When you need a business loan fast, alternative finance generally moves quicker than your bank. The best Fintech innovation in recent years has been peer to peer lending (P2P). So what is it? Essentially it’s technology that connects individual lenders with borrowers who need funds. It bypasses the bank system and in doing so cuts down on red tape that can make your wait for approval longer.
There are 2 primary options for applying for a P2P loan in Ireland. BusinessLoans.ie makes it easy for you to apply and get quotes to compare the best P2P business loan deal for you. Generally you will need to supply 2 years accounts, 6 months bank statements and your tax clearance certificate. Then the credit teams will review and give a grade of A, B, C or D and you find out what rate applies. You can expect it to usually range from 6% to 12% and over 1 to 3 years. However, higher risk companies can be considered, for example if they only have 1 year of accounts history. In that instance the rate could be around 15%.
So you may be thinking, those rates don’t sound so great! This is especially true when you compare it to some of the rates the banks advertise. However, most business owners I speak with have already been to the bank and have chosen to keep looking for a variety of reasons. They may say:
My bank is taking too long and I’ve a project that needs finance now
My bank gave me approval subject to conditions; I can’t fulfill them quickly enough
My bank has requested a lot of information and my accountant is too busy; besides I don’t want to outlay all that cash on accountancy work when I’m not 100% sure I’ll even get approval once I’ve given them everything they’ve asked me for
My bank has declined me
With BusinessLoans.ie we aim to get you a few business loan quotes you can compare and our good working relationship with the P2P lenders gives you your approval information generally within 24 hours. On top of this we have other potential options if P2P isn’t suitable. We’re happy to answer any questions you have. Click on the web chat now or call 01 55 636 55