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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.

Funding Circle is a lending marketplace matching lenders and investors to businesses that have been around for at least two years. While it doesn’t have any hard revenue requirements, it’s not open to startups.


Min. Amount


Max. Amount


Product NameFunding Circle Business Loans
Min. Amount$25,000
Max. Amount$500,000
Loan Term6 months to 5 years
Requirements620+ personal credit score, 2+ years in business, for-profit business in an approved industry
Go to Funding Circle's website

First, do I qualify?

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

  • 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

You won’t be eligible if your business is in one of Funding Circle’s restricted industries.

What makes Funding Circle business loans unique?

As a peer-to-peer (P2P) business lender, Funding Circle doesn’t have as strict eligibility requirements as traditional banks — you only need to have fair credit to qualify, and it doesn’t have a minimum revenue requirement. It also offers a more streamlined application process that should take just 10 minutes to complete, as well as a responsive customer service team.

What is Funding Circle?

Funding Circle is a P2P lender that connects small businesses with investors in its network. It offers fixed-term business loans between $25,000 and $500,000 you can use to cover most business-related expenses, like paying for new staff or expanding your business in general.

You have your choice of repayment terms that start at 6 months and go up to 5 years, giving your business the flexibility it needs to pay back the loan at its own pace. Funding Circle charges fixed rates between 4.99% and 22.99% depending on your loan term, as well as a one-time origination fee between 3.49% and 6.99%.

You can apply online in just minutes and hear back about approval in as little as 24 hours. If accepted, you may be able to get your funds in as fast as one business day.

What are the benefits of getting a Funding Circle business loan?

There are a few perks of borrowing with Funding Circle, including:

  • No minimum annual revenue. Your business doesn’t have to make a lot of money to qualify for a loan.
  • Flexible repayment terms. Choose to pay back your loan in as little as six months or as long as five years depending on your business’s needs.
  • No prepayment penalties. Save on unnecessary interest by paying off your loan sooner without getting slapped with a fee.
  • Solid customer service. Funding Circle’s main customer reviews praise its customer service, which is friendly, approachable and easy to deal with. Its website isn’t bad either.

What to watch out for

Consider these potential drawbacks before taking out a business loan from Funding Circle:

  • High loan minimum. You’re out of luck if you’re looking to borrow less than $25,000.
  • Not an option for startups. Your business must be up and running for at least two years to qualify.
  • Potentially high origination fee. You may be charged up to 6.99% of the amount you borrow that’s deducted from your loan before your receive the funds.

Compare more business loan providers

Updated January 23rd, 2020
Name Product Filter Values Min. Amount Max. Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Customizable loans with no origination fee for business owners in a hurry.
National Business Capital Business Loans
Your company must have been in business for at least 6 months and have an annual revenue of at least $100,000.
Get a large business loan to cover your financing needs, no matter what the purpose is.
OnDeck Small Business Loans
600+ personal credit score, 1+ years in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
First Union Lending Unsecured Long-Term Business Loan
450+ credit score, 3+ months in business, $15,000+ monthly revenue, no open bankruptcies
Unsecured funding and more for all credit types.
Sheer Funding Business Loans
6+ months in business, 550+ credit score, $150,000+ annual revenue, eligible industry
Multiple financing options available for business owners with less-than-perfect credit scores.
Efundex long-term business loans
2+ years in business, 620+ credit score, not a sole proprietorship or nonprofit, strong financial history
Financing for high-risk industries with transparent rates and terms.
Kabbage Small Business Line of Credit
1+ years in business, $50,000+ annual revenue or $4,200+ monthly revenue over last 3 months
A simple, convenient online application could securely get the funds you need to grow your business.
LendingTree Business Loans
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Varies by lender, but many require good personal credit, minimum annual revenue and minimum time in business
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Lendio Business Loan Marketplace
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.

Compare up to 4 providers

What do borrowers say about Funding Circle business loans?

Mostly good things as of October 2019. It’s been accredited with the Better Business Bureau (BBB) since 2013 and earns an A+ rating. While it only has 29 reviews on the BBB, over 5,900 customers have left feedback on Trustpilot. It earns an average TrustScore of 4.1 out of 5 — with 82% of customers rating it “Excellent.”

Many borrowers were happy with the fast and simple application process and helpful customer service representatives. Most negative reviews were from investors who had difficulty withdrawing their money from Funding Circle or lost profits due to loan defaults.

Is it safe to use Funding Circle?

Funding Circle’s website is secure, but it doesn’t look like they take extra precautions with applications. Its privacy policy also states it’s not liable for any stolen personal information — a potential red flag.

Industries that don’t qualify for Funding Circle loans

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

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.
    Funding Circle apply image step one
  4. Follow the directions to complete your application, carefully reading the terms and conditions before submitting it. This process should take about 10 minutes.

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.

Go to Funding Circle's site

What documents 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 that 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 that owns at least 20% of your business.

I got a Funding Circle business loan. Now what?

You’re now on the hook for monthly repayments through automatic withdrawals from your bank account or a debit or credit card. If you can, consider setting up autopay to avoid late fees and penalties. If you are late on a payment, you’ll be charged 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. Have any questions? Reach out to a Funding Circle representative by calling 855-385-5356 or emailing loanquestions@fundingcircle.com.

Bottom line

Small businesses that have been around for a while stand to get the most out of a Funding Circle business loan. While it’s not open to startups, it makes up for it with its lenient revenue requirements and solid customer service.

Still, it’s not for everyone. Be sure to compare other business lenders to ensure you’re making an informed decision. Or learn more about P2P lenders with our guide.

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