The saying goes that "The only two things that are certain in this world are death as well as taxes." Unfortunately, small-scale businesses understand this maxim all too well. With declining profits and tightened lending regulations, However, many small-scale business owners are in a hard spot when it's time to pay taxes.
While a company may have steady revenue and sales or even thousands of dollars in inventory, however, traditional lenders and bank institutions aren't granting small business loans the way they did in the past which leaves small-sized business owners with limited sources of funding to pay their tax bill. Fortunately, peer-to-peer loans, also known as social lending has helped solve this issue.
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Social lending platforms have brought millions of borrowers to individuals who are investors. Borrowers can avail low-interest fixed-rate loans that are taken out in between two and five years. Investors can benefit from good returns in an environment that is experiencing a decline in savings and bond rates.
This is an ideal win-win for small business owners in dire need of quick funding as well as investors who want to earn some profit and help others. Peer-to-peer lending is a new social media solution for small-scale businesses that are seeking a means to secure alternative financing.
The purpose of peer-to-peer lending websites, like Prosper as well as Lending Club, is simply to connect investors of all kinds with individuals who require funding These sites have become a popular option for small-scale entrepreneurs who aren't able to get financing through traditional lending institutions.