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Get Better Financing with Funding Circle Reviews

Janet Gershen-Siegel
July 28, 2020
Funding Circle Reviews Credit Suite

Looking for Funding Circle reviews? We took a look at this alternative lender to see if the information we had on them is still true. Welcome to Funding Circle reviews.

Funding Circle is one of several lending companies in the online space. They have loaned over $11.7 billion, with over 4.9 million loans under management. They work as a peer to peer lender.

In the US, Funding Circle leads the Marketplace Lending Association, along with LendingClub, Prosper, and Sofi.

Funding Circle Reviews: Background

Funding Circle is online here: www.fundingcircle.com/us/. Their physical addresses are in San Francisco, Denver, 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 Reviews: Their Borrower’s Bill of Rights

Funding Circle has a business borrowers’ Bill of Rights, here: www.fundingcircle.com/us/business-borrower-bill-of-rights/

It says:

 1. The Right to Transparent Pricing and Terms 

You have a right to see the cost and terms of any financing you are offered in writing and in a form that is clearcomplete, and easy to compare with other options, so that you can make the best decision for your business.

2. The Right to Non-Abusive Products 

You have a right to loan products that will not trap you in expensive cycles of re-borrowing. Lenders’ profitability should come from your success, not from your failure to repay the loan according to its original terms.

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3. The Right to Responsible Underwriting 

You have a right to work with lenders who will set you up for success, not failure. High loss rates should not be accepted by lenders simply as a cost of business to be passed on to you in the form of high rates or fees.

4. The Right to Inclusive Credit Access 

You have a right to fair and equal treatment when seeking a loan.

5. The Right to Fair Collection Practices 

If you are unable to repay a loan, you have a right to be treated fairly and respectfully throughout the collections process. Collections on defaulted loans should not be used by lenders as a primary source of repayment.

Funding Circle Reviews: SBA 7(a) Loans

At Funding Circle, you can borrow anywhere from $20,000 to $5 million from the SBA. Loan terms run for up to 10 years. Pay an interest rate of prime +2.75%. as of the writing of this blog post, that is 6%.

There are no prepayment penalties. 


Funding Circle will charge a one-time origination fee on each loan they fund. This amount ranges from 3.49% to 6.99% of the approved loan amount.

Funding Circle Reviews: Qualifying for an SBA 7(a) Loan with Funding Circle

Small businesses which meet the below criteria are eligible to apply for an SBA 7(a) loan:

  • In business for more than 3 years
  • At least $500,000 in annual revenue
  • No federal tax liens
  • 680 FICO for personal Guarantor
  • Positive book value (assets > liabilities)

Qualified Industries

Because these are SBA loans, Funding Circle must conform to the SBA’s requirements when it comes to industries. Therefore, they cannot lend to these industries:

  • Speculative real estate
  • Nonprofit organizations
  • Weapons manufacturers
  • Gambling businesses
  • Marijuana dispensaries
  • Pornography

Funding Circle Reviews: COVID-19 Relief

As a part of working with the Small Business Administration, Funding Circle offers their COVID-19 relief, in the form of the Paycheck Protection Program.

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Funding Circle Reviews: More Information

Apply online, and a personal account manager will reach out to you within one hour. They will ask about your business and request and collect documentation. They will decide on your loan in as little as 24 hours. 

If you accept a loan offer, you can get funding in as little as one business day. You can return for more funding in as little as six months.

If your monthly payment is more than 10 days late, they may charge a late fee of up to 5% of each missed payment amount. The late fee will be payable immediately and is in addition to the missed payment.

They will place your loan into default if you miss three or more consecutive payments, four out of six monthly payments or do not comply with your loan agreement.

Funding Circle Reviews: Advantages

So the advantages include no prepayment penalty. There are also relatively fast decisions and funding. In addition, the Borrowers’ Bill of Rights is encouraging. The maximum rates you could pay are within reason.

Funding Circle Reviews: Disadvantages

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. 

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Funding Circle Reviews: Takeaways

Fees are high at Funding Circle, but at least they’re being transparent about them. Plus, there is no prepayment penalty – but there are late fees. 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. Funding Circle reviews should be just the beginning.

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