Advertiser Disclosure

Best Options for Peer-to-Peer Business Lending

Aug. 23, 2018
Small Business, Small Business Loans
At, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

While shopping for small-business loans online, you’ve likely come across companies that specialize in peer-to-peer business lending.

What is peer-to-peer, or P2P, business lending? Peer-to-peer lenders underwrite borrowers but don’t fund the loans directly. Instead, they’re an intermediary between the borrower and the individual investor or an institutional investor such as a hedge fund or investment bank.

To help you decide if P2P is the best option for your business, we break down three popular options: Funding Circle, Lending Club and StreetShares. These P2P business lenders cater to established small-business owners with good credit. If your credit score falls below 600 and you need an influx of cash, check out our recommendations for bad-credit business loans.

Peer-to-peer business loans: Summary of options

Funding options
Funding Circle

Lending Club


Street Shares
Best forGrowthFlexible financingWorking capital
Loan Details
Loan amount$25,000 - $500,000$5,000 - $300,000
$2,000 - $250,000
APR11.19% - 26.61%9.8% - 35.7%
9% - 40%
Minimum Qualifications
Personal credit score620600
Annual revenueNone$50,000$75,000
Time in business2 years1 year1 year
Apply now at Funding Circle
Apply now at Lending Club
Apply now at StreetShares

For more details

For businesses looking to grow: Funding Circle

For businesses looking for flexibility: Lending Club

For businesses seeking working capital: StreetShares

For businesses looking to grow: Funding Circle

Funding Circle has no minimum revenue requirement, and with access to higher loan amounts, you can use the funding for growth-related expenses including equipment, renovations and refinancing debt.

  • Pro: Funding Circle does not require a minimum annual revenue
  • Con: The lender has the highest minimum personal credit score requirement at 620 among the four lenders compared here
  • Loan amount: $25,000 to $500,000
  • APR: 11.19% to 26.61%
  • Loan term: 6 months to 5 years
  • Funding time: Average of 10 days
  • Read our Funding Circle review
Apply now at Funding Circle

[Back to top]

For businesses looking for flexibility: Lending Club

Lending Club offers term loans up to $300,000 that you can use for practically any business expense, including inventory, equipment and refinancing old debt.

  • Pro: Competitive APRs 
  • Con: Compared with online lender StreetShares, Lending Club requires higher annual revenue of $50,000.
  • Loan amount: $5,000 to $300,000.
  • APR: 9.8% to 35.7%.
  • Loan term: 1 to 5 years.
  • Funding time: As fast as two days, but typically a week or two.
  • Read our Lending Club review.
Apply now at Lending Club

[Back to top]

For businesses looking for working capital: StreetShares

StreetShares offers a personalized twist on P2P lending — it helps connect veterans seeking funding, for instance, with investors interested in helping veteran-owned businesses.

  • Pro: You need only a year in business and $75,000 in annual revenue to qualify
  • Con: Funding is capped at 20% of your revenue

Term Loan

  • Loan amount: $2,000 to $250,000
  • APR: 8% to 39.9%
  • Loan term: 3 to 36 months
  • Funding time: 0 to 5 days
  • Read our StreetShares review
Apply now at StreetShares

[Back to top]

Want to compare other small-business loans? has come up with a list of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.


About the author