The best peer-to-peer lending platforms will vary depending on your specific circumstances, but should offer sufficient funding amounts, along with a wide range of repayment terms. The best options should also make it easy to apply for funding, and carry flexible eligibility criteria.
In past years, a number of P2P lenders have decided to exit the industry, with many converting to more traditional lending models that involve the need to meet the qualification requirements of a large bank rather than an individual. With that said, I’ve included some P2P companies where funding still comes from individuals, even if you must meet certain criteria similar to that of a bank.
Here are my picks for the best P2P lenders:
- Kiva: Best overall for no-interest business loans
- Prosper: Best for fast funding speeds
- Honeycomb Credit: Best for large loan amounts
- SoLo Funds: Best for small funding needs
- Best peer-to-peer platforms at a glance
- Kiva: Best overall for no-interest business loans
- Prosper: Best for fast funding speeds
- Honeycomb Credit: Best for large loan amounts
- SoLo Funds: Best for small funding needs
- How I evaluated the best peer-to-peer lending platforms
- Alternatives to peer-to-peer lending
- Frequently asked questions (FAQs)
- Bottom line
Best peer-to-peer platforms at a glance
| Max. funding amount | Max. repayment term | Est. starting APR | Application to funding speed | |
|---|---|---|---|---|
 | $15,000 | 3 years | 0% | 30 to 45 days |
| Visit Kiva | ||||
 | $50,000 | 5 years | 8.99% | As fast as 1 business day |
| Visit Prosper | ||||
 | Varies | 5 years | Varies | 2 to 4 weeks |
| Visit Honeycomb Credit | ||||
 | $625 | Varies | 0% to 36% | 1 to 3 days |
| Visit SoLo Funds | ||||
Kiva: Best overall for no-interest business loans
| |
|---|---|
| Rates & Terms | |
| Estimated starting APR | As low as 0% |
| Loan amount | Up to $15,000 |
| Repayment term | Up to 36 months |
| Repayment schedule | Monthly, but can vary |
| Funding speed | 30 to 45 days |
| Financing type | Small business loans |
| Qualifications | |
| Credit score | None |
| Income | Not stated |
| Visit Kiva | |
Why I like Kiva
Kiva was my pick as the best overall platform because it can offer a true 0% interest rate loan for business owners. It might sound too good to be true, but this is made possible by the fact that Kiva is a non-profit organization whose goal is to simply expand access to capital for business owners. Additionally, Kiva has a community of over 1.6 million individual lenders who can provide the necessary money to fund your loan request.
Kiva operates with the belief of valuing character over credit. As such, you’ll need to demonstrate social capital by having some of your friends and family lend money to you. You’ll then be able to go public on the Kiva platform to have your loan request made visible to individual investors who can decide whether to contribute to your funding request.
Other eligibility requirements include the need to have your business be based in the United States, and funds must be used for business purposes only. Depending on your application, certain businesses and industries may not be eligible, such as those involved with illegal activities, multi-level marketing, direct sales, or pure financial investing.
The application process is conducted entirely online, and interested business owners should be prepared to provide financial information that shows the company’s performance over the past several years.
Prosper: Best for fast funding speeds
| |
|---|---|
| Rates & Terms | |
| Estimated starting APR | 8.99% to 35.99% |
| Loan amount | $2,000 to $50,000 |
| Repayment term | 2 to 5 years |
| Repayment schedule | Monthly, but may vary by program |
| Funding speed | As fast as 1 business day |
| Financing type | Personal loans |
| Qualifications | |
| Credit score | 640+ recommended, may vary by program |
| Income | Not stated |
| Visit Prosper | |
Why I like Prosper
Prosper offers personal loans for many different use cases, and in a lot of instances, funding can be issued in as little as one business day. Loans can be used for things like debt consolidation, home improvement, medical expenses, auto financing, and more. If you’re a business owner, some programs may even allow you to use a personal loan for business funding.
While rates can be as low as 8.99%, the strength of your credit and finances will be the primary factors that determine what rate you’ll be eligible for. Prosper states that the average APR for 3-year loans funded between January 1, 2024 and July 31, 2024 was 24.79%. That is the most recent data the company has made publicly available.
Prosper has an easy online application process that requires you to share basic information about your income and expenses. You’ll then select from available programs, rates, and terms. Checking your eligibility also won’t impact your credit score, and if you find a suitable loan, you could get funding quickly via direct deposit.
Honeycomb Credit: Best for large loan amounts
| |
|---|---|
| Rates & Terms | |
| Estimated starting APR | Varies |
| Loan amount | Varies |
| Repayment term | 3 to 5 years |
| Repayment schedule | Monthly |
| Funding speed | 2 to 4 weeks |
| Financing type | Small business funding |
| Qualifications | |
| Credit score | Varies |
| Income | Varies |
| Visit Honeycomb Credit | |
Why I like Honeycomb Credit
Honeycomb Credit could be described as a loan crowdfunding platform. From a P2P standpoint, you are getting funds from multiple different individuals or investors. However, you’ll also get benefits typically only found in crowdfunding, such as support from business experts, guidance with creating a marketing plan, and the ability to get a free professionally shot campaign video to showcase your business.
When you apply with Honeycomb Credit, your application will be reviewed by the credit team, who will then issue you specific loan terms you’re eligible for. If deemed acceptable, you’ll sign the term sheet and then launch your offering on the company’s platform. If your campaign is a success, you’ll then receive funding to your designated bank account, after which you’ll just need to ensure that you make your payments in a timely manner.
One notable feature with Honeycomb Credit is the fact that it offers a 30-day payment-free period once your funding campaign has ended. This is done to allow you time to focus on the logistics of your business, before having to worry about the financial aspect of repaying the loan. If you need funds more quickly, Honeycomb Credit also makes it possible for you to receive access to the money before your campaign is officially ended, albeit for a small fee.
SoLo Funds: Best for small funding needs
| |
|---|---|
| Rates & Terms | |
| Estimated starting APR | 0% to 36% |
| Loan amount | $20 to $625 |
| Repayment term | Varies |
| Repayment schedule | Varies |
| Funding speed | 1 to 3 days |
| Financing type | Personal loans |
| Qualifications | |
| Credit score | None |
| Income | Varies |
| Visit SoLo Funds | |
Why I like SoLo Funds
If you don’t need a large amount of funding, SoLo Funds makes it easy to get the funding you need quickly at exceptionally low costs. SoLo Funds works by allowing you as the borrower to choose your own loan cost. When you post your loan request, potential investors can then decide whether to fund your loan based on things like your prior history as a borrower on the SoLo platform, the intended use of funds, and the expected return.
Loan costs consist of a portion for tips, and another portion for donations, both of which are optional. Donations go towards SoLo Funds itself to help with administrative and security costs, while tips go to the individual who decides to contribute to your loan request. Of course, it’s easy to see that while you can opt not to tip, loan requests with higher tip amounts are more likely to be funded to make it more worthwhile for that investor. SoLo Funds states that the average cost of a loan is 17%, which consists of an average tip of 10.4% and an average donation of 6.2%.
One downside with SoLo Funds is the fact that you can only make one loan request at a time. Loan requests are also only active for a maximum of three days, after which it will be canceled if no investors have decided to fund the loan.
How I evaluated the best peer-to-peer lending platforms
My process of selecting the best P2P lending platforms involved an evaluation of the following aspects:
- Rates, terms, and loan fees
- Eligibility criteria
- Restrictions on usage of loan proceeds
- Funding speeds
- Customer reviews and ratings
Alternatives to peer-to-peer lending
If you’re unable to get the funding or the terms that you need on a P2P platform, you can consider the following alternative funding methods, which include getting funds from friends/family or getting a traditional small business loan:
- Funding from friends or family: Asking friends or family for funding can bypass certain lending requirements, such as a minimum credit score or revenue threshold. Our guide on getting funding from friends and family covers the steps you’ll need to follow if you decide to go this route.
- Bad credit business loans: Having a low credit score can make it difficult to get approved for funding. Even if you do get approved, having bad credit often means having to accept high rates and fees. Lenders that specialize in issuing funding to those with low credit scores, however, can allow you to get competitive rates and terms. See our picks for the best bad credit business loans.
- Fast business loans: If you opted for P2P lending because you thought it could offer access to money more quickly than a traditional bank, think again. Our picks for the best fast business loans can get you approved and funded in as little as 24 hours.
Frequently asked questions (FAQs)
Amounts can range from as little as $25 to as much as $50,000+. This depends on the lending platform you choose, the type of financing you’re seeking, the intended purpose of the loan proceeds, and whether there are enough investors willing and able to fund your loan request.
Yes. Some P2P platforms have no minimum credit score. However, I recommend having a credit score of at least 600+, as this should make it easier to get approved. Additionally, keep in mind that the best rates typically go to those with excellent credit.
You can get funded as quickly as the very same business day, as being able to get access to additional money is one of many benefits of P2P lending. However, a more typical funding timeline is anywhere between one and four business days. The funding speed for your specific loan may vary depending on the complexity of your finances and the lending platform you choose.
Bottom line
The best peer-to-peer lending platforms listed in this guide can connect you with individual investors willing to fill your loan request. P2P lending can make it easier to get funding thanks to qualification requirements that are generally easier to satisfy, lower paperwork requirements, and faster funding speeds. However, be aware that since rates and fees can be higher than that of a traditional bank, you should compare alternative financing options to see which is best suited for your circumstances.
