Generally speaking, most peer-to-peer lending platforms require a business to be able to demonstrate its profitability before being accepted onto the site.
The first stage is an online application form which the lending company should respond to within a couple of days. The criteria
vary by platform but to pass this initial screening stage, usually,
your business would need to be a UK based SME, either a limited company, LLP or a sole trader.
Some platforms will require you to have a minimum of two years of accounts filed at companies house and a minimum annual turnover of, for example, £100,000. Each one is different though, so take some time to compare. Generally, however, you need to be able to demonstrate profitability and have up-to-date management accounts by which the platform can assess your credit risk.
If you pass this initial stage, your loan will be listed on the platform as an auction and investors will be invited to make bids. They will
bid on the amount they are prepared to lend, and at what interest rate – the higher the risk your business poses, the higher the
interest rates of the loan will be. Investors can bid anything from
£20 to much more. Obtaining the full value of your loan may take a few hours or a few days, and you could end up with a small amount of investors, or hundreds. Once the bids begin to total more than your loan request, any bids entered at a higher interest rate will be knocked out by those at a lower interest rate, bringing your overall average interest rate down by the time the auction ends.
Once you have accepted the loan, the money should be in your account anywhere from 3 days to two weeks later.