Funding Circle business loans review
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.
- No minimum revenue requirements
- Accepts fair credit
- No prepayment penalties
- Strong reputation for customer service
- Relatively high origination fee
- High minimum loan amount compared competition
- Turnaround of at least five business days
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.
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.
Business loan calculator
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|Loan terms (in years)|
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.
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 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.
Frequently asked questions
Business loan ratings
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.