@krystel If you’re looking for a loan but don’t have a Social Security number or credit rating, or if you can only offer collateral in the form of material possessions, it will be tough to get approved for a loan. But there are still some options available. Some online peer-to-peer lenders issue loans to people without traditional credit and some local lenders focus on this niche market.
What to Expect
If you can’t get approved for a loan with a traditional lender, then your best bet is to seek a peer-to-peer lender. These lenders are individuals or companies who lend money directly to people via the Internet.
How Much You Can Borrow
The amount you can borrow will depend on several factors, including how long you have been in business and how much collateral you have to offer. Peer-to-peer lenders usually base their minimums on your credit score, so the lower your score, the less money you can borrow.
Where You Can Get Your Money
Peer-to-peer lenders will fund loans using a variety of different methods. So it’s essential to determine which one is best for you. Some sites accept only bank transfers, while others offer various funding options, including PayPal accounts and credit cards. The repayment options will also vary.
How You Repay Your Lender
Most peer-to-peer lenders offer flexible repayment options, including fixed and adjustable terms. You can either pay off your loan over time or make a lump sum payment to cover the total amount.
Peer-to-peer lending is an option that allows borrowers to secure small business loans without using traditional sources of funding. It is not for everyone and has risks, but it can be a valuable tool if you have bad credit or little collateral to offer as security.