Funding Circle Review

Funding Circle Review

Most businesses find it hard to get the finance that they need in their operations. Additionally, investors have had a challenge in achieving their desired growth. These are some of the reasons that inspired the formation of Funding Circle. Funding Circle came into existence to provide a platform in which investors and businesses and interact and support one another in achieving the individual goals.  

Investors lend businesses directly via Funding Circle and get a chance to earn returns that can help them grow. On the other hand, businesses are assured of easy and fast access to capital for growth, creation of jobs, offer support to the society as well as push the economy further. Funding Circle is a platform that makes sure that everyone grows in a way. 

What type of funding does Funding Circle provide?

Highlights

requirments_icon1Loan Amount
Unsecured loan of between £5,000 – £500,000  

Terms
6 months or 5 year

Fund received

Approval: in 24 hours, No early repayment fee

What do I need in order to qualify for funding?

You will need a few things to qualify for funding:

  • A minimum credit score of 660
  • Be a high income earner –have a yearly income of at least $76,860
  • Have a low debt to income ratio (up to 40%)

How do I apply to get funding?

You will need to make an online application that can take barely 10 minutes and has four sections. 

First step: you will check whether you are eligible for a loan after providing the details of your business. 

Second step: create an account with Funding Circle. 

Third step: enter your loan details including your business information and the amount that you are applying. 

Forth step: submit your details for scrutiny and approval. 

Find the right funding for your business

What is the process to receive funding?

The application process takes less than 10 minutes after which your details are reviewed within 48 hours. If approved, your funds will be available for withdrawal after 7 days. 

Does Funding Circle run a credit check? 

Yes 

Do I have to provide security or a guarantee? 

No 

Are there fees involved? 

You only pay one fee and you are not entitled to repayment fees. All what you are required to pay is the outstanding amount based on your principal amount, as well as the accrued interest up to the repayment months. The payable fee depends on the loan term as well as your risk band. 

  • For secured and unsecured business loan repayable between 6 and 1 year, you will pay a fee of ranging from 1.5% to 6%; while a loan term of 2-3 years you will pay 2.5%-6% in fee; and 4-5 years you will pay 2.7%-6% 
  • For asset finance of 6months – 5 years, the fee is 5%. 
  • Property finance of 6 months to 5 years, the fee is 2%. 

What are the loan rates? 

The loan rates 4.5%  

What documentation do I need to provide? 

You will need to provide the following documents: 

  • Bank statements of your business (last 3 months) 
  • Prepared accounts (recently filed or formally) 

Depending on the information you provide, you may be asked for more documents that might not be limited to tax returns, and management accounts among others. You should send all these documents to credit@fundingcircle.com 

How long will it take for money to get into my account? 

7 days after approval 

What happens in the case of a default? 

Funding Circle Trustee Limited is tasked with the responsibility of recovering the loan amount, with an interest charged. 

Is Funding Circle regulated? 

It is regulated by the Financial Conduct Authority