Peer-to-peer lending, also known as person-to-person lending, peer-to-peer investing and social lending, is a financial transaction that occurs directly between individuals without the assistance of a bank. What this model does is cut out the costs of a traditional intermediary, allowing you access to potentially cheaper loans. However, credit scores and other aspects of lending such as collateral are still important to the process.

While P2P lending might not be a source of funding to complete an entire capital round, it certainly might help complete one. It may also be a source of short term funding to keep your business growing if cash flow becomes a problem.

If you feel you need a bridge loan for a short period of time to cover operating costs, peer-to-peer lending could be utilized. Our course, "Bring Money in With P2P Lending" will give you an introduction to the way creative financing occurs. Think about how a P2P Lending site could be used strategically. Could this be a way for you to attract new followers, friends and fans? Sign up for the course today and learn from the INVESTyR DealTeam.