In-Depth Analysis

Funding Circle Review

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Written By
I. Mitic
February 07, 2022
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Funding Circle is a peer-to-peer lending marketplace that connects investors with small business owners in need of some additional funding. Based on Funding Circle reviews, this lender is an excellent choice for applicants with good personal credit history who run established businesses and need the funds in less than a week.

$25,000 - $500,000

APR range 12% - 36%

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Fortunly Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

$25,000 - $500,000
12% - 36%
See Full Review
At least 9 months
Not stated
Six months to five years
One to five business days
49 states + DC
pros thumb up Strengths
  • Competitive rates
  • High loan amounts
  • Quick and easy application process
  • No minimum revenue requirements
  • Multiple customer support channels
  • Useful Small Business Loan Calculator tool
  • Automatic payments
  • No prepayment penalties
pros thumb up Weaknesses
  • Borrower requirements may be hard to meet
  • A business lien and personal guarantee are required

Funding Circle Overview

Funding Circle is an online lending marketplace that matches institutional and individual investors with small business owners in need of some additional capital. Launched in the UK, this peer-to-peer small business loan platform has quickly expanded to offer its services to American borrowers. Nowadays, the company also operates in Germany and the Netherlands.

If you’re having trouble meeting the eligibility criteria of a bank or credit, but you’re still hoping for high loan amounts and reasonable rates, we suggest you consider applying for Funding Circle loans. This lender’s comprehensive underwriting process includes reviewing the business’s overall financial health, instead of determining loan terms based only on the business owner’s personal credit score.

Providing that you run an established business, Funding Circle may be a solid choice if you are looking to refinance a costly debt or expand your business and need the cash fast. This provider’s rates and fees are relatively low compared to those of other online lenders, however, they still can’t beat the single-digit interest rates on an SBA loan.

On the bright side, the application process can be completed in less than ten minutes and the funding takes only a few business days, so the loan processing speed makes this lender stand out.

How does Funding Circle compare to other lenders?

Funding Circle Logo
Funding Circle
APR Range

12% - 36%

Min. Credit Score


Fundation Logo
APR Range

7.99% to 29.99%

Min. Credit Score


Lendio Logo
APR Range

4.00% - 30.00%

Min. Credit Score


Funding Circle Review: Types of Financing Available

As far as financing types go, Funding Circle term loans are the only option. A term loan is a variation of an installment loan and is considered to be one of the most popular funding types provided by online lenders, along with lines of credit.

Upon agreeing to the loan terms with the lender, the borrower receives the full loan amount (minus the origination fee) and then repays it in a series of fixed payments according to a repayment schedule. Each payment consists of a portion that goes towards repaying the principal and a portion that settles the accruing interest.

Funding Circle’s Term Loans

If you are looking to borrow between $25,000 and $500,000, and plan to repay the loan in a period of six months to five years, you should explore this lender’s funding options. As one of the best small business loan providers, FundingCircle offers fixed monthly payments, predetermined interest rates, and a predictable repayment schedule.

Before you consider applying for a term loan from this small business lending marketplace, make sure that you can meet Funding Circle’s minimum borrower requirements. These include:

  • At least two years in business
  • Business owner’s personal credit score of at least 660
  • No personal bankruptcies within the last seven years
  • The business cannot be based in Nevada
  • The business must be operating in an eligible industry

Application Process

Funding Circle takes great pride in providing a transparent, quick, and easy application process. Filling out the lender’s online questionnaire doesn’t take more than ten minutes and the company’s agents get back to you with an offer in less than a business day after you’ve submitted all the documents required for the application. According to Funding Circle reviews, most borrowers get the funding within five business days.

To get a term loan from this peer-to-peer lender, you’ll need to go through these steps:

  • Submit an online application through Funding Circle’s website.
  • An account manager will get in touch with you to obtain more information about your business, request additional documentation, and discuss estate loan terms.
  • The lender’s underwriting department will come out with an official offer.
  • Should you decide to accept the offer, the lender will send you a contract.
  • Once you’ve signed the contract, the funds will be wired into your business bank account in a few days.

What information do I need to apply?

To start your application for Funding Circle financing, you’ll need to provide some basic information about your business and yourself. After that, the lender may also ask for:

  • Additional company details, such as your business tax ID
  • Names of shareholders or owners with at least 20% of ownership (if applicable)
  • The business owners’ Social Security numbers
  • Your driver’s license number and state of issue

As far as additional financial information goes, you may be required to submit:

  • Business tax returns for the two most recent years
  • Personal tax returns for each shareholder or business owner with at least 20% of ownership for one (most recent) year
  • Six most recent monthly bank statements

Note that Funding Circle will do a soft credit check of your personal credit once you’ve submitted your initial application. After that, a dedicated account manager will work closely with you to help you review your estimated loan terms and go through the full application process.

Funding Circle business loans can be used in a variety of ways. Popular loan purposes include covering costs of hiring a new staff member, expanding your business to a new location, marketing and advertising, purchasing inventory or equipment, acquiring new contracts, or repaying existing debt.

However, it’s important to mention that using a business loan from Funding Circle to refinance your personal loan isn’t an option.

Funding Circle Loan Features

Funding Circle offers term loans ranging between $25,000 and $500,000 with repayment periods from six months to five years. We recommend Funding Circle US as one of the best financing companies for small business owners for its transparency, flexible loan terms, and fast loan processing.

However, there are a few points where this lender falls short. Funding Circle requires a minimum of two tears of business history with revenue, ruling out any startups and small businesses with an unsteady growth trajectory. Funding Circle’s credit score requirements can also be hard to meet as business owners can’t apply for funding from this provider unless their FICO score is at least 660.

Loan Amount and APR details

Funding Circle USA’s term loans come with a fixed interest rate that won’t change over the life of your loan, predetermined monthly payments, and a one-time origination fee. Here’s an overview of loan terms that you should expect from this lending institution:

  • Loan amount: $25,000 – $500,000
  • Estimated APR: 12% – 36%
  • Interest range: 4.99% – 27.79%
  • Origination fee: 3.49 – 6.99%
  • Other fees: 5% late payment fee, $35 non-sufficient fund fee, no prepayment penalties
  • Loan term: 6 months to 5 years
  • Repayment options: Monthly

The lender’s site features a useful small business loan calculator that lets you explore and compare different loan terms. However, your true loan cost will be affected by your creditworthiness, the business’s overall financial strength, and a few additional factors, such as cash flow trends, business type, its maturity, and profitability.

You should also bear in mind that this lender even takes online Funding Circle reviews by customers when assessing your eligibility. Lastly, your APR will be determined by the loan’s term length.

Funding Circle terms include a one-time origination fee and a fixed interest rate. Aside from a potential late payment or a non-sufficient fund fee, you don’t need to worry about any unexpected deductions from your account. Overall, borrowers with excellent qualifications can expect highly competitive rates, even when compared to traditional lenders’ terms.

With a minimum of 6 months and a maximum of 5 years, the repayment periods are standard for short- to medium-term financing options. Should you make a decision to pay your loan off early, you’ll be able to do so without having to face prepayment penalties/

Keep in mind that all of the Funding Circle lending options are secured. Apart from the business owner’s personal guarantee, this lending marketplace requires a lien on certain business assets. According to the provider’s website, the collateral includes inventory, equipment, vehicles, and accounts receivable.

Eligible and Non-Eligible Businesses

This funding provider’s loans are good for business owners with fair to excellent personal credit scores who are on the hunt for large loan amounts and long terms. While the lender doesn’t have an annual revenue threshold, an eligible business must be profitable for at least two years.

According to Funding Circle reviews, this lending marketplace is happy to offer a loan to a variety of industries and occupations including pharmaceutical companies, veterinary clinics, and cosmetic brands. However, businesses operating in certain fields can’t get a loan from any of Funding Circle’s investors. Restricted industries include:

  • Speculative real estate
  • Adult entertainment
  • Non-profit organizations
  • Weapon manufacturers
  • Gambling businesses
  • Marijuana dispensaries

As a global small business lending marketplace, Funding Circle offers its services to businesses located in several countries. In the US, the lender provides funding to businesses based in 49 out of the 50 states and Washington, D.C. Due to the state’s complicated lending regulations, Funding Circle’s partners and investors cannot offer loans to businesses located in Nevada.

Repayment Terms

As far as repayment goes, the deal is simple. After receiving the funds from Funding Circle, you’ll need to start making monthly payments a month later. The lender can set up automatic payments and deduct the funds directly from your business’s bank account each month.

However, if you don’t feel like automatic payments are suitable for business, the lender also lets you make payments via check. According to Funding Circle borrower reviews, most customers go for automatic payments, but it’s still good to have the options.

As there are no prepayment penalties, you can repay the loan early and save on interest. Also, note that should you fail to make timely payment, it’ll cost you 5% of the amount due. Unsuccessful payment will incur a $35 fee, so we suggest you make sure that your business checking account has sufficient funds when monthly payments are due.

It’s also important to mention that Funding Circle reports both on-time and late loan payments to two business credit bureaus – Experian and Dun & Bradstreet. Making timely payments on your Funding Circle loans can help you qualify for better terms on furniture financing and get lower premiums on business insurance.

Much like most of Funding Circle’s competitors, this lender doesn’t report your payments to consumer credit bureaus.

The Bottom Line

Although Funding Circle’s application process may take a little longer than with other online lenders, it’s still much shorter and simpler than applying for funding from most banks or credit unions. While many traditional lending institutions may be able to offer better loan terms than Funding Circle, if you need funds in less than a week, you’d still be better off with this lender.

The company’s transparency, excellent customer support, and a small number of complaints are also among its strong points.

However, Funding Circle’s requirements for eligible borrowers aren’t the loosest out there. The lender’s competitive rates and terms are only worth looking if you have a strong credit history and run an established business. New business with unstable cash flow will have to explore other options.

Funding Circle FAQ

Will applying for a business loan from Funding Circle affect my credit?


In most cases, Funding Circle only conducts soft personal credit inquiries to underwrite or to service a loan. Soft pulls cannot impact your personal credit score and are only conducted after you’ve agreed to them over the course of the application process.

Does Funding Circle report to credit bureaus?


Funding Circle reports both on-time and late payments to business credit bureaus. However, it doesn’t report to consumer credit bureaus. Making timely payments on Funding Circle loans can help you get better deals on future business funding and insurance, however, it won’t affect your personal credit score.

Is Funding Circle legitimate?


According to the Better Business Bureau, Funding Circle is rated with an A+. Since its launch in 2010, this lending marketplace has issued $11.7 billion in small business loans to more than 81,000 applicants globally. Nowadays, it’s considered to be one of the best small business lenders in the US online lending market.

How can I contact Funding Circle’s customer service?


Should you have a question, a comment, or a complaint, the options to get in touch with Funding Circle’s support team include emailing [email protected] or calling +1 (855) 385-535. You can also reach out to the lender’s customer service via Twitter, Instagram, and Facebook. According to reviews on Funding Circle, the company’s customer care department is quick-to-respond and very knowledgeable.

Does Funding Circle offer startup business loans?


As a peer-to-peer lending marketplace Funding Circle connects business owners with individual and institutional investors that provide small business loans. However, given that it only offers to fund businesses that are at least two years old, newly-founded companies and startups can’t get a loan from Funding Circle. In fact, based on Funding Circle reviews, this lender’s average client has been in business for more than ten years.