Last updated: 09 Jun 2026

Alternative finance - peer to peer lending

Peer to peer lending for businesses

Peer to peer lending connects your business with investors directly, bypassing the bank. Compare options from 130+ UK business lenders with Capitalise and get a decision in as little as 24 hours.

Why get a peer to peer loan with Capitalise?

  • 200,000 UK businesses trust us

  • Business credit data powered by Experian

  • £2bn in funding approved

  • FCA regulated since 2015

What is peer to peer lending?

Peer to peer lending connects businesses that need money with people who want to invest their money directly. This is an alternative form of finance to getting a loan from a traditional bank. It has become a popular option for both investors and businesses. For businesses, the approval process is generally faster, it provides greater accessibility to finance and usually comes with better interest rates. For investors, it provides alternative investment that can potentially offer higher returns compared to traditional savings and allows for more diverse investment across various sectors and risk categories.

How does peer to peer lending work?

P2P lending works by matching your business with a pool of individual investors who fund your loan, all facilitated through an online platform. There's no bank in the middle, just a direct connection between borrowers and investors. Here's what the process looks like in practice:

  1. You complete an online application describing your business, how much you want to borrow, what you need it for, and your preferred repayment term. Through Capitalise, one application gives you access to 130+ UK lenders, including P2P specialists, so you can compare your options without filling in multiple forms.

  2. Once a lender receives your application, they'll assess your business credit score, review your supporting documents, and make a decision. Because everything happens online, this can be fast, often within 24 hours.

  3. If approved, you'll receive a loan offer setting out the amount, interest rate, repayment term, and any arrangement fees. The funds come from a pool of investors but are managed entirely by the platform, so from your side it works just like a standard loan.

What can you use a peer to peer loan for?

  • Managing cash flow

    Whether it's covering a slow trading period, bridging a gap between invoices, or keeping things running while you wait on a large payment, a P2P loan can help you manage your cash flow.

  • Equipment and machinery

    Need to upgrade your kit, replace a key piece of equipment, or invest in new technology? A P2P loan lets you spread the cost rather than tying up working capital.

  • Hiring and team growth

    Taking on new staff is one of the biggest investments a business can make. A P2P loan can cover recruitment costs, salaries during a ramp-up period, or training for an expanding team.

  • Premises and refits

    Moving to bigger premises, fitting out a new space, or renovating an existing one, P2P finance can fund the work so you're not waiting until you've saved enough to grow.

  • New product launches

    Got a new product, service, or market you want to move into? A P2P loan can cover the upfront costs of development, production, or marketing before the revenue starts coming in.

  • Acquisitions

    Looking to buy another business, take on a competitor, or buy out a partner? P2P lending can be a faster and more accessible route to acquisition finance than going to a high street bank.

What are the advantages and disadvantages of peer to peer lending?

  • Advantages of peer to peer lending

    • P2P loans are generally easier to obtain than a bank loan, especially for businesses that may not qualify for traditional bank loans due to limited credit history or lack of collateral.

    • The application process is typically online and streamlined, which means you can get funding faster, often within a few days.

    • Since these loans connect you directly with investors, the rates can sometimes be more competitive than those offered by banks.

    • Many P2P platforms offer flexible loan amounts and repayment terms, allowing you to tailor the financing to your specific needs.

  • Disadvantages of peer to peer lending

    • Your business might need to provide security for the loan, such as a personal guarantee.

    • While rates can be competitive, they may also be higher than high street bank loans, especially for businesses considered higher risk.

    • P2P loans often come with additional fees, such as arrangement fees, which can add to the overall cost of the loan.

    • Depending on the platform and your business’s situation, the amount you can borrow might be less than what traditional banks offer.

How much can you borrow with a peer to peer business loan?

Loan size

Typical use

Repayment term

£5,000 to £25,000

Cash flow, small equipment, short term gaps

1 to 3 years

£25,000 to £150,000

Hiring, expansion, stock, refits

1 to 5 years

£150,000 to £500,000+

Larger growth projects, commercial property

2 to 5 years


The exact amount you can access depends on your revenue, trading history, credit profile, and the lender you match with. You can use our free business loan calculator to see what you could borrow and what monthly repayments might look like.

Who is eligible for a peer to peer business loan?

  • Trading history

    Usually at least 12 months is required, though some lenders will work with newer businesses.

  • Annual revenue

    Most lenders have a minimum annual turnover required, this is often from around £50,000.

  • Business credit score

    Most lenders have a minimum credit score requirement. The stronger your score, the more lenders you'll qualify with and the better the rates you're likely to be offered.

  • UK registered business

    Your business must be registered and operate in the UK in order to be eligible.

How does peer to peer lending compare to other business finance?

P2P lending

Bank loan

Revenue finance

Business credit card

Decision speed

24 to 72 hours

Several weeks

24 to 48 hours

24 to 48 hours

Typical loan size

£5k to £500k+

£10k to £5m+

£5k to £500k

£1k to £50k

Eligibility

Flexible

Strict

Revenue based

Credit score based

Collateral required

Sometimes

Often

Rarely

No

Works for newer businesses

Often

Rarely

Sometimes

Sometimes

Best for

Fast, flexible funding without a bank

Large, longer term borrowing

Businesses with strong monthly revenue

Small, short term spending

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