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Funding Circle

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LAST UPDATED: April 11th, 2023
Funding Circle is an online, global peer-to-peer lending marketplace founded in 2010 in San Francisco, California. 
The company believes in providing a simple application process, fast decisions, and white-glove service to business owners around the world. It has assisted tens of thousands of businesses across the United States, the United Kingdom, Germany, and the Netherlands. Funding Circle has invested over $12 billion in small businesses since its founding. 
Funding Circle is faster than a bank, giving borrowers access to funds in as little as one business day after the offer is accepted. 
Borrowers must be able to provide both personal and business collateral and show proof of consistent income. Credit score is a factor in business owner eligibility, but even prospective borrowers with poor credit may be considered for certain loan types. Keep in mind that the stronger the credit score, the more favorable the loan term and interest rate. 
The main cause for concern regarding Funding Circle is a pattern of unresolved poor reviews. 

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The Good

  • Business Loan Variety 
  • Educational Resources
  • Overall Benefits

Business Loan Variety 

With one application, you gain access to multiple funding options across multiple lenders. All loan details are subject to approval based on your personal credit, revenue, time as an established business, and other factors. 

Small business loans from Funding Circle are typically used for inventory purchases, location expansion, debt consolidation, and payroll, but the sky is the limit depending on your loan type. 

Loan types include the following: 

SBA loan — SBA 7(a) loans come in amounts from $25,000 to $500,000 with terms up to 10 years. 

Term loan — Term loans range from $5,000 to $500,000 with term lengths from three months up to 10 years. 

Merchant cash advance (MCA) — You can get a cash advance from $5,000 to $400,000 with an anticipated duration of three to 18 months. 

Working capital — Working capital loans have term lengths between six and 18 months in amounts from $25,100 to $400,000 and a factor rate as low as 1.15. 

Line of credit — For the revolving line of credit, you can get an interest rate as low as 4.8% for credit lines from $6,000 to $250,000. 

Invoice factoring — You can receive 85-90% of the invoice amount upfront with a line up to $5 million with rates as low as 0.25% per week. 

Educational Resources

Funding Circle offers small business owners and prospective borrowers an online resource center on its corporate website that features detailed information about each loan type as well as FAQs for some loans. 

Borrowers can also speak with a loan specialist during normal business hours for more detailed information. Once approved, you are assigned a dedicated account manager for the duration of the loan. 

Overall Benefits

Overall benefits of Funding Circle include the following:

  • Fast approval (as soon as one day)
  • No prepayment penalties
  • Variable term lengths
  • Fixed interest rates
  • Loan use flexibility 

The Bad

  • Line of Credit Fees
  • Subject to Other Lender Conditions
  • Negative Funding Circle Reviews

Line of Credit Fees

If you finance a revolving line of credit through Funding Circle, be aware of the following fees: 

  • Maintenance fee to cover servicing and processing costs ($20 monthly payment
  • Draw fees for each time you tap into your line of credit (1.6% to 2.5%)
  • Late payment fee if you miss a payment after taking a draw (5% of the past-due amount

Subject to Other Lender Conditions

For some loans, Funding Circle partners with other lenders within a network to provide the full range of loan options to qualified borrowers. Therefore, the approval and funding times advertised on the company website may vary between lending partners.

On the positive side, a partner network offers flexibility: borrowers can choose loans directly from the lending partner and negotiate term lengths and monthly repayment amounts.

Negative Funding Circle Reviews 

Funding Circle has a significantly lower overall star review profile than our top-reviewed business loan companies. 

While some reviews online are positive about the company, most consumers are on our site have negative things to say and it does not appear that Funding Circle has resolved the issues brought up by past borrowers. 

Some concerns include communication with company representatives, high interest rates, and unforgiving loan terms. 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

Online lender Funding Circle has some promising features as a peer-to-peer lending marketplace. These include a variety loan types available, a partner network of lenders with which to qualify for a loan offer, and a convenient six-minute application to start the process. 

However, the relatively low customer review profile is cause for concern, so we do not recommend this lender. There are several higher-ranked companies that have been deemed more trustworthy for a small business loan by consumers. 

View Best Business Loan Lenders

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