Cash advance, P2P lending or crowdfunding: which solution fits your profile?

Alternative financing solutions are not only for individuals looking for quick cash. They are also aimed at investors who want to diversify their savings and support real projects. Between cash advance apps, peer-to-peer (P2P) loans, and crowdfunding, choices are multiplying… but not all of them meet the same needs! So, how can you find your way? Let’s take a closer look at the specifics of each option.

Borrowing money: which options fit your needs?

Depending on the urgency of your needs, the amount required, and your profile, several financing solutions exist today: from immediate cash advances to structured peer-to-peer loans, all the way to crowdfunding dedicated to SMEs.

What do cash advance apps offer?

Need a few hundred euros quickly to make it through the month or cover an unexpected expense? Cash advance apps are attractive thanks to their speed. The process is simple: online request, almost instant approval, funds available within 24 to 48 hours. Ideal to avoid a bounced payment or to finance an unexpected bill without waiting.

👉 In Europe, several players exist depending on the country. In England, the Monese app offers an instant £50 advance through its app, charged at £4.99 with no additional fees or interest, automatically repayable upon a future deposit. The service can be reused once repaid, subject to eligibility conditions, and may potentially help improve your credit.

In France, several apps offer loans of varying amounts:

• Finfrog offers microloans from €100 to €600, repayable in 3 to 6 months. Approval in less than 24 hours and payment within 48 hours. Very practical for urgent cash needs. But interest rates are generally high, up to 23.3%.
• Bling, less formal, allows you to request an instant advance of €20 to €100, provided you have already made repayments. A service tailored for students and young professionals facing occasional financial trouble, especially since there are no fees or interest rates applied.
• Floa Bank offers a mini-loan called “Coup de Pouce” with an amount personalized according to your profile, up to €3,000, repayable in 3 or 4 installments over 90 days, with instant approval and funds available within 24 to 48 hours, without requiring a project justification. Interest rates vary depending on the amount borrowed, from 2.63% to 23.34%.

Note that many players are active in this market. To learn more about these offers, you can discover apps that allow a cash advance by checking out this comparison from Détective Banque.

👉 In the United States, apps like MoneyLion (Instacash) or Earnin have become must-haves.

• MoneyLion offers Instacash, a salary advance service with no interest or credit check, allowing users to borrow up to $500 (or even $1,000 under certain conditions). Funds are transferred for free within a few days, or instantly via a “Turbo Fee,” and the user can choose to leave an optional tip.
• Earnin is a cash advance app that allows you to withdraw funds directly against your credit card limit, either at an ATM or via a convenience check. While this provides immediate access to cash, it is costly: fees of 3 to 5% (or more) are added, as well as high interest rates (around 25%) applied immediately, without a grace period. In practice, this type of advance can be helpful in an emergency, but it must be used cautiously, as the accumulation of fees can quickly lead to hard-to-manage debt.

⚠️ Warning: these solutions cover modest amounts (often <€600) and sometimes involve high fees. They remain useful for quick relief, but not for financing a structured project.

What does peer-to-peer lending (P2P) offer?

Peer-to-peer lending, or P2P, is a form of crowdfunding that allows borrowers to access funds without going through a traditional bank. Everything takes place via an online platform, which collects money from investors and redistributes it as loans.

👉 Among European players, PeerBerryhas established itself since 2017 as a reference. The platform relies on partner credit companies (loan originators) that offer different types of financing: consumer loans, real estate projects, leasing, or business development. Once granted by the originators, these loans are then financed by investors via PeerBerry. Accessible in many European countries and available in several languages, including French, PeerBerry is today a credible alternative to traditional banking channels.

👉 In the United States, Prosper Marketplace, a pioneer in P2P lending, allows borrowers to access unsecured personal loans through its partner bank, WebBank. Amounts, ranging from $2,000 to $50,000, can be repaid over 2 to 5 years. Applicants can check their estimated rate (potentially accepting origination fees between 1% and 9.99%) and receive funds as soon as the next business day if approved.

In short, P2P lending is mainly for individuals looking for an alternative to traditional banks, whether to consolidate debt, finance home improvements, cover an unexpected expense, or pursue a personal project — all through a simple and fully digital process.

And what about crowdlending for SMEs?

Crowdlending is not just for individuals: it is also an opportunity for businesses seeking financing. In practice, an SME can borrow directly from investors via a platform, in the form of a loan or a bond. The advantage? No equity dilution, a 100% online process, and often faster approval than with a traditional bank.

👉 In France, Lendopolis stands out for its focus on energy transition projects: solar farms, wind turbines, biomass… Companies can borrow from €10,000 to €2.5 million over 2 to 5 years.

Conversely, Investbook is not centered on green energy but finances SMEs in various sectors. It offers bond loans ranging from €100,000 to €2.5 million, without collateral or personal guarantees, with a response in less than 48 hours and a simple process for business leaders.

👉 In the UK, Funding Circle has become a reference for SMEs. Companies can obtain between £10,000 and £750,000, over a period of up to 6 years. The process is quick — online form in minutes, response often within an hour, funds available in about ten days — but may involve a personal guarantee from the business owner.

The platform also offers a specific solution: Asset Finance, which allows companies to finance the acquisition of business assets (equipment, vehicles, machinery) or refinance existing ones to free up cash. Amounts can reach up to £5 million, with terms of 1 to 7 years, using the financed asset as collateral. An interesting option for SMEs wishing to invest in their production tools while preserving cash flow.

👉 In the US, the Kiva platform stands out for its social focus. It is a microcredit platform granting loans up to $15,000, with no interest, no fees, and no collateral. Kiva does not rely on your credit score, but on your reputation and community support — the principle of “social underwriting.”
The loan is available to any U.S. entrepreneur, without requiring credit history, but access depends on your support network.
Kiva particularly targets entrepreneurs underserved by banks: women, minorities, young businesses, and those in disadvantaged areas. It is a social response to financial exclusion, with strong impact, even if the loan amounts remain modest.

With careful research, it is generally possible to find a platform adapted to your needs, whatever your profile or country. French SMEs wanting to finance a renewable energy project, UK businesses looking for working capital, or American entrepreneurs excluded from the traditional banking system: each can access a crowdfunding solution, provided they choose the right platform.

But overall, this type of financing is best suited to established companies or entrepreneurs with a solid project to present. It is an interesting alternative to bank credit, but certain limits must be kept in mind: sometimes high interest rates, significant platform fees, the need to share sensitive financial data, and in some cases, the requirement of a personal guarantee.

Investing in alternative finance: what are the options?

From regular interest payments to potential long-term capital gains, alternative finance offers different paths for investors. Let’s take a closer look at the two main options available today.

Crowdlending to diversify investments

For investors, crowdlending is increasingly appealing to those seeking to boost their portfolio beyond regulated savings accounts or life insurance. The principle is simple: instead of entrusting savings to a bank, the investor lends directly to individuals or companies via a specialized platform. In return, they receive regular interest payments, with advertised returns usually between 3% and 8% per year, sometimes more depending on the project type and risk level.

👉 The platforms mentioned earlier for borrowers are also available for investors.

• PeerBerry stands out for its accessibility: it is possible to invest from as little as €10, with average returns of about 9–10% per year.
• Lendopolis allows investments from €20 (sometimes more depending on the project), with average gross returns between 4% and 6% per year.
• Investbook has a higher entry ticket at €500. Returns are fairly stable, between 2% and 8%.
• Prosper Marketplace sets a minimum of $25 per loan. Current investor returns hover around 5% per year.
• Funding Circle has not offered retail investment opportunities since March 2022, focusing solely on institutional financing.

⚠️ As always, the risk of default exists. In the event of non-repayment, the investor can lose part or all of their capital. Crowdlending remains a diversification tool to be handled carefully, spreading funds across several projects and investing only what you can afford to lose.

Crowdinvesting for startups

Another option is crowdinvesting, which allows investors to take direct equity stakes in startups. Unlike crowdlending, this is no longer about lending money with expected repayment, but about becoming a shareholder. The investor may achieve a significant capital gain if the startup succeeds, but must accept the risk of total loss if it fails. One must also keep in mind that these investments are illiquid: unlisted shares cannot be freely resold, and one usually has to wait several years for an exit — through a sale, buyback, or IPO.

👉 In Europe, Republic Europe (formerly Seedrs) is a leader in equity crowdinvesting. The platform allows individuals to invest in a wide range of international startups. The minimum investment is particularly low — just €20, making this type of investment accessible to many savers. In terms of performance, returns are announced at 7–10%, though no official figures are published.

WiSEED is one of the first French crowdinvesting platforms, specializing in startups, innovative SMEs, as well as real estate and renewable energy projects, with a minimum investment of €100. It regularly publishes performance statistics, with gross returns reaching 12% and averaging around 9%.

Sowefund also allows investments from €100 in startups and innovative SMEs, co-investing alongside professional funds and business angels. The platform highlights a rigorous selection process aligned with venture capital standards. It announces returns of about 9%, though no consolidated statistics are provided.

👉 In the U.S., Republic, the parent company of Republic Europe, allows individuals to invest in a wide range of American startups. The entry ticket varies significantly by project (from as low as $10, but most range between $25 and $250). The platform has also diversified into real estate, gaming, and blockchain. In terms of performance, Republic claims a 12% return.

StartEngine, on the other hand, is a major player with more than one million registered investors. Each campaign sets its own minimum investment, making access flexible and adaptable to different investor profiles. The reported return rate is around 12%, though no figures are disclosed.

The potential for gain can be significant: some platforms highlight companies that became well-known after raising funds from the public (with returns on investment of up to 68%). Reality is more nuanced: according to a study, about 90% of startups fail, and only a minority achieve sustainable growth. In other words, the probability of losing all or part of your capital is high. Crowdinvesting is therefore best suited for experienced investors, willing to lock up their money for years and aware of the importance of broad diversification to mitigate risk.

Which criteria should guide your choice?

For borrowers

Three simple questions should be asked:

• What is the urgency of your needs?
• How much do you need?
• How quickly can you repay?

Cash advance apps are suitable for occasional emergencies and small amounts. P2P lending is better suited for structured projects, with larger amounts and potentially more attractive rates. As for crowdlending, it is mainly aimed at SMEs looking for alternative financing.

Summary table – borrowers

For investors

The choice depends on your profile:

• Expected return: modest but more predictable, or ambitious and risky?
• Investment horizon: short/medium term (loans) or long term (equity)?
• Risk tolerance: ready to lose part (or even all) of your capital?

Crowdlending appeals to those looking for regular returns over a few years, P2P attracts investors willing to take a bit more risk for 7–10% yields, while crowdinvesting targets long-term profiles, ready to lock in their money for several years with high potential gains… but also the risk of total loss.

Summary table – investors

What limits and precautions?

Alternative financing solutions are attractive for their speed, accessibility, and the promise of diversification. But they also carry real risks that should not be underestimated.

👉 For borrowers: A loan, even a small one, is still a debt. Multiplying loans can quickly create a snowball effect and lead to over-indebtedness. A cash advance can save the day to cover an unexpected bill or avoid a bounced payment, but it should not become a monthly habit. Before signing, take the time to compare interest rates and carefully check early repayment conditions. For example, some apps charge additional fees for early repayment, which can turn a one-time solution into an expensive trap. Finally, make sure the platform is authorized by the competent regulatory authority in your country.

👉 For investors: The appeal of advertised returns (sometimes above 8 or 10% per year) should not make you forget the inherent risk. Unlike a savings account or life insurance, your capital is not guaranteed. A company can go bankrupt, an individual may stop repaying, and you may lose part — or all — of your investment. This is why diversification is essential: spreading your money across multiple projects, platforms, and sectors reduces the impact of a single default. Only invest money that you are prepared to lock away and potentially lose.

👉 On the regulatory side: rules differ from country to country. In France, the ACPR (Prudential Supervision and Resolution Authority) and the AMF (Financial Markets Authority) oversee the sector. In the UK, this role falls to the FCA (Financial Conduct Authority), while in the United States several bodies are responsible, including the SEC, FINRA, and the CFPB. In all cases, it is strongly recommended to verify that the platform is properly licensed before committing your funds.

The bottom line: speed, security, or potential?

It all depends on your profile and priorities.

• Urgent need? Cash advance apps provide quick relief… but beware of the cost.
• Structured project? P2P lending combines flexibility and structure.
• Entrepreneur? Crowdlending offers a credible alternative to traditional banks.
• Curious investor? Crowdinvesting can yield big rewards, but you must accept the risk.

In the end, there is no one-size-fits-all solution. The key is to identify your need, assess the cost or expected return, and choose the tool that truly matches your situation… without ever losing sight of risk management!