Funding Circle

4.5/5 stars

Funding Circle provides an in-house line of credit with larger loan amounts and a dedicated account manager, bringing the benefits of a traditional bank with the convenience of an online lender.

Pros

Competitive Rates: Funding Circle offers lower interest rates than many other online lenders, making it an attractive option for established businesses
No Prepayment Penalties: Businesses can repay their loan early without any extra fees, saving on interest costs
Quick Funding: Once approved, funds are typically dispersed within 1-5 business days
Transparent Requirements: Funding Circle has clear loan terms, making it easier for businesses to understand their financing options

Cons

Higher Credit and Revenue Requirements: Businesses need a minimum credit score of 660 and at least two years in business to qualify, which may be restrictive for startups or businesses with lower credit
Origination Fees: Fees range from 4.49% to 10.49%, which can add to the overall cost of the loan
Collateral and Personal Guarantee: Most loans require collateral (excluding real estate) and a personal guarantee, putting personal assets at risk if the business defaults

The Bottom Line

Funding Circle is best for established businesses with strong credit and a need for larger loans.

This page may contain affiliate links. Our assessments are grounded solely in the product’s merits and performance.

Loan Types

Term Loans

Loan Amount: $25,000 to $500,000
Repayment Terms: 6 months to 7 years
APR Range: 7% to 30%, depending on the borrower's creditworthiness

Lines of Credit

Loan Amount: Up to $250,000
Repayment Terms: Varies, with interest paid only on the amount drawn

Pricing information is retrieved from publicly accessible pricing materials. The actual cost may vary based on specific plans chosen. Always check directly with the seller for the final quote.

Pricing information last updated March 7, 2024.

Qualifications

Minimum Credit Score: 660
Time in Business: At least 24 months
Revenue: Minimum of $50,000

Application Process

The process begins with an online application that takes just a few minutes to complete. Applicants will need to provide basic business and financial information, including tax returns and bank statements. Decisions are typically made within 24 hours, and funds can be received within 1-5 business days depending on the type of loan.

Applicants may need to provide up to 6 months of bank statements and personal tax returns for larger loan amounts.

Product Review

Funding Circle is a lending platform that connects small business borrowers with institutional and individual investors. Founded in the UK in 2010, it expanded to the U.S. to address small businesses’ challenges in securing traditional financing.

Some key features include:

Quick Access to Large Loans: Funding Circle provides up to $500,000 for term loans, which is higher than many other online lenders
Personal Account Manager: Each borrower is assigned a dedicated account manager to assist through the loan process
No Prepayment Penalties: Early repayments can reduce interest costs without additional fees

Best for: Established Businesses Needing Larger Loans

Funding Circle is best suited for businesses that have been operating for at least two years and have a proven revenue stream. Its loan terms and larger loan amounts make it ideal for companies looking to expand, refinance debt, or make large purchases. With term loans up to $500,000, Funding Circle is an excellent choice for businesses requiring significant capital.

If you need more than $500,000, Funding Circle’s acquisition by iBusiness Funding means that they now have partners that allow access to even more funding options, including SBA loans.

However, it is important to note that since Funding Circle requires collateral and personal guarantees, it may be better suited for businesses with assets like equipment, vehicles, or inventory to back the loan.

Funding Circle stands out for its competitive rates, fast approval process, and high loan limits. It is ideal for established businesses with good credit and assets looking for long-term financing or larger loan amounts. However, its higher credit score and revenue requirements, along with origination fees, may limit its appeal to newer or smaller businesses.

Funding Circle

Funding Circle provides an in-house line of credit with larger loan amounts and a dedicated account manager, bringing the benefits of a traditional bank with the convenience of an online lender.