Funding Circle fast, affordable finance to help your business
- Unsecured loans up to £250,000
- Rates from 1.9% per year
- Get a decision in as little as 5 hours
- No fees for full early repayment
Funding Circle was founded to create opportunities for both investors and businesses. It helps businesses find funding and helps investors find new businesses to invest in. It was founded in 2010 and has over 50,000 registered members, including local councils, universities and the British government. It raised $150 million (around £116 million) in new venture funding in six April 2015, which brought the business’s value to $1 billion (around £0.8 billion).
If your business is in need of some financial assistance, Funding Circle may be a good option to consider. Through its online marketplace, investors can offer funding directly to small companies to help with growth. The amount of money offered was originally determined via auction. However, since September 2015, Funding Circle has decided the criteria for payment will be the risk category of the businesses in particular, as well as the loan term.
The company’s business loans provide quick cash to help your business grow, with manageable finance plans. You can receive funding for a very large unsecured loan with fixed monthly payments. On average, Funding Circle approves a loan every five minutes.
|Loan type||Fixed rate unsecured peer-to-peer loan|
|Loan amounts||£10,000 to £250,000|
|Loan terms||6 months to 5 years|
|Loan rate type||Fixed|
|Funding speed||Once your loan has been granted, Funding Circle states that the funds will reach your account in a few days.|
|Personal guarantee||A personal guarantee is required|
|Multiple loans allowed at the same time|
|Early repayment fee|
If you need to borrow more, Funding Circle also offers secured loans of up to £1 million. Funding Circle states that typically you can secure your loan against all assets of the business incl. property and large assets. Personal guarantee may also be required.
If you’re certain you can meet your monthly payments, and you meet the following criteria, then you should be eligible for a loan with Funding Circle.
From start to finish, the process can take as little as three days.
Realistically, peer to peer loans can take a little longer to fund, but Funding Circle’s huge popularity means that it has a large pool of investors to fund loans. Factors that can affect the turnaround time include:
Funding Circle is regulated by the Financial Conduct Authority (registration number 722513) and as such is obligated to have a back-up servicing arrangement in place in case of a company ceasing to trade. Funding Circle is also a member of CIFAS – the UK’s leading fraud prevention service. However, Funding Circle is not covered by the Financial Services Compensation Scheme.
It’s a third party service that business lenders can use, with your permission, to gain read-only visibility of your accounts. If you’ve heard of “open banking” (which lets you grant authorised third parties access to your bank account’s transaction history), this is like “open accounting”. Lenders use this primarily to help make lending decisions.
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