Funding Circle connects business owners with a range of financing products, including SBA loans, term loans, merchant cash advances, working capital loans lines of credit and invoice factoring.
SBA Loans
Funding Circle is an official SBA lending partner and helps business owners apply for and receive SBA 7(a) loans between $25,000 and $500,000. Loans are available for a 10-year term at a flat 6% interest rate (prime plus 2.75%). Business owners can see how much they can borrow through the SBA using Funding Circle’s loan calculator.
In addition to meeting the minimum credit score and years in operation, Funding Circle requires of all loan recipients, SBA loan applications must also be in an SBA-eligible industry and have a minimum annual revenue of $400,000 and no current federal tax liens.
Disbursem*nt of SBA 7(a) loan funds generally takes about 14 days after an applicant finishes their application.
Term Loans
Business term loans are available for between $5,000 and $500,000 with repayment terms from three months up to 10 years. Rates range from 3.9% to 12.1% per year depending on several factors. The application process can take as little as six minutes, and prospective borrowers get a decision in as few as 24 hours after completing an application.
Merchant Cash Advance
Business owners can also apply for $5,000 to $400,000 merchant cash advances. This form of business financing lets merchants borrow funds that are secured by their future sales. Lending periods are available from three months to 18 months, and factor rates start at 1.15, with the most competitive rates reserved for applicants with excellent credit and financial strength. Unlike interest rates, a factor rate of 1.15 means the borrower repays $115 for every $100 borrowed.
Working Capital Loans
Funding Circle’s working capital loans range from $25,100 to $400,000 with repayment terms between six and 18 months and factor rates starting at 1.15. Loan funds can be used to cover upfront business costs, prepare for a busy retail season or grow operations.
Lines of Credit
Business lines of credit are available from $6,000 to $100,000 with annual percentage rates (APRs) starting at 10.99%. Borrowers only pay interest on the funds they draw against the line, making it a good option for purchasing inventory or covering other operating expenses over time. Funding Circle charges a $20 monthly maintenance fee to cover servicing and processing, plus draw fees between 1.6% and 2.5% each time a borrower accesses their credit line.
Invoice Factoring
Funding Circle also offers invoice factoring, which involves a business selling its outstanding invoices at a discount in exchange for cash. Funds are available between $6,000 and $100,000, and businesses can receive 85% to 90% of the invoice amount upfront. Rates start at 0.25% per week.
