With set monthly payments and no prepayment penalty, our Business Term Loan was designed to be as flexible as possible, meaning your funds can be used for almost any business purpose. Applying has no effect on your credit score2, and repaying your loan on time even helps your business build good credit!
You typically need moderately good credit to qualify for a Funding Circle Business Term Loan. But if your credit’s less than stellar, don’t worry - we have other financing options available, including a Business Line of Credit!Learn more
With one application for three top-rate financing programs, Funding Circle's streamlined system makes applying quick and easy!
Are you ready to discover the right financing option for your business?
Our streamlined process makes it easy to discover the right financing options for your business at no cost or obligation, with no effect to your personal credit score.2
Once you’ve uploaded your documents, your Account Manager will reach out directly to discuss your financing needs and funding options.
Once you’re approved for and accept our offer, we’ll finalize the processing of your loan and deposit the money directly into your bank account.3
One of the biggest benefits of our Business Term Loan is its versatility – once you’re approved, you can use your funds for almost any business purpose!
Offset costs during the busy season
Purchase more inventory
Cover your business’ payroll
Finance new growth and expansion
After doing all the research, we found Funding Circle to be the perfect solution for us. They had the best reviews, the best customer service; from the minute we started, it was absolutely perfect.
Chad Scott, Ultimate Team Products
What is a business term loan?
A business term loan is perhaps the most straightforward type of financing that small business owners can access. Approved borrowers receive a lump sum upfront from their lender and repay the loan on a predetermined schedule.
What can I use a term loan for?
You can use a term loan for almost any business purpose. Designed with flexibility in mind, Funding Circle’s Business Term Loan can help you meet all sorts of short- and long-term business goals, including hiring more staff, buying equipment, covering payroll, and renovating or expanding an existing location.
What kind of businesses are best suited for term loans?
Term loans can be a good choice for established businesses with good credit history and a few years of operating history under their belt. For those businesses looking to borrow funds on shorter timelines, term loans can also be a faster alternative to waiting for the longer loan application processes of a bank or the Small Business Administration (SBA).
Does applying for a business term loan require a hard pull on my credit?
In most cases, no. Typically, our application only requires a soft pull on your credit, meaning that your overall credit score won’t be affected by applying.2
Is there an application fee?
Funding Circle (and our network of lending partners) do not charge an application fee - applying comes at no cost and obligation to you. However, do be aware that this does not include your loan’s final closing costs.
Do I have to provide collateral?
Some term loans do require collateral, such as personal or business assets, based on your lending partner and the duration of your loan. While it is always best to check with your Account Manager, most long-term loans (those between 3 and 5 years), which can be used for a major investment such as an expansion, may require some type of collateral.
How does repayment work?
Term loans are repaid with fixed payments over a fixed period of time (the “term”) - anywhere from six (6) months to five (5) years - in bi-weekly or monthly installments.
Can I make prepayments on my balance? Is there a prepayment penalty?
Funding Circle proudly allows prepayment on your business term loan, with no prepayment penalty whatsoever.
What are the pros and cons of a term loan?
With fixed payments on a set repayment schedule, our term loan makes managing your monthly budget easy. Its flexibility means you can use your business funds your way, with no prepayment penalty.
However, term loans are typically a better fit for more established businesses with good credit that have been in operation for a few years. If you’re a start-up, or are still working on building your business credit, a term loan may not be the best option at this time for your business.
What is the APR for Funding Circle’s business term loan?
The APR for our business term loan will vary depending on creditworthiness and the term length selected, meaning that there’s no set rate for every customer. Apply today to find out what rate your business may be eligible for!
Everything you wanted to know about term loans: what you can use them for, how to evaluate term loan offers, and more in this comprehensive overview.
The best way to compare different financing offers is via their annual percentage rates (APRs). Learn how to calculate APRs and make informed decisions.
Term loans, SBA loans, lines of credit: your comprehensive guide to the most popular types of small business financing is here.