Peer-to-peer lending is a type of business loan where a business (or individual) borrows money from private investors rather than a bank or building society. It is usually done through a P2P platform who handle all the transactions, with the aim of giving both the lender and the borrower better rates than they would get on the high street. Firms can also take out business insurance to cover the loan payments if an unexpected event occurs, such as a director becoming critically ill.