Funding Circle Business Loans Review of 2024 (2024)

Pros Explained

• Few fees: For instance, there are no prepayment penalties, application fees, or monthly fees for standard business loans.
• Fast decision on loan approval: Approval of a term loan might take as little as 24 hours after all of the necessary documents are submitted.
• Quick funding of loans: Funding of a standard business loan might happen in as little as two days.

Cons Explained

• Steep credit score requirements: Generally, Funding Circle lends to borrowers with a FICO score of at least 620.
• High loan origination fee: Funding Circle charges a loan origination fee of 4.49% to 10.49%.
• Potentially high APRs: The APR for a loan ranges from 11.29% to 30.12%, at the time of writing.

Types of Business Loans Offered by Funding Circle

Funding Circle offers three primary types of business loans:

• Standard business term loan of $25,000 to $500,000 with a term up to seven years; a FICO score of at least 620 is required
• Business line of credit up to $250,000, with interest paid only on the money that’s drawn.
• SBA 7(a) loan of $50,000 to $5 million with a term up to 10 years; a minimum FICO score of 650 is required

Loans aren’t available to businesses in the following industries:

• Speculative real estate
• Nonprofits
• Weapons manufacturing
• Gambling
• Marijuana sales
• p*rnography

Some of Funding Circle’s term loans require collateral, such as business or personal assets.

The company’s SBA 7(a) loans are designed for purposes such as purchasing inventory, supplying working capital, buying equipment, and consolidating debt. SBA 7(a) loans of $25,000 or less require no collateral, while loans of $25,000 to $350,000 may require liens against assets. A loan above $350,000 requires collateral consisting of business assets, a personal residence, or investment real estate.

Business lines of credit are ideal for covering operating costs, paying for recurring expenses, preparing for a new project, or coming up with emergency funds, says Funding Circle. Some lines of credit are secured by collateral, but others are not.

Time to Receive Funds

Funding Circle says it takes as little as six minutes to apply and as few as 24 hours to be approved after all of the necessary paperwork is submitted. A borrower can receive loan funding in as little as 48 hours after a standard term loan is finalized. Same-day funding is available for a line of credit, while funding for an SBA 7(a) loan averages 27 to 49 days.

Borrower Requirements

Here are some general requirements for applicants seeking term loans from Funding Circle. These may not apply to every borrower or lending product.

• At least two years in business
• At least $50,000 in annual revenue
• Personal FICO score of at least 620 for business owners
• No personal bankruptcies among all business owners within the past seven years
• At least two years’ worth of business tax returns
• At least one year’s worth of personal tax returns
• At least six months’ worth of business bank statements
• Credit union membership required in some cases
• Collateral required for some loans

Funding Circle Business Loan Features

Features of Funding Circle’s standard term loans include:

• No application fee: No fee is charged when you apply for a loan.
• No monthly fees: No fees are charged for ongoing maintenance of your account.
• No prepayment penalty: No fee is charged for paying off the loan ahead of the final due date.
• Fixed interest rate: The APR for the loan won’t change.
• Fixed monthly payments: The monthly payments stay the same.

Customer Service

Customers can get in touch with Funding Circle by phone (weekdays from 7 a.m. to 4 p.m. PT) or email. The company boasts that each client is assigned their own account manager.

Customer Satisfaction

Generally, Funding Circle enjoys a solid reputation. However, some reviewers on the Better Business Bureau website complain about Funding Circle’s customer service, professionalism, and lending standards.

Applying for a Funding Circle Business Loan

Funding Circle accepts only online applications for its term loans. Here are some of the steps to take when you’re submitting an application:

• Select the size of the loan, such as $150,000.
• Choose the term of the loan, such as five years.
• Supply information such as your name, your business’s name, your email address, your phone number, and your business’s phone number.
• Provide business tax returns for at least the past two years.
• Provide personal tax returns for at least the past year.
• Provide business bank statements for at least the past six months.
• Offer collateral, such as business assets (in most cases).
• Complete a form listing debt obligations, such as credit cards, business loans, and cash advances.
• Fill out a form guaranteeing the loan. Every owner who controls at least 20% of the business must complete a personal guarantee form.

Alternative Business Loan Lenders

Article Sources

1. Funding Circle. "Contact."

2. London Stock Exchange. "Funding Circle Holdings PLC."

3. Trustpilot. "Funding Circle."

4. Better Business Bureau. "Funding Circle."

5. Funding Circle. "Support."

6. Funding Circle. “Explore Our Most Flexible Small Business Loans, With Funds in as Few as 2 Days.”

7. Funding Circle. "Business Loan."

8. Funding Circle. “Fixed Rates and No Hidden Fees.”

9. Funding Circle. “Time Is Money. Money Is Money. We Save You Both.”

10. Funding Circle. “SBA 7(a) Loans Through Funding Circle.”

11. Funding Circle. “Fast, Flexible Funding, Ready to Go Whenever You Need It.”

12. Funding Circle. "SBA 7(a) Loans."

13. Funding Circle. “What You Need for Your Business Loan Application.”

14. Funding Circle. “Get in Touch.”