Much like the review we did about Angellist a few days back, this is one of those serious funding websites. Meaning, you got to know your stuff when you sign up! Our Funding Circle review will tell you all the basics.

Funding Circle is a P2P (peer to peer) loan provider that focuses on lending capital monies to small businesses direct, no bank needed. The aim of this review is to provide an unbiased look at the company and what it is all about.

What People Like

Users of Funding Circle said they liked the customer service and also indicated the application process was fast and had a quick turnaround time when it came to approving loan amounts for borrowers. One user stated that she was impressed with how quick the service was receiving her loan funds just four days after submitting all required paperwork. The interest rate was reasonable, she added. This review came from Better Business Bureau.

What They Didn’t Like

Funding Circle has a very strict set of borrower requirements. Emails and phone calls came in droves from account managers. Investors complained about changes in the lender’s investment policies that put a limit on whom they could lend their money to.

One user stated that the application process became very clunky after the initial online application. Specifically, there were many calls placed to the borrower about what to do between each step-in order to secure funding.

Pricing at Funding Circle

Small business owners interested in Funding Circle can take loans ranging from $25K to $500K, payable in ranges from 6 months to five years. The interest rates are fixed for the life of the loan. They start at 4.99% per year, and this is of course dependent upon the credit score of the borrower as well as the term of the loan.

Some Quick Facts

• Must have minimum credit score of 620 for Funding Circle
• Minimum business time is 2 years
• Origination fees range from .99% to 6.99%

Funding Circle will also impose a late fee equivalent to 5% of the missed payment amount if you do not pay on time.

What Are Some Funding Circle Features?

You can look forward to the following with Funding Circle:

• Integration
• Great terms and reasonable fees
• Fast service
• No penalty for prepayment
• Online application process

General Funding Circle Info and Queries

What documents do I need? I am an interested borrower.

You will need to submit 2 years of your most recent business tax returns. You’re also going to need one year of the most recent personal tax return, six months of your most recent bank statements, and your business debt info. Funding Circle may also require borrowers to provide any additional documents to provide additional support to the loan application.

I own a (insert venture here) business, will Funding Circle come through?

Funding Circle will not provide lending to businesses that belong to industries like weapons manufacturing, gambling, nonprofits, marijuana dispensaries, speculative real estate, or pornography. If you are interested, you can contact the Funding Circle support team to find out if your business is within the eligibility requirements.

Tell Me About Paying Loans

Your loan payments are due month. If you are a new borrower, the payments begin one month from the day that they received the fund.

Why Use These Guys?

You get faster loan processing than banks and the Small Business Association.

It could take you only ten minutes to apply through Funding Circle. You can then get your funds in just ten days after that. This is a welcome change to the sometimes months it can take getting approved for an SBA loan, which involves a review process that drives many small business owners crazy with how slow and intimidating it is.

Furthermore, the rates are a lot lower than what you find elsewhere. It is hard to beat the low interest rates on the SBA loans, which are typically quite low. However, Funding Circle has some pretty manageable terms. APR rates go from 10.91% all the way to 35.5%.

As we mentioned earlier there is no prepayment penalty. You could use a six-month loan to deal with a short-term problem like cash flow, for instance. Then, when things pick back up, you can repay with no penalty.

Why Not Use Them?

You have to really know your stuff.

This is not for startups, recently started businesses, or businesses that have small revenue streams or a dicey growth trajectory. The average borrower has been in business for about ten years, and revenue is about $2 million with an average of ten employees. The founder himself says that they only lend to established business that have the cash flow needed to support loan repayment and a solid growth plan.

Another thing you have to think about is the high standards for qualification that Funding Circle places on its applicants There is no longer a minimum requirement, but many are earning that high $2 million or so. You also have to have that 620-credit score, whereas other lenders only want 500 as their minimum. The average lender has a score of 700, says the website. So, you might enjoy that quick turnaround, but you better be ready to meet those requirements they lay out.

Time Crunch: Ten days is not as long as a traditional bank might take, but the ten-day approval time may be too long if you need cash and you need it fast. You might want to think of other online lenders, especially if getting all that paperwork together will be a problem.

Our Bottom Line

Funding Circle is a fine website if you meet the standards of their average borrower. But, seeing as how many of us do not, consider working with us at CrowdfundingBum.  We don’t worry about how much money your business takes in, we just want to help most all startups and creators. Check us out for built in backers and great customer service.

Final thoughts.

Before you go running off to Funding Circle, we hope you stick around a while to find out more about all that Crowdfunding Bum has to offer. You will find ample reasons to choose us as your funding source.

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