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Funding Circle business loans review

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You only need fair credit to qualify, but it's not open to startups.

Bottom line: This peer-to-peer lender accepts fair credit with starting rates you might find at a bank. But its high minimum loan amount makes it a better choice for large expenses.

$25,000

Min. Amount

$500,000

Max. Amount

Details

Product NameFunding Circle business loans
Min. Amount$25,000
Max. Amount$500,000
Loan Term6 to 60 months
Min. Credit Score620
APRStarting at 4.99%
Requirements620+ personal credit score, 2+ years in business, for-profit business in an approved industry
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Pros

  • No minimum revenue requirements
  • Accepts fair credit
  • No prepayment penalties
  • Strong reputation for customer service

Cons

  • Relatively high origination fee
  • High minimum loan amount compared competition
  • Turnaround of at least five business days

Expert review

Anna Serio

Review by


Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.

Expert review

Funding Circle is a peer-to-peer lender that offers competitive rates and has a reputation for strong customer service. It’s available to business owners with fair credit and doesn’t have any revenue requirements.

But its high starting amount and two-year business history requirement could make it a better option for more established businesses. It also charges a relatively high origination fee compared to other online lenders.

Paycheck Protection Program loans

Funding Circle will offer both First Draw and Second Draw PPP (Paycheck Protection Program) loans. The PPP is set to open to all lenders on January 19, 2021. Until then you can sign up for updates on Funding Circle's website.

Funding Circle rates, fees and terms

Funding Circle offers loans from $25,000 and $500,000 with rates starting at 4.99%. The rate includes an origination fee between 3.49% to 6.99%, which it deducts from your loan before you receive your funds.

You have between 6 months and 5 years to repay the loan. Use our calculator to find out how much this loan might cost each month and in total interest at different rates and terms.

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How Funding Circle compares to other lenders

Select the ranges that apply to your business to see how Funding Circle stacks up to the competition.

Data indicated here is updated regularly
Name Product Filter Values Loan amount APR Requirements
Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
Fora Financial business loans
$5,000 – $500,000
Varies
1+ year in business, $250,000+ annual revenue, no open bankruptcies
Get qualified for funding in minutes for up to $500,000 without affecting your credit score. Great for SBA loan applicants.
First Down Funding business loans
$5,000 – $300,000
Fee Based
At least 2 years in business, an annual revenue of $300,000+, and a minimum credit score of 400
Alternative financing up to $300K with highly competitive rates.
ROK Financial business loans
$10,000 – $5,000,000
Starting at 6%
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
OnDeck small business loans
$5,000 – $250,000
As low as 11.89%
600+ personal credit score, 1 year in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
Rapid Finance small business loans
$5,000 – $1,000,000
Fee based
Steady flow of credit card sales, bad credit OK
Fundbox business loans
$1,000 – $150,000
4.99%
You must have an established business.
Get flat rate, short-term financing based on the financial health of your business, not your credit score.
Kickpay e-commerce business loans
$20,000 – $1,000,000
Not applicable
At least $250,000 in the past 12 months of revenue, e-commerce business, use a 3rd party fulfillment center for storing and shipping inventory, at least one US location.
Get a loan for your e-commerce business based on your sales history.
LendingClub business loans
$5,000 – $500,000
12.15% to 29.97%
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
With loan terms that vary from 12 to 60 months, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
Monevo business loans
$500 – $100,000
3.99% to 35.99%
Credit score of 500+, legal US resident and ages 18+.
Use this connection service to get paired with a loan you can use for business.
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How to qualify

You need to meet the following criteria to qualify for a FundingCircle business loan:

  • Personal credit score of at least 620
  • Business is at least two years old
  • No personal bankruptcies among business owners in the past seven years
  • For-profit business in an approved industry
  • Not located in Nevada

Funding Circle reviews and complaints

BBB accredited Yes
BBB rating A+
BBB customer reviews 4.02 out of 5 stars, based on 42 customer reviews
BBB customer complaints 15 customer complaints
Trustpilot Score 4.4 out of 5 stars, based on 8,748 customer reviews
Customer reviews verified as of 15 October 2020

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 from investors who report having difficulty withdrawing their money from Funding Circle or lost profits due to loan defaults.

However, you may notice some of the reviews on its Trustpilot page are from British borrowers — which likely won't indicate the quality of its American team.

How the application works

You can apply for a Funding Circle loan by filling out a short online application. After you submit the form, a Funding Circle loan specialist will contact you within the hour to collect any required documents.

Once you’ve submitted your documents, an underwriter reviews your application and gets back to you with a final decision in 24 hours. If you’re accepted, your funds are disbursed in as little as five business days.

Funding Circle loans come with monthly repayments, which it automatically withdraws from your bank account or a debit or credit card. If you’re late on a payment, it charges a fee of 5% of the missed payment amount.

What sets it apart

Funding Circle's low requirements and low rates make it a competitive alternative to a bank loan. It's also one of a handful of platforms that offers investor-funded business loans — and one of the only to provide government-backed financing. But because it's a peer-to-peer lender, it might not be as fast as other online lenders that fund loans directly.

Is Funding Circle legit?

Yes, Funding Circle is a legitimate lender. It’s been vetted and approved by the SBA to offer 7(a) loans — and was one of the first online lenders to get approval.

It protects the information you enter on its website with SSL security to keep it safe from hackers. But it doesn’t seem to offer any additional protection. Its privacy policy also states it’s not liable for any stolen personal information — a potential red flag.

Find out how Funding Circle compares to other lenders by reading our guide to business loans. Or, see how it stacks up to other peer-to-peer options.

Frequently asked questions

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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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