Funding Circle Review

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Funding Circle

APR range

15.22% to 45%

Funding amount

Up to $500,000

Term

Up to 7 years

Min. credit score

660

Time to funding

As soon as 3 days after approval

Funding Circle stands out as a peer-to-peer lending platform catering primarily to small businesses seeking financing options beyond traditional bank loans. By connecting these businesses directly with investors, Funding Circle facilitates a smoother, more direct lending process. This innovative approach not only provides businesses with the capital they need to grow but also offers investors a chance to contribute to the success of these enterprises, potentially earning returns on their investments.

Funding Circle

Apply through Lendio How it works

APR range

15.22% to 45%

Funding amount

Up to $500,000

Term

Up to 7 years

Min. credit score

660

Time to funding

As soon as 3 days after approval

Funding Circle stands out as a peer-to-peer lending platform catering primarily to small businesses seeking financing options beyond traditional bank loans. By connecting these businesses directly with investors, Funding Circle facilitates a smoother, more direct lending process. This innovative approach not only provides businesses with the capital they need to grow but also offers investors a chance to contribute to the success of these enterprises, potentially earning returns on their investments.

Pros and cons.

Pros

Cons

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Loan offerings through Funding Circle.

Funding Circle offers term loans along with lines of credit, and SBA 7(a) loans through its partner network. This review will focus on Funding Circle’s term loan offering.

Funding Circle term loan quick facts
Loan amount rangeUp to $500,000
Time in business2 years
Minimum credit score660
Minimum annual revenue$50,000
Repayment scheduleMonthly
FeesOrigination fee: 4.49% to 8.49%
Late payment fee: 5% of missed payment
Funding speedAs soon as 3 days after approval

See if your business is eligible
for financing through Lendio.

How much money are you looking for?

Things to consider.

Wide range of loan amounts available.

One of the standout features of Funding Circle is the wide range of loan amounts it offers, ranging from $25,000 to $500,000. This makes it suitable for a breadth of business needs, from minor expansions or equipment upgrades to significant growth initiatives. 

Low minimum annual revenue requirement.

Funding Circle’s relatively low minimum annual revenue requirement of $50,000 opens the door for younger businesses to access financing. Often, small businesses struggle to secure loans due to stringent revenue thresholds imposed by traditional banks. By setting a more accessible minimum revenue figure, Funding Circle enables these smaller entities, which demonstrate growth potential and financial responsibility, to qualify for funding. 

Quick funding times.

Fast access to funds is a critical factor for businesses facing immediate financial needs or looking to quickly capitalize on expansion opportunities. Funding Circle addresses this need efficiently, with a turnaround time as quick as 3 days from approval. This rapid funding process is significantly faster than many traditional lenders, which can take weeks or even months to process loan applications. 

Collateral required on some loans.

For loans exceeding a certain amount, Funding Circle may require collateral to secure the loan. This is a common practice among lenders to mitigate the risk of default. Collateral can include business assets, such as property, inventory, or equipment, which Funding Circle would have the right to seize if the loan is not repaid according to the agreed terms. 

Higher minimum credit score requirement compared to other lenders.

Funding Circle’s minimum credit score requirement of 660 is higher than many alternative lending options available in the market. Businesses close to the minimum credit score should carefully evaluate their financial health and consider ways to improve their credit scores before applying, to increase their chances of approval and potentially secure more favorable loan terms.

Great customer reviews.

Funding Circle has an A+ rating with the Better Business Bureau and averages at 4.6 out of 5 stars on Trustpilot. Customer reviews often highlighted Funding Circle’s great customer service, easy application process, and quick funding times.

Evaluation

Funding Circle is best for:

When evaluating Funding Circle’s services, it’s important to consider the unique features and requirements of its loan offerings. Businesses with the following needs and qualifications may want to look into receiving financing from Funding Circle:

Where Funding Circle might fall short:

How to apply for financing from Funding Circle through Lendio.

Applying for financing through Funding Circle via Lendio is a streamlined process designed to connect your business with the funding it needs with minimal hassle. Lendio is a small business loan marketplace with multiple lenders that will help match small businesses with loans that suit their unique needs. Here’s how you can get started:

  1. Complete Lendio’s online application form: You will need to fill out a brief online application on Lendio’s website. The form asks for basic information about your business, such as its name, how long it’s been in operation, your monthly revenue, and the amount you’re looking to borrow.
  2. Documentation submission: Alongside your application, you will be asked to submit documents that verify your business’s financial standing. These could include recent bank statements, income statements, balance sheets, and tax returns. Having these documents ready in advance can speed up the process.
  3. Review and acceptance: Once your application is submitted, Lendio will match you with potential lenders that fit your needs. If Funding Circle is a good fit for your financing requirements, you will receive an offer outlining the terms of the loan. Review these terms carefully to ensure they align with your business goals and repayment capabilities.
  4. Finalize the deal: If you decide to proceed with Funding Circle, you will work directly with their team to finalize the loan details. This may involve additional verification steps or documents.

The bottom line.

Funding Circle’s innovative platform offers a unique and efficient solution for small businesses in need of funding, connecting them directly to investors with capital to lend. Its commitment to transparency, range of loan options, and rapid funding times stand out in the crowded marketplace of business financing. While it may not be the perfect fit for every business, its benefits can be substantial for the right candidates.

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FAQs

Funding Circle was founded in 2010, helping over 135,000 small businesses receive more than $20.2 billion in financing. The lender is accredited with the Better Business Bureau and has an A+ rating with the institution.

You should have a credit score of at least 660 to qualify for a small business loan from Funding Circle.

No, Funding Circle is not a bank. Instead, it is a lending platform that partners small businesses with investors who want to lend money to them.

12+ years of serving
small business.


$15+ billion in SMB funding


75+ lenders in our network


400,000+ total loans funded


*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (June 25, 2024). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.