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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Funding Circle Business Loans: 2023 Review

Updated on:
Content was accurate at the time of publication.

 Estimated APR range: 11.29% to 30.12% for term loans

 Best for: Established small business owners looking for simple and quick financing options.

ProsCons

 Quick funding

 Transparent requirements

 No hard credit check for most applicants

 Hard credit check for partnerships

 Exact interest rate not disclosed up-front

 Doesn’t report payments to all credit bureaus

 Collateral and personal guarantee required for loans

Funding Circle is one of the largest online small business lenders in Europe and North America. It’s also unique in that it’s technically a peer-to-peer lender: Funding Circle works by issuing a lending decision and provides the loan funds but then anonymizes your small business profile and allows institutional investors to back your loan after it’s already been issued. That lets Funding Circle provide additional loans to other small businesses and allows the investors to receive a cut of the profits from your repayment.

Who is Funding Circle for?

  • You’re looking for a loan or line of credit. No fancy products like merchant cash advances or invoice factoring: you can choose from loans or a line of credit, and that’s it.
  • You’re an established business owner. You’ll need to have been in business for at least two years in order to be eligible for financing. Startup businesses need not apply.
  • You have collateral you can use. Funding Circle will place a lien on your business collateral as a condition of receiving the loan. It accepts a wide range of things as collateral, even accounts receivable and inventory.

ProductLoan amountsRepayment termEstimated APR rangeFees
Business term loans$25,000 to $500,0006 to 84 months11.29% to 30.12%Origination fee: 4.49% to 10.49%
Late payment fee: 5% of missed payment amount
Business lines of credit$5,000 to $250,00012 to 18 months, but may varyVariesDraw fee: 1.6%, but may vary
Late payment fee: 5% of missed payment amount
SBA 7(a) loans$50,000 to $5,000,000Up to 120 monthsRates vary, subject to SBA maximums*SBA guaranty fee: 1.7% for loans up to $150,000, $2.25% for loans over $150,000
Broker fee: Varies, paid to lender
Closing costs: Varies, pays for background checks, lien placements, credit pulls, etc.

*Terms and rates based on SBA guidelines

Term loans

Funding Circle offers a wide range of business term loans ranging from $25,000 all the way up to $500,000. Terms to repay range from over just 6 months all the way up to 84 months. Funding Circle is relatively open about its business loan requirements. Its business loan interest rates vary, though, so you won’t know your exact rate until you apply for a term loan. The good news is Funding Circle doesn’t do a hard credit check at any stage in the application process unless your business is operating as a partnership.

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Line of credit

If you need to borrow money on occasion and don’t want to apply for a new loan each time, Funding Circle’s business line of credit might be a good option. Many lenders charge a maintenance fee to keep your line of credit open, but Funding Circle only charges you a draw fee for each time you borrow money, making it a more affordable option to keep in your back pocket. Each time you draw money out, you’ll get a set repayment period that typically ranges from 12 to 18 months, with payments due at monthly or weekly intervals.

SBA 7(a) loans

Funding Circle acts more like a business loan broker for its SBA loans than for its other financing options. Rather than underwriting your SBA loan directly, Funding Circle will take your application and ferry it out to its network of SBA partner lenders. If one agrees to finance your loan, Funding Circle will pass along the offer letter and facilitate communication between you two, charging a broker fee in the process.

Minimum annual revenue$400,000 for SBA 7(a) loans, amount not disclosed for other financing types
Minimum time in business2 years
Minimum credit score660 (650 for SBA 7(a) loans)

Funding Circle’s products are secured business loans. This means you’ll be required to use some sort of collateral to secure your loan, such as business equipment, accounts receivable, inventory or delivery vehicles. (Note that Funding Circle does not accept real estate as collateral, however.)

Any owners with at least a 20% stake in the business will also need to sign a personal guarantee, agreeing to repay the loan from their personal funds if the business isn’t able to repay the debt.

In some cases, you may need to jump through a few extra hoops to get a business loan or line of credit, such as joining a credit union that Funding Circle is partnering with in order to fund your loan.

Required documents

Funding Circle will ask for a few documents to verify that you meet the business loan requirements before approving your application:

  • Bank statements: Six most recent months
  • Personal tax returns: Most recent year from all owners with 20% equity or more in the company
  • Business tax returns: Two most recent years

If you’re applying for an SBA 7(a) loan, there are a few more requirements:

  • Business tax returns: Three most recent years
  • Business financial statements: Business debt schedule, current profit and loss statement, current balance sheet
  • Personal tax returns: Three most recent years from all owners with 20% equity or more in the company
  • Personal financial statements: Personal financial sheet and signed credit check authorization

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Funding CircleBluevineFundbox
Minimum credit score660 (650 for SBA 7(a) loans)625600
Loan products offered
  • Business term loans
  • Business lines of credit
  • SBA 7(a) loans
  • Business lines of credit
  • Business lines of credit
Time to funding3 weeks for SBA 7(a) loans, 2 – 5 days for other financing types1 day2 days
Starting APR11.29% to 30.12% for term loansNot disclosed4.66% fee for each 24-week repayment plan
Maximum loan size$500,000$250,000$150,000
Minimum annual revenue$400,000 for SBA 7(a) loans, not disclosed for other loan types$480,000$100,000

Funding Circle vs. Bluevine

Bluevine is another popular online small business lender that’s more accepting of lower credit scores as long as you’re able to maintain a higher volume of revenue. You can receive funds faster as well, with credit decisions in about five minutes and funding by the next business day if you opt for ACH transfer (or within a few hours if you pay a $15 wire transfer fee). In addition, Bluevine also offers business checking accounts if you’re looking for a relatively simple all-in-one business financial platform.

Funding Circle vs. Fundbox

Compared to the similar-sounding Funding Circle, Fundbox offers business lines of credit that are geared more towards smaller business owners with bad credit or who have recently opened up shop. To qualify, you’ll have to have at least three months’ worth of account history in a business checking account, a 600+ credit score and the equivalent of at least $100,000 in annual income. Each draw you make is designed to be repaid quicker as well, with automated weekly payments over the course of 12 or 24 weeks.

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