At BPW Group (Business Plan Writers) our team of consultants specialise in peer-to-peer lending business plans in Gold Coast, Brisbane, Cairns, Melbourne, Sydney, and Sunshine Coast.
What is Peer-to-Peer Lending (Crowd Funding)?
With peer-to-peer lending you can quite simply borrowing from strangers. Peer-to peer lending can also be called crowd funding. All that’s needed is an online platform and some basic information about yourself or your company to be matched up with people willing lender their money! Lending sites are also called debt crowdfunding, crowdlending or marketplace finance – they offer small business loans which have evolved over time into more general categories such as personal/company finances (sometimes referred too collectively).
Why Choose Peer-to-Peer Lending (Crowd Funding)?
As peer-to business lending platforms offer online, these lenders operate more cheaply than traditional banks. This allows them to provide competitive interest rates and protect themselves by spreading out credit risk across multiple borrowers in order make sure that they don’t end up taking on too much debt at once – especially if there’s no collateral available! Borrowers find accessibility (fast application processes) along with lower costs attractive features which makes this type of funding platform an excellent option for newer businesses who need help getting their name out into the public domain.
Pros and Cons of Peer-to Peer Lending (Crowd Funding)
- Competitive rates
- The approval and application process is fast
- Lenders are friendlier to businesses with next to no security and short credit history
- Replaying the loan early isn’t always penalised
- Each platform varies between the level of criteria so you could be declined by one and approved by another.
- You will need good security and credit rating for the best rate
- Smaller loans than the banks
- You do not receive any money if your loan request is not 100% funded
- Large penalty fees and damage to your credit rating can happens if payments are missed.
- Line of credit are not on offer and term loans.
Peer-to-peer Lenders (Crowd Funders) want to see a Business Plan
Lenders will want to see a comprehensive business plan that includes the product or service, target market, market analysis, demand, goals, strategies, and a forecast. The below items should be included in your plan to increase your changes of securing funding:
- Executive Summary
- The Business
- Business Overview
- Vision Statement
- Mission Statement
- Core Values
- Management & Experience
- SWOT Analysis
- Goals & Objectives
- Continuity Plan
- Legal Requirements
- Demand (Current)
- Demand (Future)
- Market Analysis
- Industry Definition
- Industry at a Glance
- Supply Chain
- Main Business Activities
- Market Share Concentration
- Key Success Factors
- Cost Structure Benchmark
- Basis Of Competition
- Barriers To Entry
- Business Locations
- Industry Analysis
- Industry Swot Analysis
- Industry Outlook
- Product And Services Segmentation
- Major Markets
- Insurance Strategy
- Risk Management
- Policy & Regulation
- Financial Considerations
- Start-up Costs
The Business Plan Writers team execute business plans for investors such as peer-to-peer lenders. Our expert service ensures your business plan is designed to secure crowd funding.
Reach out to one of our advisors today and Contact Us via one of our locations around Australia including Cairns, Brisbane, Gold Coast, Sydney, Melbourne, and Sunshine Coast.