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Funding Circle Business Loans: 2024 Review

Funding Circle offers competitive rates for online term loans. You'll need good personal credit and an established business to qualify.
By Rosalie Murphy, Lisa A. Anthony
Last updated on January 2, 2024
Edited bySally Lauckner
Fact checked and reviewed

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Our Take

The bottom line:

Funding Circle is well suited for established businesses with good credit that prefer a streamlined application process.
Full review

Funding Circle - Online term loan

Max Loan Amount
$500,000
Min. credit score
660
Apply now

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Pros & Cons

Pros

  • Cash can be available within three business days.
  • Competitive rates for online term loans.
  • No minimum revenue requirement.
  • Terms up to seven years.

Cons

  • Must be in business for a minimum of two years.
  • Minimum credit score is higher than some other lenders.
  • Requires business lien and personal guarantee.

Compare to Other Lenders

at Funding Circle

at OnDeck

at Bluevine

Max loan amount

$500,000

Max loan amount

$250,000

Max loan amount

$250,000

Min. credit score

660

Min. credit score

625

Min. credit score

625

Full Review

Funding Circle is an online lender that offers small-business loans of up to $500,000. These term loans can be a good option for established business owners that want competitive rates, but also need fast funding.
Funding Circle is known for its streamlined application process and multiple loan options. In addition to its business term loan, Funding Circle acts as a marketplace, connecting business owners to other lenders for business lines of credit and SBA 7(a) loans.
This review will focus on Funding Circle's term loans.

How much do you need?

with Fundera by NerdWallet

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
15.22
% to
45
%.
Fees
  • Origination fee ranges from 4.49% to 8.49%.
  • Late fee of 5% of missed payment amount.
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

Funding Circle’s annual percentage rates range from
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

It can take just a few minutes to apply for a Funding Circle loan, and you could receive funds within three days. For comparison, it can take months to be approved for an SBA loan.

Where Funding Circle falls short

Not for new businesses

Funding Circle requires at least
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

You’ll need a personal credit score of at least
660
to qualify for a Funding Circle loan. For comparison, some online lenders accept scores of 600 or lower.
Funding Circle also requires a lien on your business assets, which may include equipment, vehicles or inventory. Like most other business lenders, it also requires a personal guarantee from the primary business owners, which gives the lender the right to pursue your personal assets if your business fails to repay the loan.

Fast, but not the fastest, option

Although you can get a loan from Funding Circle in a matter of days, there are other online lenders, like OnDeck and Bluevine, with even faster funding times.

Funding Circle loan requirements

Funding Circle’s minimum borrower eligibility requirements include:
  • Minimum credit score:
    660
    .
  • Minimum time in business:
    24
    months.
  • Annual revenue: No specified minimum.
Business owners cannot have a personal bankruptcy within the last seven years in order to qualify for a Funding Circle loan.

Alternatives to Funding Circle

OnDeck

OnDeck offers business term loans up to $250,000 with repayment terms up to
24
months. Although interest rates will likely be higher with OnDeck than Funding Circle, they have more flexible qualification requirements and faster funding times.
To qualify for a loan with OnDeck, you'll need at least
12
months in business, $100,000 in annual revenue and a credit score of
625
.
These requirements may make OnDeck a better option for newer businesses and those with bad credit. Read our full OnDeck review.

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.
SBA 7(a) loans have long repayment terms, large loan amounts and competitive interest rates. Current rates range from
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.

Find the right business loan

The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.

Apply now

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Methodology

NerdWallet’s review process evaluates and rates small-business loan products from both traditional and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings formula takes into account features we consider to be small-business friendly, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.

Frequently Asked Questions

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