Funding Circle business loans review

Finder experts pick Funding Circle business loans as a 2020 best pick for business loans.

How much will this loan cost me?

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 the calculator below to find out how much this loan might cost each month and in total interest at different rates and terms.

How it works

While you can qualify for this loan with a 620 credit score, you’ll need to be a well established business with strong revenue and personal credit to qualify for a 4.99% APR. Just meeting the minimum requirements usually isn’t enough to get a good deal. You’ll also need to show your business has enough consistent cash flow to afford the monthly payments on your loan, even if there’s no minimum revenue cutoff.

What do I need to qualify?

You’re eligible to apply for a business loan with Funding Circle if you meet the following criteria:

What information do I need to apply?

Funding Circle asks all applicants to provide:

• Business tax returns for the past two years. If you don’t have them on hand, request copies from the IRS.
• Personal tax returns for the past year. Required for everyone who owns at least 20% of your business.
• Business bank statements for the past six months. You’ll need official copies from your bank — not home printouts.
• Signed guarantor form. Required for everyone who owns at least 20% of your business.

What industries does Funding Circle work with?

Funding Circle works with businesses in most industries, except for the following:

What other types of financing does Funding Circle offer?

Funding Circle isn’t offering its standard business loans during the coronavirus outbreak. It offered PPP loans until the program closed on June 30, 2020. And currently it’s still only offering SBA 7(a) loans. Here’s how they work through Funding Circle.

SBA 7(a) loans

• Loan amounts: $20,000 to $5 million
• Rates: 6%
• Fees: SBA guarantee fee of 1.7% for loans up to $150,000 and 2.25% for loans over that amount. Broker and closing fees may also apply.
• Terms: 10 years
• Requirements: Over 3 years in business, at least a 680 credit score, at least $400,000 in annual revenue, no federal tax lines, more business assets than liabilities, meet SBA size standards for your industry

This government-backed loan program offers more flexibility to established businesses with loan amounts based on your business’s ability to repay. You can use the funds for any business purpose, from working capital to growing your business.

Pros and cons

Here are the benefits of choosing Funding Circle as your lender — and drawbacks that might make you want to look elsewhere.

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Name	Product	Filter Values	Loan amount	APR	Requirements
First Down Funding business loans			$5,000 – $300,000	Fee Based	At least 1 year in business, an annual revenue of $100,000+, and a minimum credit score of 400	Alternative financing up to $300K with highly competitive rates.	Check eligibility More Info		loading Fetching your data…
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.	Check eligibility More Info		loading Fetching your data…
ROK Financial business loans			$10,000 – $5,000,000	Varies	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.	Check eligibility More Info		loading Fetching your data…
OnDeck small business loans			$5,000 – $250,000	As low as 9.99%	600+ personal credit score, 1 year in business, $100,000+ annual revenue	A leading online business lender offering flexible financing at competitive fixed rates.	Check eligibility More Info		loading Fetching your data…
Rapid Finance small business loans			$5,000 – $1,000,000	Fee based	Steady flow of credit card sales, bad credit OK	Check eligibility More Info		loading Fetching your data…
Fundbox business loans			$1,000 – $100,000	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.	Check eligibility More Info		loading Fetching your data…
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.	Check eligibility More Info		loading Fetching your data…
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.	Check eligibility More Info		loading Fetching your data…
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.	Check eligibility More Info		loading Fetching your data…

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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.

Funding Circle reviews and complaints

Funding Circle generally gets positive customer reviews. Many borrowers were happy with the fast and simple application process and helpful customer service representatives. Most negative reviews are from investors who had 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 do I apply?

Before you apply, make sure you meet Funding Circle’s eligibility requirements. If you do, you can begin the application process online by following these steps:

1. Click the Go to site button on this page to be redirected to Funding Circle’s website.
2. Click Apply now.
3. Enter your loan amount, loan term and the type of business you run. Click Continue.
4. Follow the directions to complete your application, carefully reading the terms and conditions before submitting it. This process should take about 10 minutes.

What happens after I apply?

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.

How do repayments work with Funding Circle?

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.

Since Funding Circle doesn’t charge any prepayment penalties, you can save on interest by making extra repayments or paying back your entire loan early. If you have any questions, reach out to a representative as soon as possible.

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