Peer-to-peer lending

P2P finance can provide an alternative source of borrowing for a business that finds conventional bank finance difficult or unattractive. The loan still has repayment, interest, fee and default terms, and may require security or guarantees. The platform's screening does not eliminate credit risk for lenders or repayment obligations for borrowers. Compare total cost, maturity, flexibility, covenants and platform dependence with other finance. Some platforms use institutional funding or structures that differ from direct individual-to-business lending, so examine the actual arrangement.