Funding Circle

Founded in 2010, Funding Circle emerged as a pioneer in marketplace lending for small businesses, creating an alternative financing channel outside of traditional banks. Initially launched in the United Kingdom, the company expanded to the United States in 2013 and has since facilitated over $18 billion in loans to more than 130,000 businesses globally. Funding Circle's unique model connects established small businesses directly with institutional investors, including banks, asset management firms, insurance companies, and government entities, creating a streamlined funding process that benefits both borrowers and investors.

Funding Circle focuses exclusively on term loans ranging from $25,000 to $500,000 with repayment periods between six months and seven years. Interest rates typically range from 4.99% to 24.99% depending on the borrower's creditworthiness, with origination fees between 3.49% and 6.99%. What distinguishes Funding Circle from many online lenders is their focus on established small businesses rather than startups or very early-stage ventures. They typically require businesses to have been operational for at least two years with a minimum annual revenue of $200,000, making their offerings most suitable for growth-stage companies with a proven track record.

The application process is straightforward and primarily online, with decisions often available within 24 hours and funding possible within three days. Funding Circle assigns each borrower a dedicated account manager who provides personalized guidance throughout the loan process, combining the efficiency of their digital platform with a high-touch customer service approach. While they require a minimum credit score of 660 and have relatively strict criteria compared to some alternative lenders, Funding Circle offers more competitive rates and terms than many online business lenders. Their transparent fee structure, absence of prepayment penalties, and fixed monthly payments make them an attractive option for established small businesses seeking growth capital, equipment financing, debt refinancing, or working capital.