Article by Chris Costi, Last update at November 25, 2019
Funding Circle originated in the UK and expanded their services to the US by merging with Endurance Lending Network in 2010. They offer medium term loans of up to $500,000 to established businesses with terms that range from 6 months to 5 years. Funding Circle has helped over 77,000 small businesses in the UK, US, Germany and the Netherlands with funding through more than 92,000 investors with over $9 billion. They are a leading global small business loans platform and are listed on the London Stock Exchange. A quick application will determine if you qualify for a loan, and a dedicated account manager will help you manage your repayments. Primarily, Funding Circle connects creditworthy businesses looking for finance with organizations who have money to invest. Their platform is efficient and transparent and investors have online accounts that are accessed to finance loans for thousands of small and medium sized businesses. Funding Circle is the go between investors and borrowers, they review applications and approve creditworthy businesses for loans and process repayments for investors. They manage the loans for the full term and process interest earned for investors after fees and taxes. Investors do very well and it is estimated that they earned over $300 million since 2010.
Funding Circle offers fixed annual interest rates with predictable repayments. The rate you receive will depend on your credit rating and you can expect to pay more for longer term loans. The rates advertised on the Family Circle website are 4.99% to 17.49% for 6 months, 6.99% to 18.49% for one year, 7.49% to 19.49% for two years, 7.99% to 20.49% for three years, 8.49% to 21.49% for four years and 8.99% to 22.99% for five years. Other fees you can expect to pay is an origination fee of 3.49% to 6.99% which is a once off charge to cover costs of evaluation of your loan. There are no other charges if you keep up with your monthly repayments. Late payment fee is 5% of missed payment. If you meet the criteria, you can apply for short and long term loans of up to $500k, with rates as low as 4.99%.
Funding Circle is highly rated and has been accredited an A+ by the BBB. They also invest in helping women owned businesses and minorities with affordable loans of up to $500,000. It is also worth considering consolidating your business debt with a loan so that you only have a single payment. Funding circle offers small business owners financing options that are cost effective and easy to manage. Their philosophy is to connect investors with small businesses that need short term loans with quick approval and feasible terms. Small businesses form a huge part of the economy and they need finance in order to grow. Funding Circle ensures that finance is accessible to small businesses who meet the qualifications set. There is no need for meetings or business plans and the application only takes a few minutes. A dedicated account manager is assigned to your account for all the support you need.
Funding Circle is an online lending marketplace that offers secured loans to small and medium sized businesses. Funding Circle offers their services to all 50 states in the U.S since 2010. Based in California the company has assisted thousands of businesses with over $10 billion in term loans. The application process is easy to understand and you can expect fast decisions if you meet the set criteria for a loan. You will need to have a good financial record and at least two years of business experience in order to qualify. Personal and business collateral and proof of income will be required. Small business loans are typically required for expansion, refinancing, inventory purchase and payroll.
Let’s Dive Deeper
In order to qualify for a loan with Funding Circle you must be in business for at least 2 years and have a credit rating of 620. In addition you have to prove that you have not had any bankruptcies over the previous seven year or any tax liabilities over the last 10 years. There is also a prohibited industry list which includes real estate, weapon manufacturers, gambling establishments, marijuana dispensaries, non-profit organizations and pornography. Your interest rate is determined by how long you have been in business, your cash flow, your business strength and your creditworthiness. Another factor that affects your interest rate is the term length of your loan. Family Circle expects collateral of personal guarantees and business assets.
Funding Circle will let you pay of your loan in 6 months up to 5 years. If you pay your installments early you can save money on interest costs. Payments are monthly and begin the day your loan is approved. To calculate your repayments you can use the loan calculator on Funding Circle’s support page. The cost of your loan includes interest and the origination fees. The only other charges you can expect to pay is if you default or are late with your monthly repayments.
Applying for funds is fairly simple and it involves completion of an online application. This is a pre-qualifying form to verify if you meet the basic criteria. Once approved you will get a quote and a representative will call you to discuss your options. You will need to provide additional documentations and information and Funding Circle will conduct a hard credit check on your business. You will need to submit business tax returns for the last 2 years, personal tax returns for one year, 6 months bank statements and business debt information. Your application will then be evaluated and you can expect to get a final quote within a day. Once approved by you, funds will be deposited into your account within a couple of days.
Funding Circle offers excellent customer support via phone and email. You will be assigned an account manager that will be available for any queries relating to your account. The quality of their customer service is highly rated by existing customers. Funding Circle also has a wealth of information on their well-designed website. The calculators and borrowing guides are very useful and you have easy access to all the information you need including guides and FAQ’s.
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