See how we compare
We believe small businesses deserve a transparent borrowing experience. Here’s how our marketplace stacks up against other lenders.
Our simple and easy application
Your time is valuable. Here’s how Funding Circle’s online application stacks up against other business lenders.
| Merchant cash advance (MCA) & factoring | SBA and bank loans | Funding Circle | |
|---|---|---|---|
| Application time | ~10 minutes | Hours | < 10 minutes |
| Approval time | Varies | Months | As little as 24 hours |
| Point of contact | Series of salespeople | General phone line | Your own personal account manager |
| Who makes the decision | Computer algorithm | Corporate committee | Personal underwriter |
| Ease of approval | Suspiciously easy | Frustratingly difficult | We want to fund you |
Our affordable and flexible loan terms
Interest rates can fluctuate considerably between lenders and the rate you receive depends on a number of factors – from the type of financing and term length, to your credit score and whether the loan is secured by assets.
| Merchant cash advance (MCA) & factoring | SBA and bank loans | Funding Circle | |
|---|---|---|---|
| Size | < $100K | Usually > $100K | < $25K-$500K |
| Term length | < 6 months | < 7 years | 6 months - 5 years | Annual interest rate | Very high Often with daily payments | Low rates If your business qualifies | As low as 4.99% Fixed, monthly payments |
| Fees | Varies and unpredictable | Depends | Clear, onetime fee: 0.99% - 6.99% of loan |
| Prepayment penalty | Sometimes | Sometimes | Never |
| Takes a cut of your sales | Yes, every day | No | No, it’s your money |
The bottom line
A good lender will always be willing to help you calculate an APR (all costs for one year in a single equivalent interest rate), so that you can accurately compare the true cost of different financing options.
A merchant cash advance (MCA) is generally designed as an option for businesses that need a small injection of money, quickly, for a very short period of time. Almost any business can get approved in just a few hours, but you could potentially pay for that speed and superficial underwriting process with dangerously high interest rates. Monthly versus daily payments can dramatically change the total cost of your loan, and sometimes make shorter-term cash advance rates appear less expensive than a term loan at first glance.
An SBA loan or traditional bank loan generally offer some of the lowest interest rates available. But unless you have an exemplary personal and business credit history, it can be difficult to get approved. Because their application process is infamously slow and impersonal, you can spend months jumping through hoops and waiting around only to find you’ve been denied.
A Funding Circle term loan was designed by small business owners for small businesses. It takes just a few minutes to apply and you can get a decision in as little as 24 hours. Our most creditworthy applicants receive rates that are competitive with traditional bank loans, and because we believe in an honest, transparent borrowing experience you’ll know exactly how much you have to repay each month with no hidden fees or prepayment penalties.