Funding Circle Business Loans: 2024 Review
Table of Contents
Full Review
This review will focus on Funding Circle’s term loans.
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Funding Circle is best for borrowers who:
-
Are looking to expand your business or refinance costly debt: Funding Circle offers loans up to $500,000 at competitive rates. You can use the money to cover the costs of buying equipment, hiring employees or opening a new location.
-
Have good credit and an established business: Although the company doesn’t have a minimum annual revenue requirement, you do need to have been in business for at least
24
months. You’ll also need a credit score of at least
660
and no personal bankruptcies among your business owners in the last seven years.
-
Are looking for fast cash: Funding Circle’s application process is quicker and easier than the process to qualify for a business bank loan, and borrowers can receive their money in two business days.
Funding Circle business loan features
Funding Circle offers business term loans of up to $500,000 with repayment terms ranging from six months to seven years.
|
Loan amount |
$25,000 to $500,000. |
|
Estimated APR range |
|
|
Fees |
|
|
Terms |
6 months to 7 years. |
|
Repayment schedule |
Monthly. |
|
Funding speed |
As fast as three days. An underwriting decision can be delivered in 24 hours. Once you sign the loan agreement, you’ll typically receive your funds the following business day. |
Where Funding Circle stands out
Competitive rates compared with other online lenders
15.22
% to
45
%. This lender doesn’t charge a prepayment penalty, and paying off your loan early can save interest costs.
There’s no minimum annual revenue requirement
There is no annual revenue amount set by Funding Circle. However, revenue and other factors such as credit score and cash flow are considered in the underwriting process and in determining the loan amount offered to you.
Faster processing than banks and the SBA
Where Funding Circle falls short
Not for new businesses
24
months of business history. On average, its borrowers have been in business for 11 years and have annual revenue of $1.4 million.
High qualification standards
660
to qualify for a Funding Circle loan. For comparison, some online lenders accept scores of 600 or lower.
Fast, but not the fastest, option
Funding Circle loan requirements
Funding Circle’s minimum borrower eligibility requirements include:
Alternatives to Funding Circle
OnDeck
24
months. Although interest rates will likely be higher with OnDeck than Funding Circle, they have more flexible qualification requirements and faster funding times.
12
months in business, $100,000 in annual revenue and a credit score of
625
.
SBA loan
On the other hand, if you have strong credentials, like you’d need for a Funding Circle loan, and can wait longer for financing — you might consider opting for an SBA loan.
11.5
% to
15
%.
Compared to Funding Circle and other online lenders, however, SBA loans are much slower to fund and require lengthy applications. Nevertheless, if you’re willing to put in the time and patience — and can qualify — an SBA loan may offer some of the best terms on the market.
