Peer to peer lending

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xxhaylzxx

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I had at one point looked at getting a bank loan to help me to get a few new things for the salon but it seems a very long process and not always going to happen. I stumbled upon peer to peer lending, I looked at funding circle and so many people saying its so easy to get a loan straight away. Has anybody used this type of loan after being rejected by the bank or just not bothered with the bank?
 
Is this like a Credit Union? If not wouldn't a Credit Union be a better option where you can build up savings too.
 
No peer to peer lending is where you can apply for a loan, Then people bid on how much they can lend you and they make money off the interest, so it's an investment for them too. So you could get they £5000 and 10people could of all put a bit of money towards it to make it up. If that makes sense? Well that's what I've read it as lol. I find loans very confusing. But I have read that it is easier to get a loan with them than the bank. Just having a read into credit unions now :)
 
No peer to peer lending is where you can apply for a loan, Then people bid on how much they can lend you and they make money off the interest, so it's an investment for them too. So you could get they £5000 and 10people could of all put a bit of money towards it to make it up. If that makes sense? Well that's what I've read it as lol. I find loans very confusing. But I have read that it is easier to get a loan with them than the bank. Just having a read into credit unions now :)

I would say that its only very marginally easier. Still super hard. They take into account your credit rating and what you need the money for.

The bonus is the interest % is much lower than a bank but not unless you have perfect credit history.

Without being rude to anyone I can't see it being easy to get peer to peer lending for a beauty business unless your credit rating is amazing. As a lender they will look at it as if to say 'just another beauty/hair salon'. No USP therefore massive risk as the competition is huge with others going bust daily. Also if it's peer to peer and your a sole trader if you do go bust with the loan outstanding you will stay have that loan to pay regardless.

Best way to get a loan is if your a home owner which you can use house as collateral. Without this it's very very hard nowadays.
 
I work in a bank so understand what youre saying.

I would suggest going into your bank and getting a loan quote. A bank will personalise the quote to your personal relationship with the bank.

Also if you have equity on your mortgage, borrowing on this can also work out cheaper.

Youre lucky just now as lending rates are super low. Just be careful not to get sucked in to loan shark schemes and never ever ever do a pay day loan!!!!

Sent from my GT-I9505 using SalonGeek mobile app
 
On an added note, get yourself a quote for essential earnings cover, its a must if youre self employed

Sent from my GT-I9505 using SalonGeek mobile app
 
I tried peer to peer lending and was rejected straight away. My income was not the best and neither was my credit file. I finally got accepted but not sure i can say on here who it was from. Its neither peer to peer or bank or credit union, pm me if you'd like more info. I think interest rate was 14%, higher than banks but i was desperate and the payments have paid for themselves. Pm me if you'd like some info. I wouldnt under any circumstances use my house as collateral!
 

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