Peer-to-Peer Lending: What Small Businesses Need to Know About this Alternative Financing Option

As a business and finance expert, I have helped many small- to middle-market companies secure financing through alternative lending solutions that are both intelligently structured and affordable. As someone who has been on both sides of business funding, I know that qualifying for traditional bank or cash-flow loans remains a challenge for many businesses in the current economy.

There's been a lot of buzz lately about peer-to-peer lenders, especially as companies don't know where to turn to for funding as the banks say “No”. While I’m not an expert in the peer-to-peer lending space, what little I do know I don’t like. These loans are just too risky. Conventional loans are turned down for good reason. With peer-to-peer lending, businesses that have been denied for a bank loan, line of credit or other more traditional source of funding, are now going to an unsophisticated group for a second try. So someone is going to get burned.

It’s one of those things that looks good at first glance – like looking online for a step-by-step appendectomy. ”Just cut here, take out the appendix and sew up.” Simple, right? And you can buy the tool kit and instruction manual for less than the hospital at DIYsurgery dot com.

But some things, such as evaluating investments, making loans or performing surgery are best handled by a professional in consultation with the investor or patient. Banks and finance companies along with doctors have existed for centuries, and not just because there were no websites like and

My best advice: If your business doesn’t fit the bank’s narrow (and narrowing) loan criteria, it’s time to think outside the box. Many small companies simply do not know what they don't know, which is why it’s so important to get expert advisory to for rehabilitating and re-structuring their finances- instead of going it alone.

At US Capital Partners, we are dedicated to educating businesses to help them understand the market and determine appropriate solutions and service providers in that sector. As a direct lender, co-lender and lead financial arranger, we also offer speciailized advisory services so we can educate and collaborate with companies to help them understand alternative options for funding. If you are looking for financial support, visit our website or call (415) 882-7160.