The recent surge in use of alternative sources of entrepreneurial finance is viewed as transformative, providing entrepreneurs with an increased variety of resourcing options. Through exploring cognitive heuristics of entrepreneurs’ financing decisions, this study examines provision of disintermediated debt through online platforms. Heretofore unexamined demand side issues reveal valuable processual advantages for entrepreneurs, along with ancillary non-financial benefits. Our study reveals the multifaceted nature of the financing decision, and how alternative finance is compatible with long standing entrepreneurial preferences for control and managerial independence. Peer to peer lending overcomes a number of issues relating to agency, networks, and spatial aspects of financing. Contrary to previous research, we find that marketing and promotion, rather than raising finance, are of greater importance. Entrepreneurs’ preferences for locally provided equity finance have implications for investors and platforms, and disintermediation of finance presents challenges to traditional funders. The surge in use of alternative finance varies by and within sectors, although it is important not to overstate its revolutionizing potential. Rather, it provides entrepreneurs with an expanded variety of financing options, and complements rather than replaces traditional sources. It is likely more beneficial in countries lacking diversification in private debt and equity markets.