You only need fair credit to qualify, but it’s not open to startups.
- Best for peer-to-peer loans with quality customer service.
- Look somewhere else if you need startup funding.
Product Name Funding Circle business loans Min. Amount $25,000 Max. Amount $500,000 Loan Term 6 months to 5 years Min. Credit Score 620 APR Starting at 4.99% Requirements 620+ personal credit score, 2+ years in business, for-profit business in an approved industry
How much will this loan cost me?
Funding Circle offers loans from $25,000 and $500,000 with rates starting at 4.99%. The rate includes an origination fee between 3.49% and 6.99%, which it deducts from your loan before you receive your funds.
You have between 6 months and 5 years to repay the loan. Use the calculator below to find out how much this loan might cost each month and in total interest at different rates and terms.
Business loan calculator
See how much you’ll pay
Your loan Loan amount$ Loan terms (in years) Interest rate$%
Fill out the form and click on “Calculate” to see your estimated monthly payment.
How it works
While you can qualify for this loan with a 620 credit score, you’ll need to be a well established business with strong revenue and personal credit to qualify for a 4.99% APR. Just meeting the minimum requirements usually isn’t enough to get a good deal. You’ll also need to show your business has enough consistent cash flow to afford the monthly payments on your loan, even if there’s no minimum revenue cutoff.
What do I need to qualify?
You’re eligible to apply for a business loan with Funding Circle if you meet the following criteria:
- Personal credit score of at least 620
- Business is at least two years old
- No personal bankruptcies among business owners in the past seven years
- For-profit business in an approved industry
- Not located in Nevada
What information do I need to apply?
Funding Circle asks all applicants to provide:
- Business tax returns for the past two years. If you don’t have them on hand, request copies from the IRS.
- Personal tax returns for the past year. Required for everyone who owns at least 20% of your business.
- Business bank statements for the past six months. You’ll need official copies from your bank — not home printouts.
- Signed guarantor form. Required for everyone who owns at least 20% of your business.
What industries does Funding Circle work with?
Funding Circle works with businesses in most industries, except for the following:
- Adult entertainment
- Speculative real estate
- Weapons manufacturing
What other types of financing does Funding Circle offer?
Funding Circle isn’t offering its standard business loans during the coronavirus outbreak. It offered PPP loans until the program closed on June 30, 2020. And currently it’s still only offering SBA 7(a) loans. Here’s how they work through Funding Circle.
SBA 7(a) loans
- Loan amounts: $20,000 to $5 million
- Rates: 6%
- Fees: SBA guarantee fee of 1.7% for loans up to $150,000 and 2.25% for loans over that amount. Broker and closing fees may also apply.
- Terms: 10 years
- Requirements: Over 3 years in business, at least a 680 credit score, at least $400,000 in annual revenue, no federal tax lines, more business assets than liabilities, meet SBA size standards for your industry
This government-backed loan program offers more flexibility to established businesses with loan amounts based on your business’s ability to repay. You can use the funds for any business purpose, from working capital to growing your business.
Pros and cons
Here are the benefits of choosing Funding Circle as your lender — and drawbacks that might make you want to look elsewhere.
- No minimum revenue requirements
- Accepts fair credit
- No prepayment penalties
- Strong reputation for customer service
- Relatively high origination fee
- Loans start at $25,000
- At least two years in business required