What is Peer-to-Peer Lending?

Choose BillPay by Linked Finance to pay off your bill in one lump sum and split the cost across 12 monthly payments.

What is peer-to-peer lending? | Linked Finance

Linked Finance was the first business in Ireland to function as a platform for peer-to-peer lending for businesses and investors alike. Since 2013 we have grown to be the largest peer-to-peer lender in Ireland, deploying over €250 million to Irish SMEs and earning a place among CNBC’s Top 200 Global Fintech Companies.

In this article we will discuss the following:

  • What is peer-to-peer lending?
  • How does peer-to-peer lending work?
  • What types of peer-to-peer loans are available?
  • What types of businesses use peer-to-peer lending?

 

What is peer-to-peer lending?

Peer-to-peer lending, also known as person-to-person or P2P lending, has grown globally since it was first launched in the mid-2000s. Generally, peer-to-peer lending enables a business or individual to borrow money from a wide group of individual investors without the need for a traditional financial institution.

At Linked Finance, peer-to-peer lending provides Irish SMEs with alternative ways to find fast and efficient funding instead of having to turn to the usually slow and cumbersome processes of banks. 

For investors, it is an effective way to earn excellent returns on their investments while directly supporting the growth of Irish businesses and communities around the country.

How does peer-to-peer lending work?

Peer-to-peer lending is an alternative way for businesses to secure funding for all their business needs. Businesses can apply for funding through platforms like Linked Finance and this request will be filled with funds from retail investors using the platform. 

If you receive approval for your loan request, it will be posted on our platform to inform investors and the funding process will commence.

For investors, you can stay up to date on active funding opportunities by checking their Linked Finance account. Depending on your preferences, your funds will be deployed manually or automatically and will earn interest repayments on each investment. 

What types of peer-to-peer loans are available?

In the past few years, the number of peer-to-peer lending sites and the types of loans on offer has grown.

At Linked Finance we provide term loans and merchant cash advances for businesses looking for funding on the platform. Each loan is tailored to each individual business’s needs and requirements. We pride ourselves on supporting each applicant to get the most from the platform so our account managers are always on hand to walk you through the full process.

What businesses use peer-to-peer lending?

We have a wide variety of Irish SMEs using the Linked Finance platform for you to invest in:

  • Cafes
  • Restaurants.
  • Construction.
  • Farms and agriculture.
  • Retail.
  • And many more.  

How to get started?

If you are interested in applying for business financing to make your business dreams a reality, submit your application today starting with just 2 documents, and our account managers will take it from there. Apply here

If you are an investor looking for new opportunities to diversify your portfolio with excellent returns while supporting Irish SMEs, create your Linked Finance account today, here