Founded in 2005, Prosper is one of the original peer-to-peer lending platforms (P2P platforms), connecting individuals and investors to fund everything from debt consolidation loans to home improvement projects.

But while Prosper personal loans have earned a loyal following for a streamlined loan process and flexible eligibility, they’re not always suited to healthcare. Patients seeking treatment often need same-day approval and immediate payment to their provider — not funding deposited days later to a personal bank account.

For practices, that delay can translate into canceled procedures, uneven cash flow, and lost revenue. Fortunately, a growing number of fintech lenders and online lending platforms now offer faster, healthcare-optimized financing designed to serve both patients and providers.

Here’s how Prosper works — and which modern alternatives offer a smoother path to care.

How Prosper Works

Prosper helped pioneer online lending, giving borrowers access to unsecured personal loans outside of traditional banks or credit unions. It offers fixed rates, repayment terms from two to five years, and funding amounts up to $50,000. APRs (annual percentage rate) typically range from 8.99% to 35.99%, with origination fees from 1% to 9.99% depending on creditworthiness.

The application process starts with online prequalification using a soft credit check. For those who submit an official application, Prosper performs a hard credit inquiry and full underwriting, which will hurt the borrower’s credit score.

Funding usually takes one to five business days. While that’s suitable for personal finance needs such as home improvement or debt consolidation loans, it’s less practical for same-day medical procedures.

For healthcare providers, Prosper’s P2P loans present challenges. Practices don’t receive loan proceeds upfront, meaning payment depends entirely on the patient’s follow-through. This gap makes Prosper less efficient as an integrated healthcare financing solution.

Key Takeaways

• Application process: Online prequalification via soft credit check; hard credit inquiry for full application; funding in 1-5 business days.
  
• Loan amounts: Up to $50,000.
  
• Terms: Two to five years (24–60 months).
  
• Interest & fees: APRs from 8.99%–35.99%; origination fees 1%–9.99%; no prepayment penalties; late fees possible.
  
• For providers: P2P lender with no point-of-care funding; slower disbursements tied to borrower accounts; no 0% APR offers; delayed treatment timelines.

Top Prosper Competitors for Healthcare Financing

While Prosper offers a versatile personal loan product, healthcare financing demands faster approvals, flexible repayment terms, and direct provider funding. With streamlined workflows, competitive interest rates, and patient-friendly repayment terms, the following Prosper alternatives are more suited to the healthcare space.

Cherry Payment Plans

Cherry is a healthcare-focused fintech lender built for medical, dental, aesthetic, plastic surgery, dermatology, and veterinary practices. Patients can apply through a 60-second online application and get an instant decision based on a soft credit check, which doesn’t hurt their credit score. Qualified borrowers can choose between short-term interest-free “Pay in 4” options or extended financing up to 60 months with true 0% APR. Loan amounts reach $50,000, and there are no deferred interest charges, origination fees, or prepayment penalties.

For providers, Cherry pays the office upfront — meaning there’s no financial risk if a borrower misses payments. With high approval rates across diverse credit profiles, Cherry providers increase treatment acceptance and patient satisfaction. Merchant fees are the lowest in the industry, approvals are exclusive to the provider, and dedicated customer support makes it easy for staff to focus on providing exceptional service instead of collecting repayment.

Key Takeaways

• Application process: 60-second application with soft credit check and instant approval decision.
  
• Loan amounts: Up to $50,000; funds available immediately upon approval.
  
• Terms: Pay in 4 or extended financing up to 60 months.
  
• Interest & fees: 0% APR options for qualified borrowers; no hidden fees such as deferred, retroactive, or compounding interest; no origination fees; no prepayment penalties.
  
• For providers: Upfront payment for enhanced cash flow; no risk if the patient defaults; 80%+ approval rate across credit profiles; lowest merchant fees in the industry; transparent terms strengthen patient trust.

LendingClub

Once Prosper’s closest competitor in the peer-to-peer market, LendingClub evolved into a more traditional bank after acquiring Radius Bank in 2020. It offers personal loans up to $60,000 with fixed rates and repayment terms from 24 to 84 months. APRs range from about 7.9% to 35.99% based on creditworthiness, and origination fees can run from 0% to 8%.

LendingClub personal loans are reliable but not designed for healthcare. Funding goes directly to the borrower’s bank account, typically in one to two business days, and there’s no integration for in-office approvals or patient financing management.

Key Takeaways

• Application process: Online form; hard credit check; approvals in 1-2 business days.
  
• Loan amounts: Up to $60,000; funds available 1-3 business days after approval.
  
• Terms: 24–84 months.
  
• Interest & fees: APRs ~7.9%–35.99%; origination fees 0%–8%; no prepayment penalties.
  
• For providers: Variety of loan products from auto loans to small business loans; no merchant fees; no direct funding; delayed payment timelines; no 0% APR options; higher origination costs than healthcare-focused lenders.
  

SoFi

SoFi is an online lender offering personal loans, home equity lines of credit, refinancing options, and loans for small business owners. Its digital-first application process delivers fast approvals with no origination fees and flexible repayment terms from two to seven years. Borrowers with strong credit profiles enjoy competitive APRs as low as 8.99%, while those with fair or bad credit may face higher interest rates — up to 35.49%.

For healthcare use, SoFi’s structure offers predictable financing for patients but lacks provider integrations. Funding is sent to the borrower, not the provider, so it’s less efficient for same-day or elective procedures.

Key Takeaways

• Application process: Online prequalification; hard credit inquiry for approval. Approval in up to 2 business days.
  
• Loan amounts: $5,000–$100,000. Funds available “a few” business days after approval.
  
• Terms: 24-84 months.
  
• Interest & fees: APRs from 8.99%-35.49%; no 0% APR options; no origination or prepayment fees.
  
• For providers: No merchant fees; reliable and reputable lender; large loan amounts; no merchant fees; not specialized for healthcare; no upfront provider payment; borrower-held funds delay treatment; no 0% APR options.
  

LightStream

LightStream, a division of Truist Bank, caters to borrowers with good to excellent credit seeking larger loans and lower interest rates. It offers unsecured personal loans up to $100,000 with low rates for qualified borrowers and no origination, prepayment, or late fees. Applicants with a strong credit history and high FICO score can secure some of the lowest rates available among online personal loan lenders.

However, LightStream isn’t built for point-of-sale healthcare financing. Funds go to the borrower, not the provider, and its underwriting process can take a few business days, which doesn’t suit immediate treatment scheduling.

Key Takeaways

• Application process: Fully digital; hard credit check.
  
• Loan amounts: $5,000–$100,000. Funds available as early as the business day following approval.
  
• Terms: 24-84 months.
  
• Interest & fees: APRs from 6.49%-24.89%; no 0% APR options; no prepayment penalties, origination fees, or late fees.
  
• For providers: No merchant fees; high loan amounts; variety of financial services; hard credit check hurts patient credit scores; no in-office application flow; borrower-directed funding; slower timelines than BNPL personal loan alternatives; no 0% APR options or embedded healthcare tools.
  

Upstart

Upstart stands out for using artificial intelligence and alternative data in its underwriting process, expanding eligibility for borrowers with poor credit scores or limited credit history. The platform offers personal loans from $1,000 to $50,000, with repayment terms between 36 and 60 months. APRs typically range from about 7% to 35.99%, depending on creditworthiness and income.

While Upstart broadens access for patients with less traditional credit profiles, it doesn’t offer healthcare integrations or same-day funding. Loan proceeds are paid to the borrower, and origination fees may apply, making it less practical for providers managing time-sensitive procedures.

Key Takeaways

• Application process: Online prequalification; AI-driven underwriting; hard credit check for approval; 1-3 day credit approval process.
  
• Loan amounts: $1,000–$50,000; Funds available as early as one business day after approval.
  
• Terms: 36–60 months.
  
• Interest & fees: APRs ~7%–35.99%; origination fees apply; no 0% APR options.
  
• For providers: Accessible for more patients but lacks direct practice integration; variety of financial products; no merchant fees; no 0% APR plans; hard credit check hurts credit report; delayed funding may impact scheduling and case acceptance.
  

Sunbit

Sunbit’s technology allows patients to apply quickly with a soft credit check and receive an instant decision, helping those with a broad range of credit histories — especially lower credit scores. Financing ranges up to $20,000, with repayment terms from 3-72 months. Some promotional offers include deferred interest, which means if the full amount isn’t paid off by the end of the promotional period, or if a single payment is missed during that time, interest is charged retroactively from the purchase date at a steep rate.

For providers, Sunbit is easy to integrate and offers relatively fast funding, but merchant fees tend to be higher than average, cutting into margins for higher-cost procedures.

Key Takeaways

• Application process: Online form with soft credit check; instant decision.
  
• Loan amounts: Up to $20,000.
  
• Terms: 3–72 months.
  
• Interest & fees: Promotional 0% deferred-interest offers; standard APRs up to 35.99%.
  
• For providers: Quick to integrate at the point of care; lower loan amounts limit usefulness for larger procedures; higher merchant fees than other healthcare-specific lenders; deferred interest can hurt patient trust and create surprise costs.
  

CareCredit

CareCredit functions as a medical credit card accepted at more than 270,000 healthcare providers. Patients can prequalify online with a soft credit check, but a full application requires a hard inquiry. If approved, borrowers can access a revolving line of credit up to $25,000. Promotional “No Interest if Paid in Full” offers make payments manageable, but these rely on deferred interest.

For providers, CareCredit comes with high merchant fees compared to other healthcare-focused lenders. Additionally, since patients can use their CareCredit account at any enrolled provider, it also lacks exclusivity for practice retention.

Key Takeaways

• Application process: Online prequalification; full credit check required for approval; instant approval decision.
  
• Loan amounts: Up to $25,000.
  
• Terms: Revolving credit line with promotional offers.
  
• Interest & fees: Promotional 0% deferred-interest promotions; standard APR ~32.99%; late fees apply.‍
• For providers: Large acceptance network and strong brand recognition; high merchant fees; deferred interest can hurt patient trust; limited exclusivity for returning patients.

Affirm

Affirm’s straightforward financing model offers short-term and monthly payment options with transparent pricing. Borrowers can pay in four interest-free installments or select longer plans up to 36 months. APRs range from 0% to about 30%, depending on the borrower’s credit score and purchase size.

For practices, Affirm provides an easy-to-use checkout experience but higher merchant fees compared to healthcare-focused platforms. Its loan limits are smaller, which may not suit high-cost treatments.

Key Takeaways

• Application process: Instant online approval with soft credit check.
  
• Loan amounts: Up to ~$17,500.
  
• Terms: 3–36 months.
  
• Interest & fees: APRs 0%–30%; no hidden or deferred interest; no prepayment penalties.
  
• For providers: Simple point-of-sale integration and wide consumer familiarity; no healthcare specialization; higher merchant fees; short terms and smaller loan offers limit use for major procedures.
  

Klarna

Klarna is a global leader in buy now, pay later financing, best known for streamlining retail checkout experiences. It offers Pay in 4, Pay in 30, and monthly plans, with soft credit checks for short-term financing and hard inquiries for extended plans. APRs can reach up to 29.99%, and late fees apply for missed payments.

While convenient for e-commerce, Klarna’s smaller loan amounts and lack of healthcare integrations make it less effective for large or urgent medical expenses.

Key Takeaways

• Application process: Soft credit check and instant decision for short-term plans; hard credit check and decision within 24 hours for monthly financing.
  
• Loan amounts: No publicly disclosed limit — typically lower; suited for small purchases.
  
• Terms: Pay in 4, Pay in 30, or extended monthly plans.
  
• Interest & fees: 0% on short-term plans; up to ~29.99% APR for long-term; late fees apply.‍
• For providers: Easy point-of-sale setup and strong brand recognition; small loan limits and short loan terms; higher merchant fees; not optimized for healthcare financing or larger procedures.

Provider FAQ

How does applying for healthcare financing affect my patients’ credit scores?

It depends on the type of financing. Most BNPL platforms like Cherry, Affirm, and Klarna use a soft check during the loan approval process, so there’s no impact on the patient’s credit score when they apply.

By contrast, personal loan lenders and medical credit card providers — such as Prosper, LendingClub, and CareCredit — perform a hard credit inquiry when patients submit a full loan application, which can temporarily lower their FICO score.

What’s the minimum credit score needed to be approved for healthcare financing?

There isn’t a universal minimum credit score for financing because eligibility requirements vary by lender. Many BNPL platforms use flexible underwriting powered by artificial intelligence, which allows approval for borrowers with fair credit or even lower credit scores. Cherry, for example, is an industry leader in approving borrowers across credit profiles.

On the other hand, personal loan lenders like Prosper and SoFi generally have credit score requirements between 560 and 680 or higher. Medical credit cards like CareCredit generally require good credit for approval, and some apps, like Sunbit, focus on borrowers with traditionally low credit scores. Other companies, like LendingClub and Prosper, allow borrowers to apply with a co-borrower to boost their odds of approval.

What is the difference between 0% APR and promotional 0% deferred-interest offers?

True 0% APR means the borrower pays no interest at all during the repayment period — even if it lasts several years. Cherry offers true 0% APR loans for qualified borrowers, no deferred interest, and no prepayment penalties.

Promotional 0% deferred-interest offers, used by companies like Sunbit and CareCredit, accrue interest behind the scenes. If the balance isn’t paid in full before the promotional period ends, or if a borrower misses a payment, interest is charged retroactively from the original purchase date. This can lead to ballooning debt and damaged patient trust.

How long will it take patients to get their loan?

Approval and funding timelines differ across lenders.

• BNPL lenders like Cherry deliver instant approval decisions with instant loan funding, so patients can start treatment immediately.
  
• Medical credit cards such as CareCredit provide instant approval but rely on revolving lines of credit rather than upfront payment to providers.
  
• Personal loan lenders like Prosper, LendingClub, or SoFi generally fund borrowers within 1–5 business days after approval. These slower timelines may delay care when patients need treatment quickly.

What can loan funds be used for?

Loan funds from personal loan lenders can be used for nearly any purpose, including home improvement, real estate, refinancing credit card debt, or medical procedures. In contrast, BNPL healthcare financing like Cherry is purpose-specific: loan proceeds are used exclusively for eligible medical, dental, veterinary, or aesthetic treatments at the approved practice.

Medical credit cards like CareCredit function as reusable lines of credit, allowing patients to cover a variety of healthcare-related expenses across participating providers. This versatility can be valuable to the patient, but to the provider, personal loans and medical credit cards don’t offer the guaranteed funding that BNPLs like Cherry do.

Is it easy for patients to manage their payments?

Yes. Most lenders offer secure online dashboards or mobile apps where borrowers can set up autopay, view repayment terms, and track monthly payments. BNPL lenders like Cherry and Affirm emphasize user-friendly apps that prevent missed payments.

Personal loan lenders such as SoFi and LightStream allow borrowers to manage loan options, refinance, or adjust repayment terms through their accounts.

What payment methods can borrowers use with BNPL solutions like Cherry, Affirm, and Klarna?

Patients can link a checking account, savings account, debit card, or credit card to make monthly payments, and even set up autopay for convenience. Many BNPL platforms also support digital wallets such as Apple Pay, Google Pay, or PayPal. In some cases, borrowers can even refinance or adjust payment dates through the app.

Do healthcare-focused lenders charge origination fees?

Many BNPL providers like Cherry do not charge origination fees or prepayment penalties. However, personal loan lenders such as Prosper, LendingClub, and Upstart often charge origination fees ranging from 1%–9.99%; and some healthcare-focused lenders like CareCredit and Sunbit rely on deferred interest for their promotional 0% APR offers.

Which are better, BNPL lenders, medical credit cards, or personal loan lenders?

It depends on your practice’s goals and patient base.

• BNPL lender, Cherry, specializes in healthcare financing, offering instant approval decisions, true 0% APR financing without deferred interest, the lowest merchant fees in the industry, and approvals exclusive to the practice.
  
• Medical credit cards like CareCredit are widely accepted but rely on limited funding, deferred-interest promotions, and carry higher merchant fees.
  
• Personal loan lenders like Prosper, SoFi, and LightStream provide larger loan amounts and flexible loan products, but slower funding, limited healthcare integration, and no guarantee of payment to the practice.

For most practices, healthcare BNPL platforms deliver the best balance of affordability for patients and profitability for practices.

Is our practice responsible for collecting loan funds?

No. BNPL lenders and personal loan lenders handle repayment directly with the borrower. The practice is paid upfront and bears no responsibility for collections or defaults.

With medical credit cards, the card issuer (such as Synchrony Bank) manages collections, late fees, and ongoing credit line activity, removing the administrative burden from your team.

Who handles customer service?

All three categories — BNPL lenders, personal loan lenders, and medical credit card issuers — manage customer support directly. Patients with questions about repayment terms, credit inquiries, or late payments contact the financing provider, not your staff.

For example, Cherry provides dedicated customer support, Affirm offers 24/7 chat assistance, and CareCredit manages inquiries through Synchrony’s service team.

Why should we offer financing at our practice?

Offering financing bridges the gap between treatment cost and patient affordability. It helps practices attract more patients, improve cash flow, and grow their small business. Flexible loan options and transparent terms empower patients to borrow money responsibly without resorting to credit cards or high-interest traditional loans.

By partnering with a healthcare-specific fintech company like Cherry, your practice can access competitive rates, reduce reliance on traditional financial institutions, and help patients move forward with confidence.

Conclusion

Prosper’s peer-to-peer loans make financing more accessible by connecting borrowers with funding outside traditional banks and credit unions. But when it comes to healthcare, their structure often falls short. Approval can take several business days, origination fees raise costs, and loan funds go directly to the borrower — not the provider — creating unnecessary delays in treatment.

Medical credit cards like CareCredit offer faster approvals but rely on deferred-interest promotions and higher merchant fees that can erode patient trust. Even the best personal loans aren’t ideal for healthcare. Online lenders like SoFi, LightStream, and LendingClub, while offering competitive rates and larger loan amounts, aren’t designed for same-day treatment or point-of-care funding.

That’s where Cherry stands apart. Built specifically for healthcare, Cherry combines a 60-second soft-credit-check application, instant approval decision, and true 0% APR financing options for qualified borrowers — never deferred interest. Providers are paid upfront, ensuring predictable cash flow and eliminating the risk of patient defaults. With the lowest merchant fees in the industry and high approval rates across credit profiles, Cherry helps healthcare practices increase treatment acceptance, boost revenue, and make care more affordable for every patient. Want to learn more? Claim your complimentary demo here.