Business loan & funding platform

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Page written by Chris Godfrey. Last reviewed on May 30, 2025. Next review due April 6, 2026.

The days of visiting your local bank manager to request a loan are long gone. Now, businesses can get the funds they need with the click of a mouse. Cover cash flow gaps, buy equipment and inventory, build your working capital without leaving your desk. Loan platforms are fast, flexible and convenient.

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What is a loan platform?

A business loan & funding platform is an online service that connects borrowers with lenders, simplifying the process of applying for and receiving loans. Loan platforms may offer direct lending, peer-to-peer lending, or act as a marketplace where borrowers can compare multiple lenders’ offers. Loan platforms streamline applications, automate credit assessments, and can often provide faster decisions and funding than traditional methods, making borrowing more accessible for businesses.

How do loan platforms work?

Loan platforms use technology to match borrowers with loans that meet their needs. Businesses complete a digital application, providing details such as business type, revenues and loan purpose. The platform then uses algorithms to assess risk and match the borrower with suitable loan options—either from direct lenders, peer investors, or a network of financial institutions.

Some loan platforms allow borrowers to compare rates, while others handle the entire lending process, from approval to fund disbursement. Repayments are often managed through the platform, which may collect a service fee. This streamlined approach can offer quicker decisions, less paperwork, and more flexible borrowing options compared to traditional banks, making loan platforms especially attractive to entrepreneurs, startups, or small businesses needing fast and convenient access to funds.

Who can benefit from using a loan platform?

Loan platforms can help many types of business:

Small business owners

Loan platforms benefit small business owners by offering fast, accessible funding with minimal paperwork and flexible terms. The platforms can provide access to multiple lenders or investors, increasing approval chances. Businesses can compare rates, choose the best option, and receive funds quickly—typically supporting cash flow, growth, or emergency needs more efficiently than traditional lenders.

Start-ups and sole traders

New and very small businesses often struggle to obtain commercial funding, but loan platforms support start-ups and sole traders by offering quick, flexible access to loans and investors, often with lower entry requirements than traditional banks. The platforms can simplify the application process, provide multiple loan options, and enable fast decisions, helping new or very small businesses secure essential capital for launch, operations, or early-stage growth.

Businesses seeking fast and flexible finance

Loan platforms benefit businesses seeking fast and flexible finance by offering quick approvals, minimal paperwork, and tailored loan options. Where traditional lenders are typically slow to approve loan applications and have rigid loan options, loan platforms give businesses the option to compare lenders, choose repayment terms, get a fast approval and receive funds rapidly – sometimes on the same or next business day.

Pros and cons of using a loan platform

Like all types of business borrowing, loan platforms have their advantages and disadvantages:

Pros

Fast access to funds: Quick application and approval processes, often within 24–48 hours
Convenience: Fully online with minimal paperwork
Flexibility: Variety of loan types with terms suited to different needs
Wider access: More inclusive for start-ups or those with limited credit history
Comparison Tools: Some platforms let you compare multiple offers in one place

Cons

Higher interest rates: May charge more than traditional banks, especially for riskier borrowers
Less personalized service: Limited human interaction or tailored advice
Fees and charges: Some platforms charge origination or service fees.

Loan platforms vs. traditional lenders

Online loan platforms typically offer faster applications, quicker approvals, and more flexible borrower requirements than traditional lenders. They often cater to borrowers with varied credit profiles and use technology to streamline the loan process. Alternatively, traditional lenders, such as banks, usually have stricter criteria, longer approval times, and more paperwork, but may offer lower interest rates and a more personalised service. Online platforms are ideal for speed and accessibility, while traditional lenders may suit businesses seeking a long-term financial relationship.

Types of loans available

There are different types of loan platform. Each have their own way of working and offer different sorts of loan:

Peer-to-peer (P2P) lending platforms

Peer-to-peer (P2P) lending is a method of borrowing money directly from individual investors through a specialised platform, bypassing traditional lenders such as banks. Businesses place their request for a loan and lenders may choose to fund them, often in small amounts across multiple loans. The platform facilitates the process, handles credit checks, and manages repayments, often earning a fee for its services. Although this lending method can be time-consuming for borrowers, it may offer access to funds when they cannot obtain other types of business loan. Security may be required.

Crowdfunding platforms

Available via various platforms, crowdfunding can provide the cash you need to fund a project, product or venture if your presentation hits the right spot. Although it may be tough to raise large sums in small donations from hundreds of donors, the cash is essentially free as there is no interest to pay, and you don’t need to repay the money if you spend it where you said you would. Contributors may receive rewards, equity, or simply support your cause with no expectation of return, depending on the model used (reward-based, equity-based, donation-based, etc.). Showcasing an eye-catching idea and making a powerful pitch are essential to succeed with this funding option. Security is not required.

Online alternative lenders

Online alternative lender platforms are non-bank financial services that provide business or personal loans. They typically offer faster, more flexible funding options compared to traditional banks and may also have less stringent credit requirements. The platforms use technology to assess risk quickly and can often disburse funds to borrowers in days or even hours, making them attractive for SMEs, startups, or individuals needing fast, accessible financing. Security may be required.

Comparison and brokerage platforms

A comparison or brokerage loan platform is an online service that allows businesses to compare loan offers from multiple lenders in one place. Instead of applying directly to each lender, a time-consuming process, businesses enter their financial details once, and the platform quickly presents a range of loan options based on eligibility and suitability. Some platforms also act as brokers, helping users apply for and secure the best loan. These platforms can save time, increase transparency, and help borrowers find the most competitive rates and terms. Security may be required.

How to choose the right loan platform

With many loan platforms to choose from, it is essential that businesses work with a platform that meets their specific needs. Key factors to be aware of include:

Interest rates and fees

Interest rates and fees with online loans can vary from the ultra-low to the very high depending on the loan type and the financial situation of the borrower. For example, if your credit score is weak and you need funds quickly to cover bills, you’ll typically pay a higher interest rate than a well-established business that needs funds to construct a new facility. Wherever possible, borrowers should always compare rates from different lenders, using a loan calculator to discover how much the monthly repayments will be and the total cost of the loan over time.

Speed of funding

Some loan platforms specialise in ‘same day’ fast loans for businesses, however, they will usually charge a premium interest rate to borrowers who need money in a hurry. Once again it’s important to compare different lenders to discover how fast they can disburse funds after loan approval. Depending on your business situation, striking a balance between the speed and cost of the loan may be your best course of action.

Eligibility criteria

Although loan platforms are typically less strict than major banks or building societies, the eligibility requirements between loan platforms and different lenders can vary significantly. Some online lenders may require little more than a credit check while others may need to see bank statements, tax returns and other paperwork. Keep in mind that in many cases, the less stringent the eligibility criteria is, the more costly the loan will be. Borrowers should always shop around for loan options that provide a strong chance of approval but also come at a competitive price.

Alternative ways to access business finance

If the options above are not right for you, there may be other ways to obtain the funds your business needs:

Direct lending from banks or building societies

High street banks and building societies are a traditional source of business loans. They can often offer the highest loan sums and the most competitive interest rates. However, in many cases, you’ll need to be an existing customer to apply. Borrowers should also expect a slower process than they’ll find with loan platforms and eligibility can be very strict. A good credit score is essential. Security may be required.

Invoice finance and factoring

Invoice financing and factoring both use your outstanding invoices as security for a loan. Instead of waiting 30, 60, 90 days or more to get paid, you can receive the cash tied up in your unpaid bills as soon as you issue them – sometimes in 24 hours or less. No security is required.

Important note: Although they are similar in concept, there are major differences between these lending models.

With invoice financing (also known as invoice discounting) you borrow against the value of your outstanding invoices. You retain control of your sales ledger and are still responsible for collecting payment from your customers. This means clients need never know you’re using your invoices to raise funds.
With invoice factoring (also known as account receivables financing) you sell your unpaid invoices to a third party, known as a factor, who then takes control of your sales ledger and collects payment of the invoices directly. Because they must deal with the factor, invoice factoring means your customers will know you are using your invoices for a loan.

Asset-based lending

Asset-based lending is a type of loan secured by a company’s assets, such as inventory, property, or plant and equipment. Lenders use these assets as collateral, which reduces risk and may allow businesses to access funds even with weak credit. Asset-based lending is typically used for working capital or cash flow support. No added security required.

Get started with Swoop

Working with business finance experts can make all the difference when applying for a loan. Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality business loans from a choice of lenders. Give your business the boost it deserves.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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