The sooner you repay, the more you’ll save
Overpay any time for no fee with our shorter term business loans. You could shorten your loan term and reduce the total interest paid.
6 or 12-month terms
No fee to take the loan if you apply directly
Only pay for the time you borrow
Overpay or settle early for no fee
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Your overpayment questions answered for shorter term business loans:
Can I make overpayments on my loan?
Yes, you can make an overpayment (more than your contractual monthly amount) on any Funding Circle business loan, or settle your loan early in full with no fee.
If your loan has a term of up to 12 months (referred to in your contract as a ‘Flexible Loan’), interest accrues only on the remaining balance. So, when you overpay, you’ll shorten your loan term and reduce the total interest paid. This means you could pay off your loan faster.
If you make overpayments on a loan with a longer term of 24 months or more (referred to in your contract as a ‘Funding Circle Business Loan’), your overpayments will reduce your future repayment amounts but not affect the outstanding loan term. You’ll pay less over the same number of fixed repayments.
The only loans we’re unable to offer overpayments on are Bounce Back Loans (BBLS) and a small number of loans from 2019. You can still settle these loans early in full, for no fee.
Can I settle my business loan early?
Yes! You can settle your business loan early at any time for no fee.
Is there a minimum overpayment amount?
You can overpay any amount on your shorter term business loan.
Can I overpay using a bank transfer?
Yes, however, for any overpayments below £50,000, it’s typically quicker and simpler to pay online using your Funding Circle account. Any transfers or payments we receive without notice will be returned to you.
Can I overpay if I’m in arrears?
Yes, any overpayment you choose to make includes your arrears and will clear the outstanding amount.
Do I still need to make my contractual monthly repayment if I choose to make an overpayment?
Yes, you’ll still need to cover your contractual monthly amount, along with any overpayments you choose to make. For example, if your monthly repayment is due on the 25th day of the month and you make an overpayment on the 20th day of the month, you’ll still be required to make your contractual monthly repayment in full on the 25th day of the month.
How do overpayments work?
1
If you choose to overpay by more than £50,000, you can do this via bank transfer. For any overpayments below £50,000, it’s typically quicker and simpler to pay online using your Funding Circle account. Please call our team to arrange an overpayment, and our team will walk you through the process.
2
When we receive your funds, we’ll first apply them to any interest due and adjust the principal balance. We’ll keep your monthly payment the same which means you’ll repay your loan faster.
3
Your monthly repayments will stay the same moving forward but, if your overpayment is high enough, your loan term will be reduced - helping you save more.
4
There’s nothing more for you to do, but you can overpay again any time that suits you.