Has your business outgrown its roots and now you’re looking for a way to spread out to greener pastures, but the banks won’t allow you to see your plans come into fruition? A loan from small business lender Funding Circle might just be the solution you were looking for.
It’s just not easy getting a much needed small business loan when you need it these days. and it has unfortunately become the reality of today’s economic climate for many business owners. Fortunately however, this gap created by unserved or underserved parts of the country has sprung new opportunities from alternative lending companies like Funding Circle.
1. Business-friendly Loans
As an online business lender, Funding Circle provides a bridge for successful small business owners who need a loan to help grow their business, but for whatever reason cannot get one by their bank.
Medium Term Loan
6 - 23%
- Minimum credit score : 620
- Minimum time in business : 2 years
- Business bank statements (last 6 months)
- Business tax returns (last 2 years)
- Personal tax returns (most recent year)
- Business debt worksheet
- No prepayment penalty
- BBB accredited
The typical Funding Circle loan is around $100,000 and is expected to be repaid over the course of three years, which isn’t a statistic that any bank would turn their noses up at, however, because Funding Circle is capable of processing applications quicker and more efficiently, they are able to reach clients who are deemed unworthy to banks who can take months to determine if it is the right investment for them.
Funding Circle is a bridge for small business owners who need a loan to help grow their business, but for whatever reason cannot get one by their bank.
Funding Circle flips the script by taking all of your information online and, if you came prepared to fill out all the necessary financial forms, can be done in as little as ten minutes. Once you’ve finished your application, you can expect funds to clear is a little as 10 business days.
Contrast that with the months it, in some cases, takes to apply for a SBA advance, which involves an audit procedure that some entrepreneurs find unending and frustrating enough to not pursue one.
It would be hard to beat the low financing costs on SBA advances, which are ordinarily in the 4-8% range. Be that as it may, Funding Circle’s terms might be a sensible option; its yearly rate rates range somewhere around 8% and 30%.
Although business large and small regularly utilize Funding Circle financing for development, you could likewise get a one-year advance to manage a transient need, for example, a transitory income crunch. Here’s some shocking news for those who have experience with alternative financing options: You’re never punished for prepayment.
2. Ideal Loan Candidates
One potential barrier for entry on getting approved by Funding Circle is their high bar (in comparison to other alternative lenders online) for established businesses. You’re going to want to have either a long history of being profitable as a business or a middle aged business, but with a sizeable annual revenue. For an idea of what you’d be aiming for: their average business client brings in about two million in annual revenues and has around a decade in experience.
This proven track record extends to the minimum FICO requirement of 620 to qualify, while you could get away with rather bad credit scores with other online lender. The tradeoff is having to pay manageable APRs and less constricting terms, like weekly or daily repayment schedules that can drain the cash flow of your business and defeat the whole purpose of the loan in the first place. Compare Funding Circle with others and you’ll see why they receive such high praise by online reviewers.
3. Documents you will need to apply
- Bank statements: Last 6 months.
- Business tax returns: Last 2 years.
- Personal tax returns: Most recent year for every person owning 20% or more of the business .
- Business debt schedule: Showing all current business debt. (Download template)