Funding Circle Review

Term Loans

Funding Circle also offers a term loan to businesses looking for financing. This funding option can offer businesses up to $500,000 with a fixed rate to be paid over a set number of years. Meaning, it could be quite affordable depending on the rate. This is a good option for business owners that know they need a set amount of money. All of the loans from Funding Circle are secured though, so you’ll need to have collateral.

What is a Business Term Loan?

A business term loan is a great financing option for those businesses looking for a large sum of funding that can be used for a variety of financing needs. You typically need to be a fairly established business to qualify for this funding, and the repayment terms can be nice and long if necessary, especially for those large loan amounts. This is a great option for those businesses that need a loan with a steady, reasonable repayment arrangement.

What Kind of Small Business is Funding Circle Best For?

The funding products offered by Funding Circle are better suited to some businesses than to others. Let’s take a look at who they’re best for. 

Businesses in Need of Significant Lump Sums

Because Funding Circle can offer such large loan amounts in the form of their business term loan, they’re a good financing option for businesses in need of a large specific amount of money for a specific reason. 

Established Businesses

The eligibility requirements for financing with Funding Circle require at least 2 years of business history on the books and a minimum personal credit score of 660. They also require that your business has not had any bankruptcies in the last 7 years. And, for some loans you’ll need collateral to secure the funding.

What Kind of Small Business is Funding Circle Not For?

New Businesses

If you’re new to being a business owner and looking for a startup loan or funding for a brand new business, then Funding Circle likely won’t be the right fit for you. They typically fund businesses with at least 2 years of history. So if you’re a newer business, keep Funding Circle in mind for future needs, but seek your initial funding elsewhere to start. You can check out some alternative lenders below.

Businesses with Low Credit 

Just like Funding Circle doesn’t typically lend to new businesses, the same goes for businesses that have low credit. For each of their financing products, they look for a credit score of at least 650. So if your score is lower than that, work on improving it before applying to Funding Circle. 

*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (October 24, 2022). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.