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 with more than $2 billion in small business loans. The company offers small business loans up to $500,000 with fast approval times and funding within ten days. The main complaints from customers involve too many emails received by the company.
Typical Funding Circle Borrowers
Typical borrowers through Funding Circle have been in business for at least three years and have good to excellent credit histories. 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.
Small business loans from Funding Circle are typically used for inventory purchases, location expansion, debt refinancing, and payroll.
- Two Years in Business
- Personal and Business Collateral Required
- Transparent requirements
- Resource center
Pros of Funding Circle Small Business Loans
- Fast Approval
- Transparent Rates and Fees
- No Prepayment Penalties
- Secured Loans Up To $500,000
- Variable Term Lengths From One to Five Years
- Fixed Interest Rates
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.
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 a 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.
- High interest rates and fees
- Time to funding
- Negative customer reviews
High Interest Rates and Fees
Interest rates typically range from 5.49 to 27.8 percent, although in some cases rates may be even higher. Funding Circle charges origination fees of 3.99 percent. There is also a ten percent late fee charge on missed monthly payments. Funding Circle also charges a $35 non-sufficient funds fee when applicable.
Time to Funding
Funding Circle takes up to ten days to transfer funds and complete the application process. Many similar competitors are able to approval applications immediately and transfer funds in one to three days for most loans.
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.