What Is Funding Circle?

In Funding Circle, business owners who require financing are connected with a network of individual and institutional investors who provide funds for small business loans in a peer-to-peer lending setup. Funding Circle makes medium-term loans for up to $500,000 available.  Borrowers repay within five years, at annual interest rates of 4.99% and up.

With Funding Circle entrepreneurs can gain online access to affordable business loans faster and more readily than bank loans.

Find Out if You’re Eligible

Funding Circle Solutions

Term Loan Solution

Your Funding Circle Term Loan Solution Checklist:

Range of Financing

$25,000 – $500,000


6 months – 5 years

Interest rate

4.99% – 22.99%

Minimum requirements to qualify for Funding Circle’s Term Loan Solution:

Minimal Yearly Revenue

No minimum

Your Credit Score


(660 for sole proprietorships)

Minimum Age of Business

2 years

Sorry, we cannot offer Funding Circle Solution if your business is in Nevada, or in the following sectors:

Speculative real estate

Nonprofit organizations

Weapons manufacturers

Gambling businesses

Marijuana dispensaries


Funding Circle: A Member of Fundera’s Lender Network

Fundera carefully curated Funding Circle for their top quality offering which is among the best in their category. The Fundera team assures you that with Funding Circle, you’re getting transparent, fair pricing on best-in-class solutions for your business.

Find Out if You’re Eligible

Application Check List

Provide your personal and business details

Your business EIN

A list of your shareholders and/or owners with at least 20% ownership

Social security number of business owner(s)

Your driver’s license number and state of issue

Six months of business bank statements (most recent)

Business tax returns (two most recent years)

Most recent personal tax return for each business owner with more than 20% ownership

Current business debt information

You Also Need This Information

Even if your business is a sole proprietorship, you will be asked to furnish business bank statements.

All owners holding 20% or more of the business will be asked to sign a personal guarantee on the loan.

Personal bankruptcy? You can still qualify after seven years has passed since discharge.

There is no minimum debt service coverage ratio (DSCR). Nonetheless, Funding Circle prefers an average DSCR above one.

Tax liens? Funding Circle can work with you! As long as you have had less than five tax liens in the past 10 years and the business can show evidencd full payment or proof of a payment plan on their liens.

You Need To Know That

Funding Circle charges a one-time origination fee fee ranging from 3.49% to 6.99% of the approved loan amount. Your creditworthiness determies what fee you are assessed. This fee is deducted from your loan before funds are dispatched.

The late payment fee is calculated as 5% of the overdue amount. Funding Circle charges the late fee on any payment that is more than 10 days late.

All Funding Circle loans are repayable on a fixed, monthly schedule and there is no prepayment penalty.

Some borrowers can get approval and an offer on a loan as soon as one business day after all documents are in. Most business owners receive funds within five days.

Funding Circle does not report to personal credit bureaus. However, reporting on both on-time and late payments is furnished to t Experian (business credit bureau) and Dun & Bradstreet.

Funding Circle takes second position to other lenders in certain circumstances.  These decisions are made on a case-by-case basis.

Funding Circle will perform a soft credit pull. The one exception to this is for businesses whose legal structure is general partnership. Funding Circle pulls personal credit from Experian. Your business credit reports may also be reviewed, but this will not show up on your personal credit reports or change your personal credit score.

They place a blanket lien on your business assets (any vehicles, accounts receivable, equipment and inventory) of funded borrowers. This excludes real estate.

Editor Review

Underwriting by Funding Circle

Funding Circle uses technology to connect entrepreneurs in need of working capital with investors who can lend their money. It functions as a marketplace lender. Some of what Funding Circle handles includes listing loan requests, underwriting and pricing, loan disbursement, and repayment. The loan funds come from Funding Circle’s network of investors, including individual and institutions.

The business loan application process begins when you apply on Funding Circle’s website, which they say takes about six minutes. Usuallu Funding Circle does a soft credit pull when you apply.  If your business is a general partnership, they do a hard credit pull for each. There is no application fee nor is there any obligation when completing a business loan application.

Upon completing the application, Funding Circle assigns you a personal account manager who will call you for more information in about one hour, (according to Funding Circle’s site). Your Personal Account Manager walks you through document requirements, and hells you find terms right terms for you. Your personal credit score, payment history, percent of the business owned and total debt, as well as your business credit score, cash flow, yearly revenue, length of time in business, and public records  are all considered in the process of deciding loan terms.

You will have the opportunity to furnish documents online or send hard copies  to your personal account manager. Bear in mind that the faster you get a complete set of documents in, the faster Funding Circle can get you back an approval. You could receive a decision within 24 hours of their receipt the documents.

Next, your personal account manager will present it to an underwriter to review your information. Funding Circle will also contact you at this point if they need any additional information. Most borrowers receive a loan within five days.

When you get your offer, your interest rate and origination fee, you will also get information about your repayment terms and fixed monthly payment amount. The rate and fees are based on your creditworthiness and other loan terms. Sometimes, Funding Circle can show you as many as three different business loan term options for you to choose from. You can select the term with a monthly payment that fits your business and its unique needs. Upon accepting a loan offer, you can usually have access to your funds within one business day. Becoming eligible for more financing is as simple as making at least six on-time payments on your first Funding Circle.

 Post-Funding with Funding Circle

Funding Circle begins debiting funds one month after you get your loan. They file a blanket UCC lien on some of your business assets at this stage.

Funding Circle sets up automatic payments from your business bank account to make it easy to pay in a timely fashion. You have the option to make your payments by check if you prefer. The fixed payment is deducted monthly until you repay the entire loan.

Funding Circle’s term loan is a fully amortizing loan. Therefore your interest payments are higher in the early stages than the last installments. So, as the principal goes down, so will the interest payments. You can even save on interest by paying off early – and remember that Funding Circle doesn’t charge you a penalty for prepayment.

While you are making your Funding Circle loan payments, you can contact your broker or personal account manager to review your progress as your balance declines. You still get paper statements at your business address in addition to being able to access them on Funding Circle’s online dashboard.

Funding Circle: The Pros

Funding Circle loans are some of the most affordable online business loans. On the whole, your APR will range from 11.67% to 36% and you’ll only pay a one-time origination fee on your loan. Funding Circle’s cost to borrowers is lower than most other alternative lenders because they don’t charge any additional fees.

Also, if you have a good credit score and an established business, but are having trouble qualifying for a bank loan or you are just in need of faster funding, then Funding Circle would work well for you. You simply need to have been in business at least two years and your credit score should be at least 620 to qualify. Additionally, you don’t need a minimum revenue requirement.  Most other lenders require this.

At the end of the day, Funding Circle loans provide a nice balance between speed and affordability. Funding Circle is much quicker to fund than a bank or SBA lender with the help of their simple online application, technology-based underwriting, and a personal account manager assigned to every applicant. They get it done between one and five days, and their loans are much more affordable than other alternative lenders.

Interesred in building your business credit? Because Funding Circle reports your payment history to business credit bureaus, you can use this loan to do just that.  This can be a great help when you want to qualify for financing with even better rates and terms going forward. To help you repay consistently, Funding Circle loans set you up with a fixed, monthly payment schedule.  You always know how much you need to pay and you can manage your cash flow more readily than with the daily or weekly payments often required by other online lenders.

Many other online lenders charge a prepayment penalty if you pay off their loans early. Funding Circle offers you the opportunity to save money when you pay off early because they don’t charge that fee. If you have the cash on hand to pay off early, this is a great incentive to do so.

Lastly, Funding Circle is a great option for consolidating business debt. Your high interest short-term and/or credit card debt could be consolidated under a Funding Circle medium-term loan solution with a better rate. If you successfully refinance or consolidate your business debt with Funding Circle, you’ll be able to switch to a monthly loan payment with lower interest rates.

Funding Circle: The Cons

Funding Circle’s solution comes with a few disadvantages. First off, while Funding Circle reports payment activity to the business credit bureaus, it does not report to personal credit bureaus.  Because having a business loan can increase your debt-to-income ratio and hurt your personal credit score, this is an advantage for some borrowers. For others, however, such as those with small or poor credit files, personal credit bureau reporting could actually be helpful. If you are in this category, you may want to work with another lender.

Also, if you are eligible for a bank loan or an SBA loan, you could probably get better rates, terms, and amounts than with Funding Circle loans. This is possible even with other online medium-term lenders, so shop around and make several applications before accepting an offer.

Funding Circle’s barrier for entry is pretty high. They are not an option for newer businesses or business owners with poor credit since they require at least two years in business and a personal credit score of 620. Plus, even though their application process is quicker than a bank or SBA loan, it still does take longer than some other online lenders’ processes.

Note also that all Funding Circle loans are secured business loans. They require a lien on business assets as well as personal guarantees from business owners with at least 20% ownership in the business. If this requirement for guarantees is too much, you’ll want to explore other options.

Lastly, bear in mind that although Funding Circle completes underwriting quickly and at low cost, there is also a high origination fee starting at 3.49% and reaching as high as 6.99%. Their top competitors charge less than this.

Frequently Asked Questions

Who are Funding Circle’s direct competitors?

How is the underwriting at Funding Circle’s unique?

What interest rates does Funding Circle typically charge?

In reviews what doFunding Circle customers usually focus on?

What are the all the fees I can expect to be charged by Funding Circle?

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
$125,000 Small Business Loan
"Thanks for funding me in literally 24 hours"
$35,000 Lawsuit Advance
"Great choice for first time fix and flippers"
$250,000 Hard money Loan

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
Go Public with Reverse Merger Shells

Go Public With Reverse Merger shells If you’re interested in…

How to Find a Business Attorney

Thanks for visiting DelanceyStreet.com! In this article, our goal is…

Best Business Cash Flow Loans

Even if you run an extremely business, one of the…

Small Business Loans for Women: A Toolkit for 2020 (and Beyond)

Women entrepreneurs start more businesses than ever before, at a…

Best Accounting Softwares

40 to 46 percent of small business owners and executives consider bookkeeping and…

Delancey Street understands funding like no one else!
Steven Norris
Get Funding Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Apply Now