How to Find Alternatives to Person-to-Person Loans

P2P, or person-to-person lending practices and forum are growing as credit becomes tighter for small business owners. These clubs and groups of individuals can be approached about getting a business loan. They will look at your credit and your business and possibly float you the funds in a matter of days. Learn more about how to borrow needed funds without the cumbersome paperwork demanded by traditional lenders.

Instructions

Difficulty: Moderate

1. Use credit cards that give you a good return for your loans, such as air miles and product discounts. Some credit card accounts even give you cash back for some purchases and lines of credit. Set yourself up with a higher repayment structure so as to avoid lingering debt and higher finance charges. But credit cards can work in a pinch and you can usually get same-day money.
2. Talk to the person from whom you are making a purchase if you are buying something from a private individual. You perhaps you can add some interest payments into the total and make some equitable financing terms with the person. Family members are often wiling to float loans in this manner.
3. Approach business people in your community to talk about a loan. Maybe some individuals who would love to be involved in your business, but are not comfortable with the online person-to-person investment community. Look for a handshake kind of man or woman who you see regularly at business functions.
4. Bring your person-to-person offer to your banker in person. Sit down in front of her and tell her you're taking your business online if she cannot match or beat the offer you got from a lending group. Many bankers, especially in small town banks and credit unions, are not familiar with all the options available for small business people with good credit. Local bankers can put a lot of clout behind a loan application to speed it up if they are motivated.