Why would someone choose small online peer to peer loans instead of bank loans? Because bank loans have complicated procedures and a long process. A project, from investigation to review and final approval must pass through many steps. For a business, time is money, and many projects can't wait for this process. Investments need to seize opportunities in order to make money. Especially under the relatively tight conditions of macro-control, bank funds are strictly controlled by national macro-control. Even the loan size and capital plans of quality clients are strictly restricted, not to mention other clients. Furthermore, if a small amount of capital was borrowed through a bank it simply wouldn't be worth it. So, when the capital demand isn't very large - for example over 10 million RMB - businesses generally choose peer to peer lending even if it means paying high interest rates. Businesses will still borrow in order to survive. http://www.xunro.com/