Funding Circle is a peer-to-peer service bringing together investors with businesses seeking investment.
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.
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Key features of Funding Circle business loan
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 six minutes.
- Loan duration. The duration of payment plans spans six months to five years.
- Security. Funding Circle offers secured and unsecured business loans. With secured loans, any of your assets may be used to repay the debt if you can’t make your payments. This could result in your home being repossessed.
- Fixed monthly repayments. Loans come with fixed monthly payments as standard. This means you will always know how much money is coming out of your account and will be able to plan and manage your finances as a result.
- Option to take a repayment holiday. You’ll need to ask Funding Circle whether it will give you this option.
- Quick decision. When you apply for a loan, you can expect to receive an answer within 24 hours.
- Repay your loan early at any time. Funding Circle charges no penalty fees for the early repayment of its loans.
- Quick access to funds. Once your loan has been granted, the funds will reach your account in a few days.
- Set-up fees. Funding Circle charges a set-up fee which differs depending on the repayment terms of the loan in question.
- Preferential rates for existing customers. Funding Circle isn’t a bank so this option doesn’t apply.
Am I eligible for a Funding Circle business loan?
If you are certain you can make your monthly payments, and that you meet the following criteria, then you should be eligible for a loan with Funding Circle.
- You have been trading as a business for at least two years and have not been dormant at any time.
- You are in business to make money. Public bodies, charitable organisations and trusts are not eligible unless Funding Circle has made an official exception in writing.
- Your firm is a sole trader, partnership, limited liability partnership or a limited company. It also must be registered at Companies House if it applies to your business.
- At least 50% of the people who run your business are permanent residents of the UK.
- Your business has a valid UK bank account.
- Your business’s premises are in the UK.
- Your company has a good and clean credit history.
- Neither you nor any of the your company’s directors, shareholders or members has had an individual voluntary arrangement at any time within the last six years.
- You are a legal resident of the UK.
- You are aged over 18 and also a director of your company.
- You have authority (signatory) over your company’s bank account.
- You haven’t been declared bankrupt in the last six years.
- You haven’t had any court judgements or decrees within the past three years.
- You haven’t been a disqualified director or a director of a failed business at any time within the last six years.
- You can provide all the information that Funding Circle requests of you.
- You have a good and clean credit history.
How can I apply?
It’s straightforward to apply for a Funding Circle loan online. Alternatively, you can get in touch with its support team for help or more information on 0800 048 2467.