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Related Questions
Can businesses pay off a Funding Circle loan early?
A9: Yes, businesses can repay a Funding Circle loan in full before the agreed term ends without incurring any early repayment penalties. Funding Circle believes in empowering businesses to have control over their finances, allowing them the flexibility to repay earlier if they choose to do so. This also opens up opportunities for businesses to build a stronger relationship with Funding Circle, potentially accessing subsequent loans tailored to their evolving needs.
How does Funding Circle work?
A2: Funding Circle operates as a peer-to-peer lending platform, where individual and institutional investors can lend money directly to creditworthy businesses. Businesses seeking finance submit an application, which undergoes a thorough assessment of creditworthiness. Qualified loans are listed on the marketplace where investors can review the loan details and decide how much to lend. Once funded, businesses make monthly repayments with interest to the investors.
Who can borrow from Funding Circle?
A3: Funding Circle caters to established businesses in various industries seeking finance for multiple purposes. To be eligible, businesses must have been trading for at least two years, have a minimum turnover of $50,000, and a good credit history. Startups and businesses that have already borrowed through Funding Circle can also apply for subsequent loans to support their growth or expansion plans.
What are the repayment terms for Funding Circle loans?
A8: Funding Circle offers loan terms ranging from six months to five years (terms may vary by country). The repayment terms are designed to align with the borrower's cash flow capabilities and financial goals. Businesses can make fixed monthly repayments over their chosen loan term, combining principal and interest, until the loan is fully repaid.
What is the borrowing limit on Funding Circle?
A4: Funding Circle offers loans starting from $25,000 up to $500,000 (limits may vary by country). The loan amount is determined based on the applicant's creditworthiness, financial performance, and funding requirements. Funding Circle aims to provide businesses with flexible borrowing options that suit their needs, enabling them to achieve their growth objectives.
What interest rates can businesses expect from Funding Circle?
A6: The interest rates charged by Funding Circle depend on various factors, including the creditworthiness of the borrower, the loan term, and the overall financial health of the business. Interest rates can range from around 4.99% to 27.79% (ranges may vary by country), with the rates determined based on a risk assessment. Funding Circle is committed to offering competitive rates to both borrowers and investors.
How long does the loan application process take?
A5: Funding Circle strives to offer a fast and efficient loan application process. Typically, applicants can complete the initial online application in as little as 10 minutes. Once submitted, the assessment and underwriting process takes around 2-5 business days, depending on the complexity of the application. Funding Circle aims to deliver timely funding decisions to ensure businesses have access to the capital they need expeditiously.
How secure is the Funding Circle platform?
A10: Security is a top priority for Funding Circle. Their platform utilizes advanced encryption technology to protect user data and transactions. Additionally, investors have the option to diversify their lending portfolio across multiple loans, minimizing the risk of exposure to a single borrower. Funding Circle also provides ongoing loan servicing, including monitoring repayments and managing collections, to mitigate risk and ensure a secure lending environment.
Are there any upfront fees or hidden costs associated with Funding Circle loans?
A7: Funding Circle loans have transparent pricing and no hidden costs. There are no upfront fees required to apply for a loan. If the loan is approved and funded, a one-time origination fee is charged, which is deducted from the loan amount. The origination fee covers the costs associated with underwriting the loan and maintaining the marketplace platform.
What is Funding Circle?
A1: Funding Circle is a leading global small business lending platform that connects investors with creditworthy businesses seeking finance. Through their online marketplace, Funding Circle provides a faster and more efficient alternative to traditional banks, enabling businesses to access the funding they need to grow and prosper.