Funding Circle is an online peer-to-peer lending marketplace founded in 2010 in San Francisco, California. The company has assisted over 15,000 businesses globally and has lent over $10 billion in term loans.

The company believes in providing easy-to-understand application processes, fast decisions, and white-glove service to small businesses around the world. Funding Circle is faster than a bank and more affordable than a cash advance, giving borrowers access to funds in as little as one business day after offer is accepted. Funding Circle APRs start at 10.63 percent.

Typical borrowers through Funding Circle have been in business for 11 years. Small business owners also should not have any bankruptcies on record within the last seven years. Borrowers must be able to provide both personal and business collateral and show proof of consistent income.
 
Startup companies and business owners with bad credit will want to consider alternative lending options. Consumers that choose Funding Circle should remember that they must have a credit score of 620 or higher.
 
Small business loans from Funding Circle are typically used for inventory purchases, location expansion, debt refinancing, and payroll.
 

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The Good

  • Transparent Application Requirements
  • Resource Center
  • Other Benefits

Transparent Application Requirements

Funding Circle fully discloses its entire small business loan application requirements and fees on its corporate website. Small business owners can apply directly with lenders for the term length and exact amount needed. The secured loans can be used for a variety of purposes and feature low monthly payments with fixed interest rates. There are no penalties for paying off loans early.

Resource Center

Funding Circle offers small business owners an online resource center on its corporate website that features educational articles and financing tips from entrepreneurs. The website also features an FAQ section that answers commonly asked questions on loans through affiliated investors. Borrowers can also speak with loan specialists during normal business hours for more detailed information.

Other Benefits

Other benefits of Funding Circle include:

  • Fast approval
  • Transparent rates and fees
  • No prepayment penalties
  • Secured loans up to $500,000
  • Variable term lengths from six months to five years
  • Fixed interest rates

The Bad

  • High-Interest Rates and Fees
  • Some Negative Customer Reviews

High-Interest Rates and Fees

Funding Circle's simple interest rates typically range from 4.99 percent to 22.99 percent. Funding Circle charges origination fees from 3.49 percent to 6.99 percent. There is also a late fee charge that is five percent of your missed payment.

Some Negative Customer Reviews

While most reviews online are positive about the company, some consumers report difficulty reaching a customer service representative and receiving too many emails. Some consumers also report that the company was not transparent with them initially regarding rates and fees for their small business loans.

The Bottom Line

Funding Circle is an online peer-to-peer lending marketplace that offers secured loans up to $500,000 for small to medium-sized business owners. Small business owners applying for loans must have great credit to avoid high interest rates and the time to funding is longer than similar competitors. However, borrowers can choose loans directly from investors and negotiate term lengths and amounts.

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User Reviews

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14 Reviews

Review Breakdown

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Dustin & Stephanie Harrison

March 17th, 2020 Sturgis, SD DETAILS arrow_drop_down
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I am a small business owner. I started my business by putting all my personal items up for collateral. I needed to refinance so our Business had some credit and to pay off some high interest rate cards. I contacted Funding Circle 11/25/2018. Advised that I wanted $60000.00 to pay off that debt. They came back to me with an offer of a 5 yr loan at 27.04 interest. My payment would be $2058.31 and it would be automatically taken out monthly. I was also advised that after 6 months I would be able to refinance for a lower rate. They stated that they need to make sure I make my payments religiously to show creditworthiness. After putting all my numbers together and calculated all the interest I was currently paying, it was roughly 32% so I went along with the loan under the assumption that I could refinance for a lower interest rate in 6 months. I wanted to keep the payment the same but wanted to be about to pay it off sooner. In 6 months I called in and they said I was denied due to my credit score which was at a 650. I advised them that that was not part of the agreement. They said well that is our policy and I could try again in a month. I tried again in a month and they stated that since I just requested a refinance I had to wait another 6 months. So in November 2019 - 1 year of making insane payments and $1000+ going to interest of my 2058.00 payment I called in. They then stated that my debit to income ratio was off and if I wanted to refinance I would have to take out another $25000.00 loan. This was not part of our terms. They said sorry that the original rep misinformed me, in which I responded- I want the tape of our conversation going over the terms and they laughed at me and now as of March 16,2020 they refuse to take my phone calls. THIS COMPANY IS A FRAUD. THEY ARE NOT WANTING TO HELP SMALL BUSINESSES THEY WANT TO BLEED THEM DRY.

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Tom Ovidiu Moldovan

November 20th, 2019 Bailey, CO DETAILS arrow_drop_down
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They completely wasted my time. They don't really know what they are doing when evaluating credit, especially when it comes to new companies. You're better off dealing with a local bank or with American Express. One rep (Arian - I see not the first complaint) hang up on me, one other told me it will take them 6 (six) weeks to simply remove my company from their mailing lists. That tells you something as well. I hope their founders in Britain will order some training to help them learn how to use a delete button.

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Lynne Street

November 12th, 2019 DETAILS arrow_drop_down
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I have been trying to sell my loan parts with Funding Circle for over a year now. There is no transparency and when I write to them asking them what is happening they respond with vague emails which tell me nothing. To say I am frustrated is an extreme understatement. I would advise anyone looking to invest in P2P companies to give Funding Circle a very wide berth.

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Dave Perry

October 22nd, 2019 DETAILS arrow_drop_down
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If there was a zero I would enter this. We are up to date with payments, yet they keep calling requesting updates on our business. I was told by an accountant to report them to the FCA for harrassment . They dont care when they phone and interrupt business meetings stating the calls are urgent and must speak to the business owners. I cant wait to get shot of them. If you have a business plan sit down with your local bank and dont do what we did and take a loan with FC, because you will regret it. MP, Worcester UK

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sean

October 15th, 2019 Kansas City, MO

Worst company I have ever dealt with. Underwriting has no clue nor does management. If you have to deal with Branden M or Arian A RUN!! They have no clue what the other is doing and try to talk over you. HORRIBLE!! I own may small business and customer service is highest priority for mine. Funding Circle does not appreciate any customer

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Dave Lawton

October 4th, 2019

Funding Circle. This is a company who wants a non risk company. This is great in a perfect world. Anyone who has a great idea this can’t be for you . I’ve just raised £2.5 million from talking to many People about my project. This is done. Anyway funding Circle want guarantees from all roads. If you have a idea talk to other people, not FUNDING CIRCLE

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george

September 27th, 2019 Pittston, PA

In the future I suggest your Underwriters try to learn the type of business they are dealing with, before making assumptions as to the business financials. If this Underwriter (Alec) understood that a "Commission Based" business does not show the same finances as a Merchant Model maybe he would ask more relevant question then what he did. Also the sales person (Zac) showed signs of unprofessional business dealings when trying to overtalk what I was asking. And from only 1 star reviews from both the Venture people and Small Business on Best Company now I see my mistake in applying with this company. What a bunch of Clowns! 25 years in Business, Credit Score of 750! Thank You Reply Reply all Forward

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James W Robertson

April 15th, 2019 Cedar Park, TX DETAILS arrow_drop_down
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Represenative never responded when I had a question. Another team reached out and said they were totally inflexible and incapable to adjust to shifting financial conditions. Several lawyers and other funding groups warned me but I didn't listen. Funding Circle is like the MOB and they are proud of that distinction.

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Cranky Guy

March 11th, 2019 West Warwick, RI

THEY MAIL AND THEY EMAIL OFFERS CONTINUOUSLY . WHEN I FINALLY APPLY I'M DENIED. THEN WHY ARE YOU SENDING ME OFFERS???

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Mr JT

November 16th, 2018 Dacula, GA

The bottom line is, only attempt to do business with this company if you really DON'T NEED the money! Another website said one of their CONS was, "stringent borrower requirements". That is a gross understatement. I am a business owner that has been in business for more than 15 years and have ample cashflow for the loan I requested. Loan was "Declined". The Customer Service sucked as well as the communication. Will never attempt a Funding Circle loan again.

Funding Circle Logo

Reply from Funding Circle

Nov 20, 2018

Thanks for reaching out! We're sorry to hear you were disappointed with our process and customer service. We do require specific supporting documentation in order to most effectively underwrite the loan applications we receive. While we are always hopeful we'll be able to fully approve an offer, sometimes there are instances where this is not the case. We are always striving to provide an excellent customer experience and apologize this was not what you encountered. We would greatly appreciate any further details you would be able to provide in order for us to investigate. Please feel free to email us at . Sincerely, The Funding Circle Team

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biz01

February 16th, 2018 New York, NY

I will share the Past working experience with Funding Circle US as a referral Partner .( Most unprofessional company among all the lenders and investors I am dealing with )This is how their system works, they will pay out 3 Points as commission Everytime a deal is funded . ( You can not charge any fees and give them additional funds with any other Merchant cash advance companies )I have funded 1.35 Million on their platform as a referral partner, so among funded deals, those merchant can get additional funds after 6 months with good payments in the future , based on all current lenders and investors I am dealing with , they will pay out renewal commissions regardless if the merchant approaches them or they approach merchants when it comes to extra funding .Here is what happens , Without any upfront communication, Without any notice upfront ,Without any discussion regarding the existing funded deals commission, funding circle sent out an email claiming your account has been deactivated stating your recent deals in our portal are out of credit criteria .This action really shows they SERIOUSLY have Poor management which also have been mentioned multiple times from their current or former employees on glassdoor .so I emailed them back asking the existing funded deals renewal commission , instead of emailing me back official confirmation regarding this matter, Chris called me up, here is what he explained to me on the phone : we will not market your existing funded customers, however, if they come back themselves, you will not get paid . this is Purely STEALING your existing customers, this phone call is not even an official confirmation , just some reckless explanation from Chris , I am definitely surprised by the standard they are conducting business here in US ( funding circle was originally founded in UK and UK Market generates majority revenue ) also Funding Circle ‘basically halved’ US lending volumes at the start of the year 2016 , see below article :http://www.businessinsider.com/funding-circle-cut-us-lending-volumes-loan-underperformance-2016-9 Based on Chris’s explanation ,I do not really want to use this word, but they behavior show they are really Cheap in some level, with the 1.35 millions funded deals, just because of the renewal commission, they WON’T market to them to see if they are in need or qualified for extra funds ,this is how they Claim their mission is to Help small business ?And when chris say we won’t market to your existing funded deals, how should we TRUST you ? based on so many reviews online regarding funding circle, Funding circle keeps mailing or calling the business owners even they tell you NOT to ? If I know funding circle only pays out commission one time , I will not even refer you any business from the very beginning , because any other lenders and investors know how to conduct business MORE professionally with a very Clear and transparent system .

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Sam Norton

November 28th, 2017 Atlanta, GA

They required 6months of bank statements, pulled my credit, assured me I was qualified and it’s only going through underwriting. But they called and denied me and didn’t even jab the decency to give me a reason for the denial. DONT SHARE YOUR PERSONAL OR BUSINESS INFO WITH THIS COMPANY EVER!!!

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Byron Wolfe

April 18th, 2017 Clarksville, TN

Waste of time! They pulled my credit and dropped it 32 points after requesting a ton of my business as well as personal financials. I had an 810 credit score before and nine (9) years in business CLEARLY meeting the guidelines. They turned me down with this as an answer, " Unfortunately Powersports Dealership does not meet the current credit criteria required to allow us to extend a credit offer." and they KNEW my business was a power sports business WAY before I submitted countless documents and financials. AVOID this company.

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Proket0r

December 7th, 2016 Colton, CA

Today I receive a call at 9:17AM again from (302) 464-5356 AGAIN. It's a bogus call about "GETTING BUSINESS FUNDING NOW". Yesterday I pressed 9 to be removed. Today, I decided to speak with someone, HUGE MISTAKE -- I ask who they are and what they want. The sales rep continues on his 'Boiler Room Sales Script' asking if I need cash now, blah blah blah. I asked where they were calling from and he said Funding Circle in California. I was upset, I told him I was already removed and to remove me from this list as they have been bugging me or I'll file an FTC complaint, he said "Go ahead, file a complaint. You won't waste the time, do it. Go for it, just do it!" I asked to speak with his manager, he said that "His name is Sam and he is the OWNER, and just DO IT! GO FOR IT!" So, I decided to take his advice and that is what I did. Although, I did try to speak with somebody at the company first - It seems to just be a loop of voicemails. I google mapped the address and it does not look like a FINANCIAL SERVICES office, it looks more like an apartment building. I'm truly scared that somebody like this is out there selling financial services over the phone. I could only imagine the type of loan they are 'helping you' with. Today, because of SAM I will post reviews everywhere I can find - in effort to protect my fellow citizens against shady business dealings. Thank You.

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