- Funding Circle is known for offering fast, affordable loans with fixed rate terms to businesses with an established history.
- For small businesses that want to avoid the slow and cumbersome aspects of traditional bank lending, Funding Circle offers an attractive alternative.
- Funding Circle loans can also be a good alternative to the U.S. Small Business Administration (SBA) 7(a) loan due to higher maximum loan amounts, faster time to fund, and a shorter and less complicated application process.
What is the Funding Circle?
Funding Circle is an online lending platform that offers small business loans using peer-to-peer lending, connecting small business investors in the US, UK, Netherlands and Germany. They are the largest small business loan provider online and have specialized in small business loans since 2010.
As an online lender, Funding Circle does not have physical locations or bank branches, and they do not offer other financial services like checking accounts. But like other online lenders, they tend to provide faster approvals, faster funding, and less stringent application procedures.
With a completely online application, small business owners can see their loan options quickly and can get funding in as little as two business days after approval. In terms of small business financing, Funding Circle offers a lot to qualifying small businesses.
Funding Circle Competitors
There are many lenders, online and offline, that focus on small business loans. Here are some of Funding Circle’s main competitors in the United States:
- On the bridge
- loan club
Outside of the US, Funding Circle also competes with lenders like iwoca, Zopa, and Assetz Capital.
Who is Funding Circle for?
Although they focus on small businesses, Funding Circle is not good for startups or business owners with unestablished creditworthiness. It’s a good idea to learn how to establish and improve business credit if you’re looking to improve your loan offerings.
Funding Circle is best for established businesses with at least two years of business experience and a personal credit FICO score of at least 720 or higher for majority owners. They will not lend to Nevada businesses or those working in the following industries:
- Manufacturers of firearms or weapons
- Gambling companies
- Cannabis or marijuana dispensaries or developers
- Non-profit associations
- Speculative real estate
What does Funding Circle offer?
Funding Circle offers business term loans with long repayment terms and low monthly payments. They are known for having a free and easy application process that won’t affect your credit score. They also offer a faster application process and funding time, especially compared to traditional banks or SBA loans. Compared to short-term lenders, they offer lower interest rates, usually in the single digits. Funding Circle also does not apply prepayment penalties, so you can prepay your loan free of charge.
The lender will assign you an account manager once you have completed your application, and they will guide you through the application process, approval and funding.
You can use your funds for almost any business expense, including equipment purchases, inventory purchases, expanding an existing location or purchasing real estate for a new location, or l hiring and retaining staff.
Funding Circle Calculator
Wondering what your monthly payment would look like with a Funding Circle loan? You can determine this based on your loan amount, interest rate, and repayment terms.
Nav has created a loan calculator to help you figure out how much you’ll pay over time. Check it out:
Funding Circle Fees and Fees
How to Qualify for Funding Circle Business Loans
Eligibility for Funding Circle business loans includes:
- 720+ FICO Credit Score for Majority Owners
- At least two years in business
- No bankruptcy filings in the last seven years
- Personal income tax returns for any guarantor holding a 20% or more interest in the company
- Personal guarantee of at least 60% ownership of the business
How to Apply for a Funding Circle Business Loan
Funding Circle’s loan application is completely online. Borrowers can complete the application in less than six minutes and receive their approval notification within 24 hours.
To apply for a Funding Circle business loan, make sure you have the following documents:
- Two most recent business tax returns
- Two most recent personal tax returns (for all guarantors)
- Six months of the most recent bank statements from the main bank account
- A guarantor form for each additional owner who owns more than 20% of the capital of the company (at least 50.1% of the ownership must be signed)
Then, visit the Funding Circle website and apply by giving them:
- The loan amount you think you need
- The duration of your loan that you want
- The legal name of your business
- Last name and first name of the majority owner of the business
- Your email
- Business phone number
- phone number
You can also choose whether you want Funding Circle to offer you loans from its partners.
Funding Circle Client Reviews
According to Funding Circle reviews, the lender has a good reputation among its customers. They have an A+ rating from the Better Business Bureau (BBB) and a 4.6-star rating from Trustpilot.
These ratings are accurate at the time of publication. Please check directly with each resource for the most recent ratings.
Funding Circle Frequently Asked Questions (FAQ)
How is Funding Circle different from a bank?
Funding Circle is an online lender that uses peer-to-peer lending to lend to small businesses. This means that they help accredited institutional investors find ways to invest in small businesses. They also act faster than most traditional banks, working to get your small business financed as quickly as possible.
How do I apply for a loan with Funding Circle?
To apply for a loan from Funding Circle, gather the documents (listed above) and visit their website. You’ll need to know how much you want to borrow and how long you want to pay it back, and provide contact information and a bit about your business. Once you submit your application, you will be assigned an account manager. They will help you submit the required documentation and guide you through the process.
What are the benefits of borrowing money from Funding Circle?
The main advantage of working with Funding Circle is efficiency and speed. The underwriting process is completed using technology and approval decisions are made in as little as one business day. Plus, because they report your loans to major credit reporting agencies, your payments can help you establish business credit.
Where is Funding Circle located?
Funding Circle has two US offices in San Francisco and Denver.
The Last Word from Nav: Funding Circle
If you are a small business owner with relatively good credit, an established business, and high annual income looking for a simple application process, fast approval times, and fast funding to quickly improve your fund turnover or your cash flow, Funding Circle may be a good choice for you.
Nav can help you compare lenders, loan types, and business financing options, including a line of credit, business credit cards, merchant cash advance, or other options. Find out which financing options you are most likely to qualify for by register for a free Nav account today.
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