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.
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 two years. 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.
$25,000 to $500,000.
Estimated APR range
6 months to 7 years.
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
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 two years 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:
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 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 one year in business, $100,000 in annual revenue and a credit score of
These requirements may make OnDeck a better option for newer businesses and those with bad credit.
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
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.