Funding Circle Review

Pros

• High borrowing amounts
• Monthly repayments
• No prepayment penalty
• Few additional fees
• Customer service is helpful

Cons

• Borrower qualifications might be hard to meet
• Financing isn’t available in some states
• Not available to businesses in some industries

What Is Funding Circle?

Funding Circle offers installment loans (commonly referred to as term loans) to established businesses.

Services Offered By Funding Circle

This review focuses specifically on the US branch of Funding Circle.

Funding Circle offers installment loans. Also called “term loans,” installment loans deliver a lump sum of cash upfront in exchange for a promise to repay the amount borrowed plus accumulated interest or a flat fee. The loan is repaid in regular, equal installments.

Funding Circle now also offers lines of credit (versus a term loan/installment loan). Rather than granting a lump sum, a line of credit provides a credit limit that can be drawn upon as needed. Interest is only charged on the amount used. In the case of revolving lines of credit, as you pay off your balance, your credit becomes available to use again for the life of the line of credit.

Funding Circle is also an approved SBA 7(a) loan lender. Read our guide to SBA 7(a) loan guide to terms and eligibility to understand more.

Funding Circle Borrower Requirements

These are the qualifications you must meet to qualify for a Funding Circle loan:

Also, you cannot have had any bankruptcies over the last seven years or any tax liens in the last ten years. There is no specific requirement for how much revenue a business must make every year to qualify for a Funding Circle loan.

Funding Circle does not offer loans to businesses based in Nevada, citing the state’s lending regulations. Funding Circle also enforces a prohibited industry list, which includes:

• Speculative real estate
• Nonprofit organizations
• Weapons manufacturers
• Gambling businesses
• Marijuana dispensaries
• Pornography

You can use Funding Circle’s loans for a variety of purposes. The one restriction the company specifies is that the loan cannot be used to settle personal debt.

Funding Circle Interest Rates & Fees

Business Term Loans

These are the terms and fees for Funding Circle’s business term loans:

Funding Circle offers installment loans with term lengths between six months and seven years. Your interest rate is determined by your creditworthiness, the strength of your business, and other factors, such as your business type, how long you’ve been in business, and your real-time cash flow. Your interest rate is also affected by the loan’s term length. It is, however, a fixed interest rate, so once it’s set, that will be your interest rate for the life of the loan.

Because Funding Circle offers installment loans, you can save money on interest costs by paying off your loan early. There are no prepayment penalties. Payments are made monthly and begin the day you accept the loan (not the day you receive the funds). You can use the information on Funding Circle’s support page and our loan calculator to get an idea of how much your monthly payments might be.

Apart from an origination fee and interest, the only other fees you might be charged are for insufficient funds or late payments. This fee is equal to 5% of the missed payment.

Business Line Of Credit

These are the terms and fees for Funding Circle’s business lines of credit:

Businesses looking for more flexibility can apply for a line of credit through Funding Circle.

Funding Circle’s lines of credit do not have any monthly maintenance fee, but each draw will incur an average fee of around 1.6% of the amount drawn. Interest is only due on the amount of credit you’re currently using. As with Funding Circle’s installment loans, late payments are charged a fee equal to 5% of the missed payment.

Application Process

To apply for a Funding Circle loan, you will first have to complete an initial application online to see if you’re “pre-qualified” for a loan (meaning, “see if your business meets Funding Circle’s minimum qualifications for funding”). Funding Circle does a soft check of your personal credit for the initial application.

Once pre-approved, you’ll be given a quote with an estimated interest rate. A Funding Circle representative will call to discuss your quoted loan options and assist you with any questions. Next, you’ll need to provide additional documentation and information about your business. If your business is organized as a general partnership, Funding Circle will do a hard credit check at this point, which may affect your credit score. However, a hard check is not required for most applicants.

According to Funding Circle, you’ll need the following documents:

• Two years (most recent) of business tax returns
• One year (most recent) of personal tax return
• Six months (most recent) bank statements
• Business debt information

Once you’ve had your consultation and submitted all the appropriate documents, your application will go through underwriting. Within a day, Funding Circle will send you an offer, including your interest rate and origination fee. You’ll receive your funds within a few days if you accept the offer. According to Funding Circle, the entire application process usually takes five days or less.

Sales & Advertising Transparency

Funding Circle has a well-designed website and is upfront with information about its lending services. You can learn pretty much everything you need to know on the Funding Circle website, with handy tools, such as calculators and borrowing guides.

The company is also a signatory of the Borrower’s Bill of Rights, in which companies promise to be fair and transparent about lending practices. While there’s wide variation in borrowing rates, you should have a pretty good idea of what you’re walking into.

Customer Service & Technical Support

According to customer reviews, borrowers tend to be happy with the level of support they receive from Funding Circle.

Funding Circle Reviews, Complaints, & Testimonials

Negative Reviews & Complaints

Funding Circle USA, Inc. currently has 15 reviews and 12 complaints closed within the last 12 months with the Better Business Bureau (BBB). Many of the recent complaints are about the PPP loan forgiveness process.

• High-Interest Rates: You might pay more for Funding Circle’s services than you would for a bank loan.
• Long Application Process: Compared to other alternative lenders, Funding Circle’s application process is slower.
• Discrepancies Between Sales & Offers: A few customers reported that the rates they were offered and the rates they received didn’t match up.
• Not For New Businesses: You need to have been in business for two years to qualify for funding from Funding Circle.

It’s also worth noting that Funding Circle regularly responds to customer complaints and works hard to correct problems.

Positive Reviews & Testimonials

Funding Circle receives high praise across the board from the majority of reviewers. The company is BBB accredited and gets an A+ rating. Funding Circle currently receives 4.6 out of five TrustScore. Here’s what users love most about this service:

• Easy Application Process: Borrowers found the application straightforward and easy to complete.
• Good Customer Service: By far, this is the most common point of praise. Borrowers appreciate how friendly the representatives are and seem satisfied with the level of support given by their specific account managers.
• Quick Funds: Many borrowers like how quickly they were able to apply and receive funds, especially compared to the time it would have taken to apply for a bank loan.

Final Verdict

Funding Circle’s competitive interest rates and easy application process can be worth looking into for established businesses with a strong credit history.

The main issue with Funding Circle is that its borrower qualifications put it in close contention with bank loans. Funding Circle can still generally offer a faster (although slower than many other alternative lenders) and easier application process than a bank can, although you’re more likely to get a better rate from the latter. The decisive factor will likely be time constraints.

As always, we recommend considering all your options before accepting even the best small business loans to ensure you’re getting a great deal. If you’re interested in other options, check out some of our favorite small business lenders with our comparison chart.

The Merchant Maverick Seal of Approval 🏆

Funding Circle	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Funding Circle for yourself.

The Merchant Maverick Seal of Approval 🏆

Funding Circle	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Funding Circle for yourself.