Funding Circle
Funding Circle’s product is a term loan with monthly repayment, structured similarly to a traditional bank loan product.
Excellent 9.5/10
2532 reviews 

Funding Circle offers term loans that are very similar to a traditional bank loan. They will look at both your personal and business credit, as well as your income and expenses for both you and your business.

Once you’ve submitted an application with Funding Circle, you will need to speak with the credit team before they can make a decision. Funding Circle has strict criteria for good reason, they are one of the largest lenders in the industry.

NO AFFECT TO YOUR CREDIT SCORE

What DOES Funding circle OFFER?

Funding Circle offers a term loan with monthly repayment, structured similarly to a traditional bank loan product.

What Do I Need to Qualify?

  • Business Must Be Incorperated

  • Business Bank Account

  • Annual Revenue: N/A

  • Credit Score: 620+

  • Business Age: 2 years+

  • Profitability: No

 

HOW DO I APPLY?

When Applying Funding Circle will pull your credit, but will perform a hard credit pull only after your submit your application. Funding Circle pulls their credit from Experian. 

Apply Here with Funding Circle

Funding Circle Financing at a Glance

Funding Circle offers some of the most affordable business loans that can be found online. Although their loan can used for almost all business purposes, they are a particularly great company to consider if you are interested in consolidating any of your currently outstanding business debt.

loan amount

$25,000 - $500,000

Loan Term

1 - 5 years

LOAN rates

5.49% - 27.79%

speed

5 to 15 days, depending on how fast the borrow can provide a full application. On average, Funding Circle's time to funding is 7 days.

Funding Circle cannot work with the Business types below:

  • In Nevada

  • That are sole proprietors

  • That are in the following industries: Pornography, guns and ammunition, speculative (such as real estate development), aviation, general contractors, HVAC/plumbing, investment management, investment banking, and trucking and commercial.

  • That are using their loan to purchase titled assets

Other Important Eligibility Factors for Funding Circle:

  • Funding Circle requires you have a business bank account.

  • Funding Circle can work with businesses that have had less than 5 tax liens in past 10 years, pending that they can provide proof of payment on those tax liens. If you have had less than 5, Funding Circle will require you are on a payment plan if those liens are not paid off.

  • Funding Circle requires any owner of a business that owns more than 20% to sign onto the loan.

  • Funding Circle will check your business credit score but there is no minimum score required.

  • Funding Circle required 7 years to have passed since discharge if you’ve ever filed for personal bankruptcy.

  • Funding Circle does not have a minimum debt service coverage ratio. They do, however, prefer the average is above 1. Learn more about debt service coverage ratio here.

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Getting Started With Funding Circle 

All in, Funding Circle’s underwriting process is very holistic. They will look at both your personal and business credit, as well as your income and expenses for both you and your business. They incorporate a global cash flow analysis, which can be calculated as follows:

(Personal income + Business EBITDA income)/(Personal debt + Business debt)

Once you’ve submitted an application with Funding Circle, you will need to speak with the credit team before they can make a decision.

After Funding Circle has received a full application, it takes them about 3 days to turnaround an offer. If you choose to accept the offer, it will take about 2 days to get access to the funds.

If you apply to Funding Circle and are denied, you are eligible to apply again in 6 months.

Most Customers who qualified had 

Annual Revenue
$80,000+
Time in Business
Over 2 Years
Credit Score
620+ 

What your business will need to apply? 

  • 6 months business bank statements

  • 2 most recent business tax returns

  • Your profit & loss statement for the past year

  • Copy of your driver’s license

  • Most recent personal tax return

  • Your balance sheet for the past year

  • Business debt schedule

Find out how much funding you qualify for with Funding Circle

What you should know about Funding Circle

  • Funding Circle does not have a prepayment penalty.

  • Funding Circle can approve loans in 5 to 15 days, depending on how fast the borrow can provide a full application. On average, Funding Circle's time to funding is 7 days.

  • Funding Circle will pull your credit, but will perform a hard credit pull only after your submit your application. Funding Circle pulls their credit from Experian. Learn more about credit pulls here.

  • Funding Circle will require a personal guarantee signed by all owners who own over 20% of the business.

  • Funding Circle can take 2nd position to another lender, but that must be examined on a case-by-case basis.

  • Funding circle has a monthly remittance schedule.

  • Funding Circle charges an origination fee between 1.49% and 4.99%. Other than the origination fee, Funding Circle does not have any additional fees.

  • Funding Circle will file a blanket UCC lien on your business if (and only if) you receive funding from them.

  • Funding Circle does not report to the personal credit bureaus or the business credit bureaus.

  • Funding Circle will qualify you for a loan size that's no more than 30% of your annual revenue.

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Funding Circle Reviews: The Underwriting Process

Funding Circle’s underwriting process is very unique. In a recent interview with Fundera, Funding Circle’s Senior Underwriting Manager, Chris Capecelatro explains their process as follows:

“Funding Circle is a marketplace, not a balance sheet, lender. Through our marketplace, we match creditworthy small businesses who need capital with investors looking for yield. Understanding the viability of your business over the long term is dependent upon the liquidity of your marketplace is a revelation for a credit professional.

With a traditional balance sheet lender, each credit risk goes onto your balance sheet, and hits your bottom line in the event of a default. At Funding Circle, the ripple effect is larger: a default also dampens investor confidence in our marketplace. Being mindful of how both sides of the coin – borrowers and investors – ­affect our business actually makes us better underwriters.

Because we are ultimately all invested in this business, we evaluate the credit quality of each and every deal with our investor hats on to accurately assess and price risk.”

All in, Funding Circle’s underwriting process is very holistic. They will look at both your personal and business credit, as well as your income and expenses for both you and your business. They incorporate a global cash flow analysis, which can be calculated as follows:

(Personal income + Business EBITDA income)/(Personal debt + Business debt)

Once you’ve submitted an application with Funding Circle, you will need to speak with the credit team before they can make a decision.

After Funding Circle has received a full application, it takes them about 3 days to turnaround an offer. If you choose to accept the offer, it will take about 2 days to get access to the funds.

If you apply to Funding Circle and are denied, you are eligible to apply again in 6 months.

Funding Circle Reviews: Post-Funding

Once funded, Funding Circle will start debiting funds one month after you receive the funds (and continue each month until the loan is repaid).

If you get funded with Funding Circle, you can reach out to your broker or personal account manager at Funding Circle to review the progress of your loan.

Although Funding Circle doesn’t have an online dashboard, they will send statements to your business address.

Funding Circle’s term loan amortizes, which means you’ll pay more interest in the beginning in the end, but also makes it easier to understand what you owe if you’re looking to pay the loan off early.

If you’d like to look at a loan renewal with Funding Circle, that can be done after 6 months into your original loan.

Funding Circle Reviews: Why Work With Them?

 

Funding Circle offers some of the most affordable business loans that can be found online. Although their loan can used for almost all business purposes, they are a particularly great company to consider if you are interested in consolidating any of your currently outstanding business debt.

If you have a lot of short-term debt or credit card debt, and feel you could qualify for better rates, consider chatting with Funding Circle about consolidating that debt with their medium-term loan product, switching to a monthly payment loan with lower interest rates. Please note this must be business debt, and not personal debt.

Also, as far as medium-term lenders go, Funding Circle can get you the financing you need relatively quickly. So if you need a large amount of funding but don't have time to wait around for a small business loan from a bank, Funding Circle might be a good lender to work with.

Funding Circle Reviews: When Are They Not a Fit?

Funding Circle offers a great product to small businesses, so there are very few circumstances when you shouldn’t consider them. The only two times it makes sense are if you find a better offer or you want to build credit.

For starters, as Funding Circle doesn’t report to the personal or business credit bureaus, it won’t help you get either credit score up. If this is a priority for you, you might want to consider a different lender.

As well, if you can qualify for a bank loan or an SBA loan, more often than not you can find better rates on these products than on a Funding Circle loan. There is also a chance you can find a lower rate from another online medium-term lender. It’s prudent to apply to a few different lenders just so you know who will get you the best possible rate.

The information contained on this page was sourced from fundera.com. We are not in anyway affiliated with fundera.com.This page is for informational purposes only.

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