Review of the funding group 2022 | Nav

  • Funding Circle is known for providing fast, affordable, fixed-rate loans to companies with an established history.
  • For small businesses looking to avoid the slow and inconvenient aspects of traditional bank lending, Funding Circle offers an attractive alternative.
  • Funding Circle loans can also be a good alternative to the US Small Business Administration (SBA) 7(a) loan due to higher maximum loan amounts, faster funding times, and a shorter, less complicated application process.

What is Funding Circle?

Funding Circle is an online lending platform that offers small business loans via peer-to-peer lending, connecting investors with small businesses in the US, UK, Netherlands and Germany. They are the largest online small business loan provider and have specialized in small business loans since 2010.

As an online lender, Funding Circle has no physical locations or bank branches and does not offer other financial services such as checking accounts. But like other online lenders, they typically offer quicker approvals, quicker funding, and less rigorous application processes.

With a full online application, small business owners can quickly see their loan options and potentially get funding in as little as two business days after approval. When it comes to small business funding, Funding Circle has a lot to offer qualified small businesses.

Funding Circle Competitor

There are many lenders – both online and otherwise – that focus on lending to small businesses. Some of Funding Circle’s main competitors in the US are:

  • cabbage
  • BlueVine
  • On Deck
  • Lendio
  • Fundera
  • Lending Club
  • LendingCrowd
  • SoFi

Outside the US, Funding Circle also competes with lenders such as iwoca, Zopa, and Assetz Capital.

Who is Funding Circle best for?

Although they focus on small businesses, Funding Circle isn’t good for startups or business owners whose credit history is unproven. Learning how to create and upgrade business credit is a good idea if you want to improve your credit offerings.

Funding Circle is best suited for established businesses with at least two years of business history and a personal credit FICO score of at least 720 or higher for majority owners. They do not make loans to Nevada businesses or to individuals engaged in the following industries:

  • firearms or gun manufacturers
  • gambling businesses
  • Cannabis or marijuana dispensaries or developers
  • Non-Profit Organizations
  • speculative real estate

What does Funding Circle offer?

Funding Circle offers business loans with long repayment terms and low monthly payments. They are known for having a free, easy application process that doesn’t affect your credit score. They also offer a faster application process and funding time, especially when compared to traditional banks or SBA loans. Compared to short-term lenders, they offer lower interest rates, mostly in the single digits. Funding Circle also waives prepayment penalties, so you can pay off your loan early without a fee.

Once you complete your application, the lender assigns you an account manager who will guide you through the application process, approval, and funding.

You can use your funds for almost any business expense, including equipment purchases, inventory purchases, expanding an existing location or purchasing real estate for a new location, or hiring and maintaining staff.

Financing Circle Calculator

Wondering what your monthly payment would look like with a Funding Circle loan? You can determine this based on your loan amount, the interest rate and the repayment terms.

Nav has created a loan calculator to help you determine how much you will pay over time. Listen:

Funding Circle Rates and Fees

loan: Medium-term loan from Funding Circle

rate: 10.46% -24.30% APR

incorporation fee: 1.99% – 5.99%.

Loan Conditions: Monthly up to 84 months

funding amount: $25,000 – $500,000

speed: 3 days.

How to qualify for Funding Circle business loans

Funding Circle business loan eligibility includes:

  • 720+ FICO credit rating for majority owners
  • At least two years in business
  • No bankruptcy filing in the last seven years
  • Personal tax returns for each guarantor with a 20% or more interest in the company
  • Personal guarantee of at least 60% of company property

How to apply for business loans from Funding Circle

Funding Circle’s loan application is completely online. Borrowers can complete the application in just six minutes and receive their approval notification within 24 hours.

To apply for a Funding Circle business loan, make sure you have the following documents:

  • Two current trade tax returns
  • Two final personal tax returns (for all guarantors)
  • Six months current bank statements from main bank account
  • A surety form for each additional owner who owns more than 20% of the shares in the company (at least 50.1% of ownership must be signed)

Then visit the Funding Circle website and apply by providing the following:

  • The amount of credit you think you will need
  • The desired term of your loan
  • Your legal company name
  • First and last name of the majority entrepreneur
  • Your email
  • business phone number
  • mobile number

You can also choose to have Funding Circle offer you loans from its partners.

Customer reviews on Funding Circle

Based on Funding Circle reviews, the lender enjoys a good reputation among its customers. They are rated A+ by the Better Business Bureau (BBB) ​​and have a 4.6-star rating from Trustpilot.

These reviews are correct at the time of publication. Please check with each resource directly for the most up-to-date ratings.

Funding Circle Frequently Asked Questions (FAQs).

How is Funding Circle different from a bank?

Funding Circle is an online lender that uses peer-to-peer lending to lend to small businesses. This means they help accredited, institutional investors find ways to invest in small companies. They also move faster than most traditional banks, working to get your small business financing as quickly as possible.

How do I apply for a loan from Funding Circle?

To apply for a loan from Funding Circle, gather the documents listed above and visit their website. You’ll need to know how much you’re borrowing and how long you’d like to pay it back, along with contact information and a little bit about your business. Once you submit your application, you will be assigned an account manager who will help you submit the required documentation and guide you through the process.

What are the benefits of borrowing money from Funding Circle?

The main benefit of working with Funding Circle is efficiency and speed. The underwriting process is completed using technology and approval decisions are made in just one business day. Since they report your loans to the major credit reporting agencies, your payments can also help you build business credit.

Where is Funding Circle located?

Funding Circle has two US offices in San Francisco and Denver.

Nav’s last word: Funding Circle

If you’re a small business owner with relatively good credit, an established business, and high annual income looking for an easy application process, quick approval times, and fast financing to quickly improve your working capital or cash flow, Funding Circle may be for you choice for you.

Nav can help you compare lenders, loan types, and business financing options — including a line of credit, business credit cards, merchant cash advances, or other options. Find out which financing options you are most likely to qualify for by signing up for a free Nav account today.

This article was originally written on July 5, 2022.

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