Funding Circle Review

Pros

• High borrowing amounts
• Monthly repayments
• No prepayment penalty
• Few additional fees

Cons

• Borrower qualifications might be hard to meet
• Financing isn’t available in some states
• Not available to businesses in some industries

What Is Funding Circle?

Funding Circle offers installment loans (commonly referred to as term loans) and revolving lines of credit to established businesses. It is also an approved SBA lender.

Funding Circle was acquired by iBusiness Funding in 2024. At the time of this writing, Funding Circle is still operating as usual. However, the company has noted that it will be transitioning to iBusiness Funding in the near future. The primary change that will affect borrowers is that more funding options will be available. We will update this review as more information is disclosed.

Services Offered By Funding Circle

This review focuses specifically on the US branch of Funding Circle.

Funding Circle offers installment loans. Also called “term loans,” installment loans deliver a lump sum of cash upfront in exchange for a promise to repay the amount borrowed plus accumulated interest or a flat fee. The loan is repaid in regular, equal installments.

Funding Circle also offers lines of credit. Rather than granting a lump sum, a line of credit provides a credit limit that can be drawn upon as needed. Interest is only charged on the amount used. In the case of revolving lines of credit, as you pay off your balance, your credit becomes available to use again for the life of the line of credit.

Funding Circle is also an approved SBA 7(a) loan lender. Read our guide to SBA 7(a) loan guide to terms and eligibility to learn more about these long-term, low-cost loans.

Funding Circle’s offerings cover most of the borrowing needs that small businesses may have, with borrowing limits that should cover typical expenses. Repayment is painless, but if you like managing your debts on your phone, just be aware that Funding Circle does not offer a mobile app. Overall, we rate Funding Circle’s services 4 out of 5 stars.

Funding Circle Borrower Requirements

These are the qualifications you must meet to qualify for a Funding Circle loan:

Also, you should not have any bankruptcies over the last seven years or any tax liens in the last ten years.

Funding Circle does not offer loans to businesses based in Nevada, citing the state’s lending regulations. Funding Circle also enforces a prohibited industry list, which includes:

• Speculative real estate
• Nonprofit organizations
• Weapons manufacturers
• Gambling businesses
• Marijuana dispensaries
• Pornography

You can use Funding Circle’s loans for a variety of purposes. The one restriction the company specifies is that the loan cannot be used to settle personal debt.

Funding Circle’s strict time in business requirement puts it into direct competition with traditional lenders like banks even if its credit score and revenue requirements are fairly lenient. We rate Funding Circle’s eligibility requirements 3.8/5.

Funding Circle Rates & Fees

Funding Circle’s rates are quite good for an online lender, but be aware that its origination fees can get a little out of control toward the high end of its range. Make sure you know how much money Funding Circle is taking out of your lump sum before you accept it. All factors considered, we give Funding Circle a 4.6/5 for rates and fees.

Note that little information is given about Funding Circle’s SBA 7(a) loans, which is why we haven’t included them in this breakdown.

Business Term Loans

These are the terms and fees for Funding Circle’s business term loans:

Your interest rate is determined by your creditworthiness, the strength of your business, and other factors, such as your business type, how long you’ve been in business, and your real-time cash flow. Your interest rate is also affected by the loan’s term length. It is, however, a fixed interest rate, so once it’s set, that will be your interest rate for the life of the loan.

Because Funding Circle offers installment loans, you can save money on interest costs by paying off your loan early. There are no prepayment penalties. Payments are made monthly and begin the day you accept the loan (not the day you receive the funds). You can use the information on Funding Circle’s support page and our loan calculator to get an idea of how much your monthly payments might be.

Apart from an origination fee and interest, the only other fees you might be charged are for insufficient funds or late payments. This fee is equal to 5% of the missed payment.

Business Line Of Credit

These are the terms and fees for Funding Circle’s business lines of credit:

Businesses looking for more flexibility can apply for a line of credit through Funding Circle.

Funding Circle’s lines of credit do not have any monthly maintenance fee, but each draw will incur a fee. Interest is only charged for the amount of credit you’re currently using. As with Funding Circle’s installment loans, late payments are charged a fee equal to 5% of the missed payment.

Application Process

To apply for a Funding Circle loan, you have to complete an initial application online to see if you’re “pre-qualified” for a loan (meaning, “see if your business meets Funding Circle’s minimum qualifications for funding”). Funding Circle does a soft check of your personal credit for the initial application.

Once pre-approved, you’ll be given a quote with an estimated interest rate. A Funding Circle representative will call to discuss your quoted loan options and assist you with any questions. Next, you’ll need to provide additional documentation and information about your business. If your business is organized as a general partnership, Funding Circle will do a hard credit check at this point, which may affect your credit score. However, a hard check is not required for most applicants.

According to Funding Circle, you’ll need the following documents:

• Two years (most recent) of business tax returns
• One year (most recent) of personal tax return
• Six months (most recent) bank statements
• Business debt information

Once you’ve had your consultation and submitted all the appropriate documents, your application will go through underwriting. Within a day, Funding Circle will send you an offer, including your interest rate and origination fee. You’ll receive your funds within a few days if you accept the offer. According to Funding Circle, the entire application process usually takes five days or less.

All-in-all, Funding Circle’s application process is painless but not as quick as some of its competitors in the online lending market, which garners a 4.3/5 rating in this category.

Sales & Advertising Transparency

Funding Circle has a well-designed website and is upfront with information about its lending services. You can learn pretty much everything you need to know on the Funding Circle website, which also features handy tools such as calculators and borrowing guides. You may have to click around the site a bit to find everything you’re looking for, though.

The company is also a signatory of the Borrower’s Bill of Rights, in which companies promise to be fair and transparent about lending practices. While there’s wide variation in borrowing rates, you should have a pretty good idea of what you’re walking into.

Funding Circle’s sales and advertising is, overall, quite good, but the company could still do a better job of conveying that information to customers by placing that information in one place. Funding Circle’s social media is active but with limited interaction with customers. We give Funding Circle a 4.8/5 for transparency.

Customer Service & Technical Support

Judging by customer reviews, borrowers tend to be happy with the level of support they receive from Funding Circle. There are numerous ways to get in touch, and you will have a dedicated support representative.

Additionally, the company’s website provides a lot of useful information about the lending industry and goes out of its way to define terms. We rate Funding Circle 4.5/5 for customer service.

User Reviews

Overall, customer reviews of Funding Circle are mixed, trending toward positive, with many cited issues revolving around communication during the application process. This amounts to a 3.2/5 score in our system.

Negative Reviews & Complaints

Funding Circle USA, Inc. currently has 9 reviews and one complaint closed within the last 12 months with the Better Business Bureau (BBB).

• High Interest Rates: You might pay more for Funding Circle’s services than you would for a bank loan.
• Long Application Process: Compared to other alternative lenders, Funding Circle’s application process is slower.
• Discrepancies Between Sales & Offers: A few customers reported that the rates they were offered and the rates they received didn’t match up.
• Not For New Businesses: You need to have been in business for two years to qualify for funding from Funding Circle.

It’s also worth noting that Funding Circle regularly responds to customer complaints and works hard to correct problems.

Positive Reviews & Testimonials

Funding Circle receives high praise across the board from the majority of reviewers. The company is BBB accredited and gets an A+ rating. Funding Circle currently receives 4.6 out of five stars on Trustpilot. Here’s what users love most about this service:

• Easy Application Process: Borrowers found the application straightforward and easy to complete.
• Good Customer Service: By far, this is the most common point of praise. Borrowers appreciate how friendly the representatives are and seem satisfied with the level of support given by their specific account managers.
• Quick Funds: Many borrowers like how quickly they were able to apply and receive funds, especially compared to the time it would have taken to apply for a bank loan.

Final Verdict

Funding Circle’s competitive interest rates and easy application process can be worth looking into for established businesses with a strong credit history.

The main issue with Funding Circle is that its borrower qualifications put it in close contention with bank loans. Funding Circle can still generally offer a faster (although slower than many other alternative lenders) and easier application process than a bank can, although you’re more likely to get a better rate from the latter. The decisive factor will likely be time constraints.

We give Funding Circle a total score of 4.2 out of 5 stars.

As always, we recommend considering all your options before accepting even the best small business loans to ensure you’re getting the best deal for your situation.

Business Loan & Funding Products Review Methodology

Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business loans and funding products.

When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.

The Merchant Maverick Seal of Approval 🏆

Funding Circle	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Funding Circle for yourself.

The Merchant Maverick Seal of Approval 🏆

Funding Circle	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Funding Circle for yourself.