Bigcarrots

Good:
Money is borrowed from other people at very low rates so you don't involve any banks

Bad:
You will need to advertise your loan requirements in a listing so process can take up to 2 weeks

Verdict:
Funding for smaller and medium businesses (without the government or banks) - new company in the market with affordable interest rates

Bigcarrots are a peer-to-business lending solution. This means that everyday people who have some spare cash they want to invest, can lend it to people with small to medium businesses who need a loan. You can borrow between £1,000 and £25,000 and you don't even need to involve a bank! You can borrow up to £25,000 for up to 3 years. It usually takes about 7 days to get your money, although it can take a bit longer if you cannot find people willing to lend you the money.

You can apply online with Bigcarrots. First of all you will need to register with them which includes creating a username and some simple security questions. You then need to enter your company name and company number - which will enable them to be able to see the financial details of your company etc. This is treated as part of their credit check. You then need to post a listing indicating the amount you want to borrow and the maximum interest rate you can afford to pay. You are asked to explain the purpose of your loan, to add a picture of yourself or your business and write a description on how you plan on using the loan.

The people who could lend you the money will then search through your listings and based on your rating, debt profile and other factors, will decide if they want to lend to you. The lenders will bid on your listing by telling you the minimum interest rate they are willing to accept. If you are both happy with the terms of the loan, you will need to sign a loan agreement. After all of this is completed, the funds will be sent by direct transfer to your account. They will verify this account by sending 4 digits which you must report back to them before the release the loan to that account.