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Funding Circle vs LendingClub
With all the difficulties in today's economy, many people are choosing to open their own business instead of working for a traditional employer. Whether you're just starting your business, expanding your already-established business, or even hanging out a shingle as an online company, it's likely that at some point you'll need a business loan to successfully meet your customer's needs and your business goals.
In the past, small business owners relied heavily on traditional brick-and-mortar banks in order to finance their business loans. Often that meant that borrowers had to rely on their own reputation and relationship with their local bank. Getting the lowest possible interest rate was also more challenging, since there were few lending options from which to choose.
Funding Circle is a great choice among peer-to-peer lending companies. Its cofounders created the company as small business owners themselves, who were frustrated with their attempts to access financial assistance to grow their business even when their company was thriving. Funding Circle was designed to be a better solution for American small business owners, although their customers come from not just the US but also the UK, Germany, Spain, and the Netherlands. More than 15,000 loans have been funded through Funding Circle since 2010, with a total of more than $2 billion loaned.
One thing that makes Funding Circle stand out among providers of business loans is their transparency throughout the entire loan process. While some companies make it difficult to determine interest rates and fees without reading the fine print, Funding Circle clearly lists every possible cost on their Rates and Fees page:
Not only are Funding Circle's costs and fees readily available, they are extremely competitive within the business loans market. Funding Circle loans range from $25,000 to $500,000, considerably more than many of the lenders in our review.
We were also impressed by Funding Circle's A+ rating with the Better Business Bureau, as an accredited business since 2013.
In order to qualify for a loan with Funding Circle, borrowers must meet several criteria. For loans under $300,000, applicants must provide documentation of the two most recent year's business tax returns, the most recent year of their personal tax return, and the six most recent months' business bank statements, For loans over $300,000, applicants must also submit a year-to-date income statement and balance sheet, and an Outstanding Business Loans & Credit Worksheet available from Funding Circle upon request.
Those documents will be requested after the borrower has completed the short online application form and received a phone call from one of Funding Circle's specialists. They will typically call within two hours of submitting the online application. Once the borrower's information is verified and the loan is approved, funds are available within 5-10 days.
We were also impressed by Funding Circle's Resource Center, full of blog posts, videos, and other sources of information to help small businesses with their efforts to grow and succeed. The entire site is clean and easy to navigate, inspiring confidence in Funding Circle's ability to genuinely provide borrowers with an all-around excellent experience.
Because of their transparency with respect to interest rates and fees, their excellent rating with the BBB, and their deep commitment to helping small business owners get the funding to grow their businesses, we give Funding Circle very high marks and consider them an excellent choice for business owners in need of some extra funding.
LendingClub is known as a peer-to-peer lending company. They match borrowers looking for loans between $5,000 to $300,000 with offers from several different lenders. LendingClub has one of the lowest rates available for business loans, starting at 6.95% and going up to 35.89%. LendingClub has an A rating with the Better Business Bureau and has helped facilitate more than $16 billion in loans.
LendingClub has several requirements for those wishing to take out a business loan:
As with most lenders, the best LendingClub business loan rates are available to those with excellent credit and an established business history.
Applying for a loan is simple:
The size of your loan and your business history can have an effect on the turnaround time of your loan, but many customers receive their loans within a week or less. LendingClub's Client Advisors are also available Monday through Friday from 6am-5pm Pacific Time, to answer any questions you may have about the lending process. Your loan request will be listed on the LendingClub website for up to two weeks, or until lenders are willing to fully fund your request.
Taking out a business loan typically comes with fees beyond the interest paid on the loan itself. At LendingClub you should expect to pay an origination fee from 1% to 6% of the loan amount, depending on your loan and loan terms. For example, if your business loan is $100,000, your origination fee would be somewhere between $990 and $6,990.
If you need a business loan to grow your company, LendingClub offers highly competitive rates and an uncomplicated application process, backed by years of successful lending to numerous businesses around the country.
Fortunately, business owners today can choose among many lenders to find the best terms and interest rates available. In addition to the old local options, small business borrowers now have much more and better choices through various lenders on the Internet that specialize in small business loans.
There are many factors that you should consider before selecting a lender for your business loan. Some of these include:
TopConsumerReviews.com has reviewed and ranked the best Business Loan programs available today. We hope this information helps you find the best loan for your small business at an affordable rate!
Business Loans In The News
BEIJING/SINGAPORE, April 25 (Reuters) - Chinese banks have extended more loans at lower interest rates to small firms in the first quarter, heeding Beijing's call to support the economy, banking ...
Published: Thu, 25 Apr 2019 00:18:00 GMT
It is not unusual for a business to need a loan. It does not matter the size or time that it has been in operation. Companies ask for loans every other day. Managing all costs in business may not ...
Published: Tue, 23 Apr 2019 06:24:00 GMT
LendingClub is shutting down its 5-year-old business lending arm, which was dwarfed by its flagship consumer loan unit, and will refer prospective commercial borrowers to two partner companies. Under ...
Published: Tue, 23 Apr 2019 11:17:00 GMT
Shetland Islands Council has approved a loan of £300,000 to building firm BA Builders to allow for new homes to be constructed in rural areas. The loan is designed to create 13 modern and energy ...
Published: Thu, 25 Apr 2019 01:17:00 GMT
ALBANY - The U.S. Small Business Administration has Economic Injury Disaster Loans available to several New York counties, including Livingston and Wyoming, as a result of excessive precipitation that ...
Published: Thu, 25 Apr 2019 02:55:00 GMT
But FHLBs have been evolving. For instance, despite the "home" in the banks' name, members can now borrow from their regional FHLB to support loans for small business or community development and ...
Published: Thu, 25 Apr 2019 03:10:00 GMT
As Business Insider's Hillary Hoffower reported ... sooner than millennials did while trudging through a sluggish economy. Gen Z still has student loan debt, but it doesn't seem to be a major ...
Published: Wed, 24 Apr 2019 08:59:00 GMT
WMC Mortgage sought bankruptcy protection to resolve remaining legal liabilities over defective loans it originated before the 2008 financial crisis. General Electric has put its defunct subprime ...
Published: Wed, 24 Apr 2019 05:33:00 GMT
London-based Iwoca was founded in 2011 and offers online loans of up to £200,000 to small ... to set up a £775m fund to boost competition in business banking in the same year.
Published: Thu, 25 Apr 2019 00:21:00 GMT
The New Hampshire Business Finance Authority has expanded its partnership with the Regional Economic Development Center, adding an additional $1 million available for small business loans, the BFA ...
Published: Mon, 22 Apr 2019 07:14:00 GMT
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