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Updated: August 15th, 2019
Traditionally, small businesses were able to rely upon capital from business lenders like traditional banks and financial institutions. Then the Great Recession hit.
Since then, banks have dramatically reduced their lending to small businesses. Why? Because the “small” part of your small business makes it expensive to underwrite loans in a way that’s profitable for such large institutions. In this void, many merchant cash advances and payday lenders took advantage of entrepreneurs’ need for credit by charging short-term rates up to 300 percent (yikes!).
We knew there had to be a better way, so Funding Circle was founded upon the belief that small business deserved better. We believe that small businesses are critical job creators and the lifeblood of our economy, and a term loan is one of the primary ways that businesses are able to meet their financial needs and grow.
We’re different from other lenders because we’re passionately – and exclusively – committed to building a better financial world for businesses like yours. We don’t just want to help fund you – we want to help you thrive. Here’s how we accomplish that:
Business owners like you can’t wait weeks or months to hear back if their business was approved for a loan – or not. Opportunities for growth don’t last forever, so we bake a sense of urgency into everything we do. We know you require a fast turnaround time, so we ask for all of your vital documents upfront. Once you’ve submitted your documents, we can provide a credit decision in as little as 24 hours!
Unlike merchant cash advance lenders, our rates are affordable and there are absolutely no hidden fees – ever. We pair every business owner with an account manager to walk you through our entire process and answer all of your questions in a timely manner. Once a loan is funded, we provide amortization schedules (a table detailing each periodic payment) so there aren’t any surprise payments down the road. Also, if you want to pay your loan back early, go ahead! There are zero prepayment penalties.
We don’t believe that your FICO score is the be-all and end-all in determining whether you are creditworthy. No single metric can define the potential success of your business! We look at the overall picture: your personal assets, as well as your overall business profile, to see whether our products are a good fit for your financial needs. To learn more about how our underwriters evaluate loan applications, check out the 5 Cs of credit every business owner should know.
Our technology is cutting-edge, but there’s no substitute for genuine person-to-person trust and conversation. That’s why our account managers provide white glove service to each and every customer, and our underwriters look at all aspects of your business. Once an application has been reviewed, we’ll schedule some time to chat with you on the phone to get to know your business better and discuss your aspirations.
Small business lending is literally all we do, because we believe in entrepreneurs like you. It is our sincere mission to continually improve our process to deliver the best possible lending experience for your business.