What Is P2B Lending?
Banks turned small businesses away after 2008 — so P2B platforms like Funding Circle and 8lends stepped in. Here's how the model actually works.
P2B lending (Peer-to-Business) is a way for private investors to lend to real businesses, without a bank in the middle. Unlike P2P (person-to-person loans), P2B serves actual businesses: small and medium companies get the funding they need, and investors earn a fixed interest rate. 8lends is a P2B + RWA lending platform: investors lend to businesses through smart contracts on the Base blockchain. Every loan is backed by real collateral, and interest rates range from 19–25% a year, paid in USDC.
Where P2B lending came from
The idea of P2B lending existed long before crypto. The first P2P platform, Zopa, launched in the UK in 2005, and Funding Circle (the first major P2B platform focused specifically on business loans) opened in 2010. After the 2008 financial crisis, banks tightened their lending to small businesses, and P2B platforms stepped in to fill the gap.
Banks were too slow to approve loans for small businesses or turned them down altogether, while private investors were willing to lend at attractive rates, provided the risk was properly assessed. The P2B platform became the intermediary that:
- Screens borrowers (due diligence, collateral checks)
- Lists businesses for investors
- Handles payments and collections
- Takes care of the legal side of the transactions
8lends brings this same approach to Web3: instead of bank rails, smart contracts on Base; instead of euros or pounds, USDC; and instead of a European-only investor base, a global one.
P2B vs P2P vs other types of funding
| Aspect | P2B (8lends) | P2P consumer (Mintos) | Crowdfunding (Kickstarter) | Venture capital |
|---|---|---|---|---|
| Borrower / recipient | Small and medium business | Individual | Startup / project | Startup |
| Source of funds | Private investors | Private investors | Supporters / customers | Venture funds & angels |
| What the investor gets | Principal back + interest | Principal back + interest | Product / reward | Shares in the company |
| Collateral | Often present (RWA) | Usually none | None | None |
| Term | Fixed | Fixed | No return of funds | Often 5–10+ years |
| Return | Fixed rate | Fixed rate | Non-financial | Variable (0 to x10–x100) |
| Regulatory framework | Often specialised | Financial intermediation | Platform rules | Securities law |
P2B and P2P are often mixed up. The key difference is: B = Business (the borrower is a company), P = Peer (the borrower is an individual). P2B platforms follow stricter due diligence standards because the loan amounts are much larger.
P2B lending vs a bank loan
| Aspect | Bank loan to SMEs | P2B loan (8lends) |
|---|---|---|
| Who provides the money | Bank (using its own funds / deposits) | Pool of private investors |
| Approval time | 1–6 months | Often a few weeks |
| Borrower requirements | Strict banking criteria | Adapted to the specifics of the business |
| Transparency for the borrower | Internal bank decisions | Open terms on the platform |
| Transparency for the investor | Deposit—you don't know where your money goes | You see the specific project and borrower |
| Rate for the borrower | Set by the bank's policy | Depends on the credit rating and market demand |
| Control of funds | Bank | Smart contract (on Web3 P2B platforms) |
What P2B lending offers investors
- Direct access to the real economy—you lend to a specific business, see its details, credit rating, and collateral.
- A fixed return—you know the rate in advance, and it's not affected by market swings.
- Diversification—you can spread your capital across dozens of projects with a minimum of just 100 USDC.
- No bank margin—the rate you get reflects the real cost of money for the business, because the bank is cut out.
- Higher returns than bank deposits—you're taking on the credit risk that a bank would normally absorb, so the reward is higher.
What P2B lending offers borrowers
- Fast approval—weeks rather than months at a bank.
- Transparent terms—no hidden fees, no requirement to buy other banking products.
- Flexible collateral—different types of real assets are accepted, not only what a bank is willing to take.
- Access to funding in regions where the banking sector performs poorly or offers less favourable terms.
The downsides of P2B lending
- Credit risk is there with the investor. If the borrower doesn't repay, a bank would cover that loss itself; in P2B, you bear it directly.
- Liquidity is lower than with bank products—you can't withdraw instantly; you'll need the Secondary Market or wait until the loan matures.
- The quality of due diligence is everything—all the risk comes down to the platform and its checks.
- Regulatory differences—jurisdictions treat P2B differently, and international platforms manage this through a complex legal structure.
Well-known P2B platforms
| Platform | Launch | Region | Key detail |
|---|---|---|---|
| **8lends** | 2025 | Global (Web3) | P2B + RWA, USDC, rates 19–25% |
| **Maclear** | 2022 | Europe (fiat) | P2B + RWA, EUR/SEPA, rates 14–16% |
| **Goldfinch** | 2021 | Global (Web3) | P2B + RWA for emerging markets |
| **Maple Finance** | 2021 | Global (Web3) | Institutional lending (overcollateralized) |
| **Funding Circle** | 2010 | UK, USA | One of the first P2B pioneers, focused on SMEs |
| **Estateguru** | 2014 | Baltics, Europe | P2B with a focus on real estate |
Frequently Asked Questions
How is P2B different from RWA lending? P2B describes the lending flow (private investors → businesses). RWA describes the collateral (Real World Assets). 8lends combines both: P2B + RWA. Learn more about RWA in What Is RWA Lending?.
Who bears the credit risk in P2B? The investor. Unlike a bank deposit where the bank guarantees your money back, in P2B you're directly exposed to the borrower's ability to repay. That risk is softened by collateral (RWA), Maclear AG's due diligence, and buyback on some projects, but it's never completely gone.
Is P2B regulated? In most European countries, yes, through specific crowdfunding licences (like the ECSP in the EU). On the crypto side, virtual asset regulations apply. 8lends is operated by CLEARCHAIN CORP, registered with FINTRAC (Canada) as a Money Services Business. Borrower management goes through Maclear AG, a Swiss PolyReg SRO supervised by FINMA. More in Is 8lends Regulated?.
Why are P2B rates higher than bank deposit rates? Because you're taking on the credit risk directly. A bank keeps a margin to cover that risk; in P2B, that margin goes to you instead. On top of that, P2B borrowers often pay more for speed and flexibility than they would for a traditional bank loan. More in What Is 8lends? How the Web3 Crowdlending Platform Works.
Are P2B investments a deposit? No. A deposit is money you place in a bank with a guaranteed return (and often deposit insurance). P2B investments are direct loans to businesses. Repayment depends on the borrower, not the platform. Collateral (RWA) is the main safety net.
Is it possible to lose all your money in P2B? Theoretically, yes. If the borrower defaults and the sale of the collateral doesn't cover the full loan amount. In practice, the risk is reduced by a mix of protections: careful borrower checks, real collateral, credit ratings, and buyback on selected projects. More in How 8lends Protects Investors.
Is 8lends the first P2B platform in crypto? No. P2B in Web3 is a growing space. Goldfinch (2021), Maple Finance (2021), Credefi, and others work in a similar area. 8lends brings together P2B and RWA lending in one product, offers rates of 19–25%, and focuses on SMEs worldwide.
See also:
*Risk Disclosure: Investing in P2B lending involves risk, including the possible loss of your principal. Credit risk is borne by the investor and is not covered by any platform guarantee. Past performance is no guarantee of future results. 8lends is a platform operated by CLEARCHAIN CORP, registered with FINTRAC (Canada) as a Money Services Business. Maclear AG (Switzerland), a member of PolyReg SRO supervised by FINMA, acts as Collateral Agent. Regulatory framework as of September 2026.*