Borrowing? Consider Your Peers

We can probably all agree that taking out a small business loan is right up there in popularity with root canals and public speaking. Financial regulations and loan costs have forced many banks out of small business loans, making Main Street dreams increasingly difficult to achieve. But if you're in the market for a lender, there are solid reasons to consider traditional banking alternatives.

Peer-to-peer (P2P) lending, which takes investors straight to the source to invest in small business and personal loans, might be an option. Advantages include:

• Application to approval can happen in hours, not days or weeks.
• Approval rates are around 60 percent.

Still unsure? You're not alone. Finance expert Joseph Hogue, of peerfinance101.comsays the online nature of peer lending scares some borrowers away. "Peer lending is no more risky for borrowers than any type of loan from a bank or other company. Credit is a tool to accomplish things you wouldn't otherwise be able to afford. Like any tool, it can build you up, but it can also smash your fingers if used incorrectly. With a little financial sense and financial responsibility, peer loans can provide you with the money you need to reach your financial goals and dreams."

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