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Funding Circle Lending Review

Funding Circle Small Business Loans: 2023 Review

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Susan Guillory
Susan GuilloryUpdated January 21, 2023

Overview of Funding Circle

Since 2010, Funding Circle has raised billions of dollars from investors and helped more than 100,000 business owners do more in their companies. It’s a win-win: investors diversify their portfolios with potential positive returns, and businesses get the funds they need to create jobs, grow, and help their local economies.
Pros and cons


  • Offers both term loans and SBA loans
  • In most cases, personal credit is not impacted when applying for a term loan. However, business credit may be impacted.
  • Decision on application for term loans are made within 24 hours; funds deposited within 5 days (subject to credit approval)


  • Minimum FICO® Score of 660 may be challenging for some businesses to qualify
  • Funding Circle charges a 4.49% to 8.49% origination fee on top of your interest rate
  • Requires personal guarantee

Funding Circle Small Business Loan Terms, Rates, and Fees

Loan amounts: $25k - $500k for term loans, $50k - $500k+ for SBA 7(a) loansAPR range: Typically 7% - 30% fixed or variable interest rate for term loans, 10.25% - 12.25% for SBA 7(a) loansOrigination fee: 4.49% to 8.49%Minimum credit score: 660 FICO ScoreTime to funding: 1– 5 daysCo-borrower needed: NoAbove information accurate as of Jan. 20, 2023.

Other Lenders

When exploring your financing options, it’s a good idea to look at multiple lenders to determine which has the products and rates that work for your business needs.

What Types of Loans Does Funding Circle Offer?

Funding Circle offers two products: business term loans and Small Business Administration (SBA) loans.With term small business loans through Funding Circle, eligible borrowers can receive $25,000 to $500,000, with a six-month to seven-year repayment period on term loans. Those who have been in business for at least two years and are seeking funds they can repay quickly may consider a term loan.The SBA loans have longer terms, up to 10 years, and borrowers can receive up to $500k. SBA loans can take one to two months to complete the application and receive funding.

Important to Keep in Mind

Lenders like Funding Circle charge fees in addition to the interest rate on your loan, so it’s important to understand and budget for these additional expenses. Funding Circle charges an origination fee of between 4.49% to 8.49%.While online reviews are mixed, complaints seem to focus around Funding Circle problems around customer service not being very helpful or responsive; these may be worth considering if you decide to apply for a loan.

Applying for a Funding Circle Small Business Loan

According to their website, applying for a Funding Circle business term loan takes just six minutes. Your personal credit score may not be impacted by your application, but your business credit score (if you have one) may be impacted by your application.

Funding Circle Requirements

Funding Circle requirements for a business term loan are fairly simple and straightforward. Expect to be asked for basic information about you and your business, as well as:
  • Business tax ID
  • Names of shareholders or owners with 20% (or more) ownership
  • Social Security number of business owner(s)
  • Driver’s license number and state of issue
  • 2 most recent years of business tax returns
  • 1 most recent year of personal tax returns for each business owner
  • 6 most recent months of bank statements
For an SBA loan, you may be asked to provide:
  • 3 years of business and personal tax returns
  • Current balance sheet and profit & loss statement
  • Year-to-date balance sheet
  • Business debt schedule
  • Personal financial statement

Your Personal Account Manager

Within one hour of applying for a loan, you should hear from your personal account manager who will get more information about your business, and they may also request further documentation to process your application. Generally, loan terms will also be discussed at this point.

Speedy Approval

You may receive word on whether your application was approved or denied within 24 hours for a term loan.Once you review and accept your term loan offer, they claim you will receive your funds within five days. You’ll be given your repayment terms, and you can set up your monthly payments automatically if you choose. You will not be charged a fee for early repayment.Note that an SBA loan can take one to two months to complete the application and receive funding. In addition, Funding Circle eligibility requirements include no bankruptcies over the last seven years and you may not be located in Nevada (due to state commercial lending regulations).

The Bottom Line

If you’re looking for fast turnaround on a loan and have the required credit score to qualify, Funding Circle could be one of the speediest options for a business loan that you will find. Keep in mind that, if you run a startup that is younger than two years, or don’t have good or excellent credit, you may not qualify for a loan from Funding Circle.Looking for more small business loan options? With Lantern’s help, you can spend less time searching for financing and more time growing your business.Find small business loan offers with Lantern.

Frequently Asked Questions

Is Funding Circle a legitimate lender?
Is Funding Circle a bank?
Does Funding Circle offer startup business loans?
How do Funding Circle loans work?

About the Author

Susan Guillory
Susan GuillorySu Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.