Getting loans for companies does not have to be a headache for those who are still small and want to invest in business.
Through peer-to-peer platforms – also known as P2P – entrepreneurs have access to cheaper, less bureaucratic and fully digital lines of credit.
Never heard of this type of loan and want to know how it works? So, follow a step by step to learn how to achieve these lines and leverage your business!
What is the P2P loan?
The peer-to-peer loan is a type of credit offering in which a platform offers an online channel to facilitate contact between those who want to invest and the legal entities that need money.
Through these sites, investors grant loans to companies and, thus, they can diversify and enhance their investments. In return, entrepreneurs gain by having financial resources available with lower interest rates and less bureaucracy. In other words: the opposite of what happens in large banks.
How to obtain business loans?
To ensure the security of both sides, however, access to credit does not happen overnight.
To obtain business loans over the internet, borrowers must register on online platforms and undergo a credit analysis to assess the risk offered to investors.
If approved, the companies request the desired credit from the applicators also registered on the website. In this way, the loan application will be exposed to all the people who make up the base of the credit service, who will decide who will grant the money.
Therefore, since peer-to-peer is a type of collaborative loan, it happens that more than one person can provide part of the amount required by entrepreneurs.
Therefore, only after reaching 100% will you be able to withdraw the amount earned.
What are the advantages of the P2P loan?
As we said earlier, the P2P loan is collaborative and does not require intermediaries. For this reason, the online platforms that have this service eliminate the high interest charged by banks, which are represented by the bank spread – that is, the difference between the costs of the operation and the amounts paid by the borrowers.
The fact that credit is granted only in the virtual environment also reduces expenses with personnel and physical structure of traditional institutions. As a result, investors have bigger gains and small and medium-sized entrepreneurs pay interest below those charged by the market.
Another practical result of peer-to-peer is the reduction of bureaucracy, since the time for approval of the loan and the capture of credit is shorter, without in many cases there being the obligation to present guarantees to have access to the lines.
Business loans with convenience
And that’s not counting on convenience. After all, it is much better to do everything over the internet instead of going to a bank branch thousands of times, isn’t it?
Do you want to go deeper into the topic and learn how to obtain loans for companies that are more advantageous for your business? Then access the post with the answers to the main questions about the sport!