The first thing you look at with a loan is the interest rates because this dictates how much the loan would actually cost you. There may be some companies that offer quick and easy loan applications with no extra fees but kill you with high interest rates. So it is good to window shop and check multiple loan providers for the interest rates they charge.
When it comes to the interest rate with Funding Circle, there are a few things you should know. Since they are not a direct lender but pool together various borrowers and lenders, the interest rates has a rather wide range from 4.99% to 22.79%. Banks and other lending companies tend to have a smaller range. The interest rate that you would get would be based on the length of the loan and your credit profile to assess how risky it is to lend you money.
The only fee that Funding Circle charges is an origination fee when the loan proceeds are credited, but other than that, there are no more fees. So you can choose to pre-terminate your loan at any time to save on interest charges if you do end up with a high interest rate.
Funding Circle customer support is limited to an FAQ section for self-help along with email and telephone support. The email address and telephone numbers of the specific department for your concerns are listed on their website. Also, the outbound call to you by the loan specialist when you apply for a loan is also a good way to ask questions or clarify concerns that you may have.
Much like any other loan application, there are certain documentary requirements that you must submit in order for Funding Circle to evaluate your application. There are different requirements depending on the amount you are looking to borrow so here is a rundown of what you are going to need.
For loans under $200,000, there are fewer requirements. You just need to submit the latest 3 year business tax returns, latest personal tax return (including W-2s) and the latest 6 months’ worth of business bank statements.
These are also the documents you need to submit if the loan amount is over $200,000, but there are also additional requirements. You would also need to submit the YTD balance sheet and income statement of the business along with the Outstanding Business Loans and Credit Worksheet.
What's the Verdict on Funding Circle?
Funding Circle Review 2020 – Conclusion
Funding Circle may not be the fastest or cheapest way to get a small business loan, but the service that they provide is very useful. If your business has already been operating for at least a year and needs funding for a renovation or other big financial needs, then check out the services that Funding Circle has to offer. They may just connect you with the lender or group of lenders that can give you the amount that other loan providers cannot.