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Funding Circle vs National Business Capital

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FUNDING CIRCLE

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:

  • Origination fees range from 0.99% to 5.99%v
  • 12-month loans have interest rates from 5.49% to 23.29%
  • 24-month loans have interest rates from 7.99% to 25.79%
  • 36-month loans have interest rates from 8.99% to 26.79%
  • 48-month loans have interest rates from 9.79% to 27.79%
  • 60-month loans have interest rates from 10.49% to 21.29%
  • No prepayment fees
  • Late payment fee: 10% of the missed payment

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.

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NATIONAL BUSINESS CAPITAL

National Business Capital is a well-known source for business financing, both in terms of small business loans and other products, such as equipment financing, business lines of credit, and more. Since their start in 2012, their clients have come from nearly every industry, including Transportation, IT companies, Hospitality Services, and Construction/Contracting, regardless of their credit background. Nearly 70% of their clients were first turned down by traditional banks prior to their approval by National Business Capital, which is evidence of their strong commitment to helping businesses get the financing they need, even during times of economic instability in the nation.

One terrific feature of National Business Capital's process is that approval takes less than 24 hours. After completing a brief application that includes the business' name, approximate monthly sales, and purpose of the loan, applicants can expect contact from one of National Business Capital's Business Consultants within a day.

Unfortunately, this lender does not make it easy to determine more specific information about their lending programs, such as minimum or maximum loan amounts, loan terms, or interest rates. Using their Loan Calculator on the Small Business Loans page, we could assume that loans range from $10,000 to $3,000,000, that business need to have been in operation for at least a year, and monthly gross sales must equal at least $10,000 (because the sliders don't go below those amounts), but it appears that individuals seeking funding will need to speak with a representative to get more detailed information. We had to turn to a newspaper article to determine that interest rates begin around 9%, as reported by president Joseph Camberato. We would have liked to see more transparency with their programs' details, especially for those who may be hoping to create a new business and are often turned down by other lenders.

We do appreciate the fact that National Business Capital is an accredited business with the Better Business Bureau and carried an A+ rating at the time of our review with only two registered customer complaints in the last 12 months. There are also a number of compelling testimonials on the site that show great attention to customer service, success in securing funding even for struggling businesses, and repeat customers who have been thrilled with the process of obtaining funding through this lender.

Ultimately, National Business Capital earns good marks: they appear to be a reputable lender dedicated to helping business owners across the spectrum to get the funding they need, even during times of financial difficulty. We'd gladly improve this rating with more details regarding their loan terms, particularly interest rates and other fees.

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Business Loans

To help you find the Best Business Loans, TopConsumerReviews.com provides you with an in-depth comparison of Funding Circle and National Business Capital.

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.

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:

  • Loan size and rate. How much will you be allowed to borrow? What interest rates do they typically offer on loans of that size?
  • Loan application process. When applying for your business loan, can it be completed online? Is the lending process easy and straightforward?
  • Requirements for business history. Can a brand-new business take out a loan, or is there a minimum time that the business must have been in operation in order to qualify? What other verification and/or collateral is required to secure the loan?
  • BBB rating. Does the lender have an established history of good business practices?

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!



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