Funding Circle and the Best Funding Option Loan Reviews
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What Is Peer To Peer Lending Bad Credit?
Peer lending websites are a growing phenomenon in the UK.
Their promotion efforts have a propensity to centre on giving investors the high interest rates when investing and the benefits they provide to savers.
The site’s success is determined by winning over lenders trying to find a home for their savings: the return on investment from the market and the financial benefits.
It’s assumed that borrowers compare different loan/funding sites, and they will find their own way by doing their research on these lending websites.
The climate isn’t easy if you operate a business that’s in need of investment.
What are your alternatives? There are 5 main funding option loan sites:
- Funding Circle
- Lending Club
- Lending Crowd
Among the 5 UK peer websites, the one we recommend for company borrowing is Funding Circle.
Who Can Borrow Through Funding Circle?
A company is eligible for applying for a loan of between £5,000 and £1,000,000, if required.
The company will need a turnover of over 100,000 a year, have registered accounts at Companies House for at least 2 years and be running as a limited Business or LLP, not a company run by a person or a partnership.
These loans are repayable within a period between 6 months and five years.
A personal guarantee for these loan is provided in all cases, and for larger loans within 100,000, these sites requires security to be given, either on a particular asset to be purchased with the loan proceeds, or usually over company assets.
Funding Circle How Long Does It Take?
In this section, we will outline how it works for borrowers.
A company needing into borrow must initially complete an online application.
Funding Circle (FC) evaluates your answers which should take about 20 minutes.
They aim to process the info, complete routine checks and revert to these borrowers with a decision within two days.
FC will do a credit check with Experian, and will also check with CIFAS as into whether any fraud has been recorded in connection with a business director.
The borrower’s proposal can be accepted or refused outright, or Funding Circle might request adjustments in the terms or the security required.
How Much Are the Funding Circle Rates?
Dependant upon FCs evaluation of the borrowing company and the, and the degree of risk in lending into them, these loan request, once accepted, will be assigned a risk band that determines the range of rates of interest allowed for the loan.
The rates range between 7.2% and 11.5%, as at Nov 2013.
Once an agreement has been reached on terms, these loan proposals will appear on the FC site, with information on:
- the company’s credit rating
- and the purpose of the loan
- together with details of any guarantee and/or security
Inside the assigned risk band, lenders may offer to lend money at their chosen rate, which is driven down in a reverse auction while subsequent lenders place their bids.
I hope that this helps you with best funding option loan reviews.
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