Published By Janet Gershen-Siegel at June 27, 2018
Written by Janet Gershen-Siegel
Funding Circle is one of several lending companies in the online space. They serve as a peer to peer business lender. We look at the specifics and also drill down into the details.
Funding Circle is online here: www.fundingcircle.com/us/. Their physical addresses are in San Francisco, CA; London and Berlin. You can call them here: (855) 385-5356. Their contact page is here: www.fundingcircle.com/us/about/contact/. They have been in business since 2010.
Funding Circle has a business borrowers’ Bill of Rights, here: www.fundingcircle.com/us/business-borrower-bill-of-rights/
At Funding Circle, borrow $25,000 – $500,000. Decisions come in as little as 24 hours. Get funding in as little as 5 days. Repay on terms from 6 months to 5 years.
Funding Circle’s rates start at 4.99% per year. There are no prepayment penalties. The specifics are in the below table.
|6 months||4.99 – 22.74%|
|1 year||7.05 – 23.74%|
|2 years||7.35 – 24.74$|
|3 years||7.65 – 25.49%|
|4 years||7.95 – 26.24%|
|5 years||8.25– 26.99%|
They charge origination fees of .99% – 6.99%. In addition, their late fee is 10% of the missed payment. There is also a $35 NSF fee.
So the advantages include no prepayment penalty. There are also relatively fast decisions and funding. In addition, the Borrowers’ Bill of Rights is encouraging.
So what are Funding Circle’s disadvantages? It should be obvious: fees, fees, and more fees. They are for origination, missing payments, and also for insufficient funds. Some maximum rates are high!
Fees are high at Funding Circle, but at least they’re being transparent about them. However, interest rates increase as terms get longer, although there is no prepayment penalty. Hence Funding Circle is best for companies which do not need to borrow much and can pay it all back not only on time, but early. Borrowers which need more time to pay a loan back would probably do better elsewhere.
Finally, read the fine print and do the math. Therefore, go over details carefully. And decide if this option will be good for you and your company. In addition, consider alternative financing options beyond lending. This includes building business credit, to best get the money you need. Today, we want to hear from our audience! Share your voice with us about your experiences with online lenders.