secured on assets.
Upsides and downsides
Upsides
- Fast online applications and decisions
- An alternative if banks say no
- Many platforms, with different risk appetites
Downsides
- Rates can be higher than bank loans for riskier businesses
- Arrangement fees on top of interest
- Your loan is only made if enough investors fund it
Risks
- Losing assets given as security, or being liable under a personal guarantee
- Missed payments can damage your credit record
What it costs
- How it is priced
- Interest plus a platform arrangement fee
- Costs that are easy to miss
- Platform arrangement fee
- Personal guarantees on some unsecured loans. Check the terms
Varies between platforms, from small to large loans.
Have a quote? True cost of a loan: work out the APR-equivalent and total cost
Does it fit?
Could fit when
- You have a trading record and want a quick decision
- Your bank has turned you down or is too slow
Unlikely to fit when
- You can get a cheaper bank or government-backed loan
- You have no trading history
Who can use it
- Business types: Sole trader, Partnership, Private limited company, LLP, Public limited company
- Needs sales (revenue)
- Platforms ask about turnover, profits and trading history, and run credit checks
- Each platform has its own risk appetite, so a rejection from one does not mean all will say no
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all alternative and fast debt
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- Filed accounts
- Bank statements
- Clear loan purpose
Regulation and protections
Peer-to-peer platforms in the UK are regulated by the FCA. Check the platform on the FCA Register before you apply.
Types of provider: FCA-authorised peer-to-peer lending platforms.
Also consider
Sources
- British Business Bank: Peer-to-peer lending · checked 7 October 2026
- FCA: Crowdfunding · checked 7 October 2026