Your MBDA partner resource guide
As an official partner of the Minority Business Development Agency (MBDA), Funding Circle’s small business experts deliver a range of original financial education programs to minority business owners through the MBDA’s national business center network. Funding Circle and the MBDA focus on access to alternative capital, business strategy and every business owner’s right to fair and transparent financing, as outlined in the Small Business Borrower’s Bill of Rights.
Funding Circle also provides support to MBDA center managers to ensure that their clients have opportunities for affordable funding. Funding Circle provides a simple online application, comprehensive feedback and reporting on client application processes, and educational materials on business finance.
If you have any questions or would like to sign your member center up with Funding Circle, please contact Nick Rockwell at email@example.com.
About Funding Circle
Lending to great small businesses is what we do, and we think your clients deserve a better borrowing experience than banks and other lenders can provide them. After all, successful small businesses like your clients are what keep our economy growing and communities thriving! That’s why we’ve built something different. We’re a marketplace that connects successful businesses looking to borrow, with people and institutions who want to lend. By cutting the costs and complexity your clients can get an affordable loan for their business from Funding Circle in under 10 days. Over 15,000 small businesses have borrowed $2 billion through our global marketplace since 2010.
Over the past few decades, and especially since the financial crisis, banks have largely pulled out of small business lending due to tighter regulations, high origination costs and archaic credit models that make it difficult to underwrite small business loans profitably. This has left millions of small business owners without access to the financing they need to grow. That’s where we come in: We believe there’s a smarter way to get a loan! We offer secured term loans to help you grow your clients’ businesses in an affordable, sustainable way.
Who we lend to
Our small business borrowers are as diverse as the country we live in! We lend to businesses across all industries, including food and restaurant, medical care, professional services and IT, retail and e-commerce, agriculture, construction, logistics and more. Established businesses with at least $150,000 in annual revenues are eligible to apply.
Meet Dorika Beckett
An accomplished entrepreneur and Harvard MBA, Dorika’s passion has always been building great organizations that impact people and society for the better. After caring for her mother-in-law in her last year of life, Dorika decided that there had to be a better way to help people through the aging process. In 2013, she launched LiveWell Home Care to offer patients an innovative way to maintain a dignified and self-sufficient lifestyle in their own homes.
In early 2014, customer demand was growing so rapidly that she needed to hire more staff – immediately. An experienced entrepreneur, Dorika already knew how long the traditional bank or SBA loan processes would take, and why it wasn’t the right solution for her: “I needed answers that month – that week! The traditional bank process is not aligned with where the world is going.”
Ten days later, she had a $150,000 secured small business loan from Funding Circle. “I used to show up on clients’ doorsteps to collect checks because our cash flow was so tight. Thanks to Funding Circle, I have never missed payroll and am able to pay my employees well. For a small business owner, that is huge. That is powerful.”
Since then, Dorika has seen her revenue more than double and expects to quadruple her sales by the end of 2015. “My goal isn’t to stay a small business. My goal is to be a billion-dollar business. Funding Circle was the spark we needed to grow.”
What we look for
We don’t believe that your clients’ FICO score is the defining factor of their credit worthiness. No single metric can define the potential success of their business! We look at the overall picture—their personal assets, as well as their overall business profile—to see whether our products are a good fit for their financial needs. Learn more about the way we evaluate applications in our 5 Cs of Credit guide.
5 reasons the MBDA partnered with Funding Circle
1. One to five year terms with rates as low as 5.49 percent.
2. Loans up to $500,000 with simple, monthly repayments.
3. No hidden fees or prepayment penalties—we promise.
4. Simple online application, so your client can skip the paperwork at the bank.
5. A dedicated account manager who’s passionate about your client’s business. We look at the whole picture of their business—not just their credit score.
About our loans
We take a holistic approach to understanding small business creditworthiness. This means your client’s interest rate is determined based on a number of factors, from their realtime cash flow and credit scores to online customer reviews. Interest rates remain fixed over the life of their loan, and are as low as 5.49 percent.
Unlike other lenders, we only charge a one-time 0.99% to 6.99% origination fee. Just like your client’s interest rate, their origination fee will be determined during our underwriting process and is based on the strength of their credit profile.
Transparency is one of our core values. Unlike merchant cash advance lenders, our rates are affordable and there are absolutely no hidden fees—ever. Also, if your client wants to pay back your loan early, we encourage them to do so! There are zero prepayment penalties.
Learn more about our rates and fees here.
Terms and application process
We offer up to $500,000 over one to five years with an easy, monthly payment debited directly from your client’s bank account. Our innovative technology offers your clients a fast and easy application process and make decisions faster than a bank. You can check their eligibility online in under 60 seconds, and they will hear from their own dedicated account manager within one hour! Your client can expect to receive a decision on their loan application within 2-3 business days, and get funding in their pocket within 10 days if their application is approved. See how our terms and application process compare to other lenders here.
Our technology is cutting-edge, but there’s no substitute for genuine person-to-person trust and conversation. That’s why our expertly trained account managers provide white glove service to each and every customer, and our underwriters look at all aspects of your client’s business. After reviewing their application, our underwriters often schedule some time to chat with your client on the phone to get to know their business better and discuss their aspirations.
Globally, over 90 percent of our customers on Trustpilot give us a five-star rating!
Small Business Borrower’s Bill of Rights
At Funding Circle, we believe small businesses deserve better. They are the growth engine of our economy and deserve access to fast and affordable financing. This is why we built Funding Circle—to provide small business owners with an efficient and transparent way to fulfill their growing capital needs, and to understand the total cost of their loan.
Our mission is to build a better financial world, and we are proud to partner with industry leaders to set the first-ever gold standard for responsible business lending.
Learn more about the ways we are standing up for the financing rights of of your clients here.
Questions? Get in touch.
Brian Shields, Senior Partnerships Manager