Funding Circle Business Loan Review - TheValu

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Funding Circle Business Loan Review

Loan Amount:
$25,000 - $500,000
Minimum Credit Score:
660
APRs From:
4.99% - 27.79%
Loan Terms:
6 months - 5 years

Funding Circle Business Loan Review

Funding Circle is a reliable business lending company that connects small business owners with investors. This lending platform has linked thousands of companies all over the world with USD8.6 funding.
Do you have a plan to refinance the costly debt or expanding your business and look for a reliable source of funds? Look no further than Funding Circle. Funding Circle offers business loans amounting to USD500.000 at reasonable rates. You can utilize the fund to cover the expenses of purchasing tools and equipment, opening or expanding a business, or hiring workers. If you are new to the Funding Circle business loan, then keep on reading this review.

Pros

  • Low-interest rate compared to other loan lenders out there.
  • Remarkable and ideal for established companies who are not able to qualify or want instant funding compared to SBA loans or banks
  • Easy, streamlined online application with a dedicated account manager.
  • Monthly payment schedule
  • Faster funding compared to SBA loans and the bank usually 1 to 5 days.
  • No payment penalties or extra charges
  • Use to build as well as boost business credit.

Cons

  • Funding is slower compared to other lenders.
  • High eligibility requirement
  • This is not ideal for newly developed businesses or businesses with
  • below or average credit.
  • Big origination charge on all mortgages
  • Personal assurances and company liens are needed.
  • Companies that can meet the criteria might be able to obtain low rates if they are eager to go in the process.

Funding Circle: Company Overview

Funding Circle is a UK-based online lender combined with Endurance Lending Network to make its services bigger and broader to the United States. This online lender offers medium-term installments to established companies or businesses. The lengths of the terms range from 6 months to 5 years. Aside from the origination fee and interest, they charge no feed provided that you pay on time. They have competitive rates too.

Funding Circle Business Loans

As mentioned above, this is an online lending platform that uses the technology to connect business owners looking for funding with investors. Even if institutional and individual investors finance these mid-term loans, the lender itself manages the underwriting approval, disbursement, budget, and repayment processes.

Keeping this thing in mind, below are some necessary information about the installment loans provided by Funding Circles:

Medium-Term Loans:

Loan amounts of $25,000 to $200,000 have 6 to 36 months loan term and have an interest rate of 4.99% to 18.99%

Who Is Qualified for this Loan?

Not everyone is qualified to apply for a business loan? The company has criteria that you need to meet to obtain the funding you want. So, Funding Circle Business loans are ideal for companies needing at least $25,000 funds, businesses with collateral, as well as businesses that have a minimum FICO credit score of 620.

Funding Circle Loan Requirements

There are specific requirements that need to be met in order to qualify for this kind of loan:

  • You must bet two years in the business.
  • No annual revenue
  • You have a credit score of 700+

On top of the requirements, you also need to meet some criteria such as:

Restricted Industries: These loans are not applicable in some industries such as:

  • Non-profit organizations
  • Adult entertainment
  • Gambling
  • Speculative real estate
  • Weapons manufacturers
  • Marijuana dispensaries

Why Consider Funding Circle Business Loans?

There are many reasons why you must consider Funding Circle Business Loans, such as:

Low Rates

No other lenders can beat the low-interest rates offered by Funding Circle. The annual percentage rates offered start at 12 percent, including an origination charge of 3.49 percent and 6.99 percent. The company does not charge a penalty, and disbursing the loan can save interest costs.

Faster Processing

It only takes about ten minutes to apply for this loan and get the money in just a matter of three days. Measure it up to other lenders that take many months to get the application approved and another month to get the money.

Some of the things needed when applying for the loan include:

  • Basic information about the business, including company TAX ID number
  • Names of owners or shareholders with 20 percent-plus ownership
  • Driver’s license
  • Social security number
  • At least one year of business bank statements
  • Two recent years of tax returns
  • Recent personal tax returns
  • Current business debt information

Process of Applying for Funding Circle Business Loan

Submit Application: The first step in applying for a Funding Circle Business loan is to submit an online application. You can do this in just a matter of six minutes and receive a notification from the company if you are qualified within 24 hours.
In the application paper, you need to take down vital information about your company, the owners ( if applicable), and what type you want. There is no charge during this process.
When done, the company will perform an assessment to check the credit history of the applicants. The credit team will do the research for you and gather some information like learning your business to determine which type of loan is ideal for you.
After finding out the loan deal for you, they will assists you collect or gather documents needed. So, ensure to meet the requirements immediately to make the process easier. You might get approved in just a matter of 24 hours. So, make your papers ready when applying.

Process of Funding:

Funding Circle will give you information regarding your loan, which includes the interest rates, terms, as well as applicable charges. Before signing, make sure to assess and understand the policy and terms and conditions thoroughly. Some vital information you need to pay attention to are:

  • Origination Charges: This loan lender has a 5.99% origination charge of the loan’s approved amount.
  • Prepayment Penalties: This lender doesn’t charge you a prepayment fine for medium-term loans. You can pay your loan ahead of time and just pay interest for the amount of money you lend.
  • Repayment Schedule: The loans are paid monthly with a fixed amount.
  • Collateral: This company doesn’t offer unsecured loans. They need personal assurance from business owners with 20 percent. Also, they need a lien on specific business assets, including vehicle inventory, accounts receivable, and equipment.
  • Additional Charges: This lender does not have processing fees, annual fees, and administrative expenses. You just need to pay costs of 5% for late payments.

If your application was approved, you will receive the money in one business day and transfer the money straight to your bank account. However, five days is the shortest time to receive the money.

Repayment Process

The lender will begin debiting money 30 days after you get the money. Funding Circle will file a blanket UCC lien on specific company assets at this level when you get funding from them.

The company will set up auto-payment from your bank account to make sure your payment is updated to avoid the five percent fine. On the other hand, if auto-payment doesn’t work for you, you can pay the loan via wire or cheque. The choice is yours.
Keeping this thing in mind, the installment loans offered by Funding Circle are amortizing. So, meaning you will pay more interest at the start. As the loan principal turns down, so will the amount of interest you need to shell out-, and since there’s no penalty in prepayment, you can save a lot on interest by shelling out early on.

You can utilize your Funding Circle account online to track payment background as well as current loan balance. The lender will send statement letters to you every month. Even if you can’t make payments online, you can reach out or call customer service for more queries about the repayment process, payment history, and loan balance.

It is vital to keep in mind that this lender doesn’t report to credit bureaus- however, it reports late payments to business credit bureaus like Dun and Bradstreet and Experian. So, you can utilize the loan to build as well as boost your credit history.
Lastly, once you have made on-time payments for six consecutive months on your installment loan, you might be qualified to apply for extra funds or refinancing. You can call the account manager or the customer service staff for further information.

Customer Service

You can reach out to customer service through email and phone. You can talk to customer support staff by calling 855-385-5356 and getting assistance with the loan application. What is more, you can also send an email at support@fundingcircle.com.
In case you have an existing loan, you can contact 866-679-7966 or send an email at loanquestions@fundingcircle.com to talk to a dedicated customer service staff.

If you’re facing logging issues into an online account and like to reset a password, there is an instruction offered, or visit the FAQ sections on its official website.

Overall, the customer service is always available from Monday through Friday. You can reach out to the company from 9:00 a.m. to 6:00 p.m.