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Funding Circle small business loans review

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Funding Circle business loans
4.4
★★★★★
Finder score
Min. Amount
$25,000
Max. Amount
$500,000
APR
as low as 7.49% interest rate

Our verdict

Established small businesses can take advantage of low rates and highly rated customer service.

Funding Circle has funded over $20.2 billion through its marketplace since it was founded in 2010. With over a decade of experience, it is one of the most trusted direct lending platforms for established small businesses.

According to its statistics, Funding Circle's average borrower has good to excellent personal credit, at least 11 years in business, over $1 million in annual sales and 12 employees. But this is the average — as long as you meet its minimum requirements, your business may still qualify for a loan.

In my experience, Funding Circle is a legitimate and trustworthy online lender. Its wide variety of loan options makes it perfect for finding the right type of funding. And, many loans only have a low revenue requirement, which could increase your chances of qualifying.

However, Funding Circle charges a relatively high origination fee compared to other online lenders.

Pros

  • No minimum annual revenue.
  • No prepayment penalties.
  • Faster than a bank.
  • Solid customer service.

Cons

  • Relatively high origination fee
  • Higher minimum loan amount compared to competition

In this guide

  • Our verdict
  • Details
    • Product details
  • Your reviews
  • Ask a question

Details

Product details

Min. Amount $25,000
Max. Amount $500,000
Loan term 6 months to 5 years
Min. Credit Score 620
APR as low as 7.49% interest rate
Requirements 620+ credit score, 2+ years in business, $50,000+ in annual revenue, no bankruptcies in the past 7 years

Funding Circle business loans

Your business may qualify for multiple types of loans depending on your personal credit score and small business revenue.

You can expect to pay an origination fee between 4.49% to 10.49%. And if you’re late repaying your loan, Funding Circle charges a late payment fee of 5% of the missed payment.

There are no prepayment penalties — so if you pay back your loan early, you could save on interest and other fees.

Funding Circle SBA loans

Funding Circle offers SBA loans through its network of lending partners, although it only offers 7(a) loans — which are term loans — now that the Paycheck Protection Program (PPP) has closed.

These government-backed small business loans are standard options for small businesses. But expect a longer turnaround time and more strenuous application criteria if you want some of the most competitive interest rates and terms out there. This includes meeting a minimum revenue requirement and having a good to excellent personal credit score.

SBA 7(a) loan rates, fees and terms

SBA 7(a) loans have standard terms of up to 10 years. Your small business may qualify for funding between $50,000 to $500,000, and your interest rate could be as low as the prime rate + 2.75% — currently 8.25% as of May 2023.

But there are also some fees and other costs you should be aware of:

  • SBA loan guarantee fee
  • Broker or agent fee
  • Loan closing costs

These can quickly add up, so be sure to discuss them with your loan agent as you prepare your application.

Funding Circle term loan

Term loans allow your small business to borrow a set amount and repay it in monthly installments. These are one of the most flexible options, and Funding Circle offers relatively competitive rates for an online lender. But like with SBA loans, you will need to have a decent credit score and solid revenue to qualify.

Term loan rates, fees and terms

Funding Circle offers small business loans between $25,000 to $500,000. Unlike many other lenders, it has extremely flexible terms: six months to seven years.

Interest rates start at 7.49% when you borrow a business loan through Funding Circle, but that number could be higher depending on personal factors including your credit score and other qualifying factors.

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Funding Circle business line credit

Unsecured lines of credit are similar to credit cards: You can borrow money as your business needs it. Funding Circle’s partners typically offer revolving lines, which allow you to continually borrow from your funds as you repay your line. This lets you skip multiple applications and spare both your time and hits to your credit score.

Keep in mind that the Funding Circle business line of credit gives you the option of weekly or monthly payments. You may also have unique repayment terms each time you make a draw.

Line of credit rates, fees and terms

In addition to interest, you may be charged these fees:

  • Draw fee: Average of 1.6%
  • Late fee: Average of 5% of the past-due amount

Your line of credit will be between $5,000 to $250,000. There are no set terms when you borrow, and you’ll only pay interest — and draw fees — when you borrow money against your line.

How Funding Circle compares to other lenders

Funding Circle offers a dedicated US-based Funding Specialist to walk you through the initial application process. It also offers a wide variety of products — something you won’t find with BlueVine and Fundbox. But its requirements make it difficult for newer businesses with less revenue to qualify. If you’re looking for fast funding, BlueVine and Fundbox are solid alternatives to Funding Circle.

BlueVine accepts businesses with as little as six months in business. While you won’t be able to borrow more than $250,000, its APR starts competitively low at 6.2%.

Fundbox also accepts businesses that have only been operating for 6 months. It offers lines of credit up to $150,000. Its terms are short for each draw, but the fixed fee makes it easy to plan for the cost, unlike most variable-rate lines of credit.

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Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
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$1,000
$5,000,000
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Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Fundible
Finder Score: 4.9 / 5: ★★★★★
Fundible
$1,000
$10,000,000
Rates start at 1% per month
500+ FICO score, $200,000 annual revenue, 6 months in business, most recent business bank statements
Same day approval
Nav business loans
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$500
$5,000,000
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BusinessLoans.com
Finder Score: 4.4 / 5: ★★★★★
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$5,000
$3,000,000
Varies by loan type and lender
Must have been in business between 1 to 2 years, have a minimum revenue of $75,000 to $250,000 and have a minimum credit score of 500 to 650.
Complete a three-minute form to see loans that fit your business’s needs. Compare offers without a hard credit check.
Fundera business loans
Finder Score: 4.9 / 5: ★★★★★
Fundera business loans
$2,500
$5,000,000
Varies based on lenders
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.
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Funding Circle reviews and complaints

BBB accredited Yes
BBB rating A+
BBB customer reviews 1.07 out of 5 stars, based on 12 customer reviews
BBB customer complaints 54 customer complaints
Trustpilot Score 4.6 out of 5 stars, based on 10,672 customer reviews
Customer reviews verified as of 02 June 2023

Funding Circle generally gets positive customer reviews. Many borrowers state they’re happy with the fast and simple application process and helpful customer service representatives. Most negative reviews are centered around unsolicited emails and mail as well as issues surrounding PPP loans.

How to qualify

The exact requirements you and your business need to meet depend on the type of loan. However, there are a few basics you’ll need to cover before you apply for a small business term loan through Funding Circle.

  • At least two years in business
  • Personal credit score of 620 or higher
  • No personal bankruptcies among business owners in the past seven years
  • For-profit business in an approved industry
  • Annual revenue of $50,000+

During the application process, you may be asked to provide business and personal tax returns as well as six months of recent bank statements.

Ineligible industries

Funding Circle does not accept applications from businesses in these industries:

  • Speculative real estate
  • Nonprofits
  • Weapons manufacturing
  • Gambling
  • Cannabis dispensaries
  • Adult entertainment

How the application works

You can apply for a Funding Circle loan by filling out a short online application. After you submit the form, and upload any required documents, a Funding Circle loan specialist contacts you to finalize the application process.

After Funding Circle reviews your application, they generally get back to you with a final decision in as little as 24 hours. If you’re approved, your funds are disbursed in as little as two business days. The exact terms will depend on your business finances, credit score and overall creditworthiness.

A Funding Circle loan monthly payments, which can be set up to withdraw automatically from your bank account on the payment due date.

What sets it apart

Funding Circle’s forgiving requirements and low interest rates make it a competitive alternative to a bank loan. It’s also one of a handful of platforms to offer investor-funded business loans — and one of the only to provide government-backed financing.

Is Funding Circle legitimate?

Yes, Funding Circle is a legitimate lender. It’s been vetted and approved by the SBA to offer 7(a) loans through its network of lending partners. And while it isn’t a bank, it is a trusted source that helps small businesses get the funding they need.

It protects the information you enter on its website with SSL security to keep your personal and business information safe from hackers. Funding Circle also complies with security regulatory requirements including PCI-DSS and uses security technologies like firewalls and scanning to protect its systems and data from attackers and malicious software. However, its privacy policy also states it’s not liable for any stolen personal information.

Business loan ratings

★★★★★ Excellent
★★★★★ Good
★★★★★ Average
★★★★★ Subpar
★★★★★ Poor
We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews. Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.

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