Why would people 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 final approval, has to go through many steps. For companies, time is money. Many projects can't wait for this process. Investment needs to seize opportunities to make profits. Especially under the current tight macro-control situation, bank funds are strictly controlled by national macro-control. Even the loan size and capital plan of quality customers are strictly controlled, let alone other clients. Moreover, if borrowing small amount of money through banks, that would be too uneconomical. So when the capital demand is not very large, for example, over 1 million RMB, companies usually prefer private loans. Even though they need to pay high interest, they still borrow for survival. http://www.xunro.com/