Funding Circle (UK, US) Reviews: Peer-to-Peer Lending for Businesses
Did you know Funding Circle has helped over 143,000 small businesses get loans in the US and UK? This shows how big of an impact peer-to-peer lending has in today’s world. Funding Circle is a leader in alternative lending, making it easier for small businesses to get loans.
Started in 2010, Funding Circle is based in the UK but also helps entrepreneurs in the US, Germany, and the Netherlands. It uses new technology and strong risk models to make getting loans faster and clearer for business owners.
Funding Circle has a 5-star rating on Google and is a BBB accredited business. This has earned it the trust of many entrepreneurs. Over 90% of US borrowers say they would recommend Funding Circle to others. This shows the company’s dedication to making loans accessible and affordable for small businesses.
Key Takeaways
- Funding Circle has facilitated loans for over 143,000 small businesses in the US and UK
- The platform offers business term loans ranging from $25,000 to $500,000
- Funding Circle boasts a 5-star rating on Google and BBB accreditation
- Over 90% of US borrowers would recommend Funding Circle to others
- The company combines advanced technology with robust risk management for efficient lending
- Funding Circle has expanded its services to multiple countries, including the US, Germany, and the Netherlands
Introduction to Funding Circle: A Global Leader in Business Financing
Funding Circle has become a big name in the loan market since 2010. It uses technology and new ways to manage risk to help small businesses get loans.
The Origins and Mission of Funding Circle
Funding Circle started during a tough time, aiming to offer new ways to finance businesses. It wants to make lending to small businesses easier and more efficient. Since starting, it has given out over $13.1 billion in loans to more than 118,000 businesses. This has helped create about 135,000 jobs.
Funding Circle’s Expansion from UK to US and Beyond
Funding Circle began in the UK and then grew to the US. It now also works in Germany and the Netherlands. Its success led to it being listed on the London Stock Exchange in September 2018, under the ticker symbol FCH.
The Company’s Unique Approach to Small Business Lending
Funding Circle is known for blending the good parts of SBA loans with a simple process. It offers loans from $25,000 to $500,000, with repayment times from six months to seven years. The interest rates range from 6% to 15%, meeting different business needs.
| Metric | Value |
|---|---|
| Total Loans Facilitated | $20.2 billion |
| Businesses Served | 135,000 |
| Investor Base | 100,000+ |
| Borrower Satisfaction | 92% |
Funding Circle’s fresh ideas and rapid growth are changing the way small businesses get loans worldwide.
Funding Circle’s Loan Products and Services
Funding Circle provides various unsecured business financing options. These are made possible through peer-to-peer investing. They meet different business needs and financial situations.
Business Term Loans: Features and Benefits
Funding Circle’s business term loans offer significant funding for established companies. Loans range from $25,000 to $500,000. Repayment terms are from six months to seven years.
Interest rates start at 7.49% per year. This makes these loans competitive in the market.
SBA 7(a) Loans: Simplified Application Process
For businesses looking at government-backed financing, Funding Circle has SBA 7(a) loans. These loans are from $30,000 to $500,000 with a 10-year term. Interest rates are the prime rate plus 2.75% to 4.75%.
The application process is easy. Funds are usually disbursed within 14 days. This is faster than the industry average.
Business Line of Credit: Flexible Financing Option
Funding Circle’s business line of credit is flexible for companies with changing cash flow needs. Credit lines up to $250,000 are available. Borrowers only pay interest on the amount drawn.
This option gives businesses on-demand access to funds.
| Loan Product | Amount Range | Term | Interest Rate |
|---|---|---|---|
| Business Term Loans | $25,000 – $500,000 | 6 months – 7 years | Starting at 7.49% per year |
| SBA 7(a) Loans | $30,000 – $500,000 | 10 years | Prime rate + 2.75% to 4.75% |
| Business Line of Credit | Up to $250,000 | Revolving | Varies |
Funding Circle’s loan products combine unsecured business financing with peer-to-peer investing. This mix offers businesses access to capital with competitive rates and flexible terms. It supports growth and financial stability.
Qualification Requirements for Funding Circle Business Loans
Funding Circle is a top fintech company in alternative lending. They have specific criteria for small business loans. These rules help manage risk and support growing businesses.
To get a Funding Circle business loan, companies need at least two years of operation. This shows the business is stable and viable. The main business owner must also have a personal credit score of 660 or higher. This shows they are financially responsible.
Funding Circle looks at each application in detail. They consider revenue, cash flow, and customer feedback. There’s no strict revenue rule, but the average borrower is impressive:
- 11 years in business
- $1.4 million in annual sales
- 12 employees
These numbers show Funding Circle’s focus on established businesses. They want to help these businesses grow through alternative lending.
| Loan Feature | Requirement |
|---|---|
| Minimum Time in Business | 2 years |
| Minimum Credit Score | 660 |
| Bankruptcy History | None in past 7 years |
| Loan Amount Range | $25,000 – $500,000 |
| Minimum Annual Revenue | $400,000 (last 2 calendar years) |
Funding Circle aims to support established businesses. They do this while keeping a responsible lending approach in the fintech sector.
The Application Process: From Submission to Funding
Funding Circle is a top online lending platform. It offers a simple application process for businesses looking for peer-to-peer loans. The whole process is designed to be quick and easy to use.
Step-by-Step Guide to Applying for a Funding Circle Loan
The application begins with an online form that takes about six minutes to fill out. After you submit it, you get a personal account manager. They talk about your business needs to give you a custom experience.
Required Documentation and Information
Funding Circle needs certain documents to process your application:
- Business and personal tax returns
- Bank statements
- Driver’s license information
These documents help underwriters check if you’re eligible. They also offer the right terms for you.
Approval Timeline and Fund Disbursement
Funding Circle is known for its fast approval times. Underwriters usually decide within 24 hours. After you accept the offer, the funds are sent out quickly.
| Process Step | Timeline |
|---|---|
| Application Completion | 6 minutes |
| Decision Making | Within 24 hours |
| Fund Disbursement | 1-5 business days |
Most borrowers get their funds in five days. Some can get it in just one business day. This fast process makes Funding Circle stand out from traditional banks.
Funding Circle (UK, US) Reviews: Peer-to-Peer Lending for Businesses
Funding Circle has become a big name in peer-to-peer investing. It’s a top loan marketplace for small businesses. In 14 years, it has helped over 150,000 businesses get £16.9 billion in finance.
Customer Experiences and Satisfaction Ratings
Funding Circle is known for its excellent service. It has a Trustpilot rating of 4.6 out of 5 stars from over 15,000 reviews. A huge 83% of reviewers gave it a perfect 5-star rating.
They love the easy application, the helpful support team, and the good loan rates. This shows Funding Circle has earned the trust of its users.
Pros and Cons of Borrowing from Funding Circle
Funding Circle offers great rates and quick funding. Its simple SBA loan process helps many small businesses. Investors get returns from 4% to 6.5% in the UK.
However, some borrowers find the high credit requirements and need for collateral tough. These are the downsides of using Funding Circle.
Comparison with Traditional Banking and Other Online Lenders
Funding Circle is faster and more flexible than traditional banks. Since 2010, it has lent over £5 billion. It’s one of the biggest P2P lenders worldwide.
It operates in four countries and is regulated by the Financial Conduct Authority in the UK. Funding Circle is a standout in crowdfunding for its global reach and strict rules.
Source Links
- Funding Circle Review
- Fast, Affordable Small Business Financing
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- Funding Circle
- Funding Circle Business Loans Review 2024
- Funding Circle Review – My Lender Experiences After 5+ Years
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- Funding Circle Review: How Good are Their Business Loans?
- Funding Circle Review – P2P Loans for Borrowers and Investors – Good Financial Cents®
- Funding Circle – The Peer to Peer lending marketplace for small business loans
- Peer-to-Peer Lending for Small Businesses
- Funding Circle Review: 5+ Years of Personal ROI Data Posted
