Funding Circle Review - P2P Lending for Businesses

1. Is Funding Circle a legitimate company?
2. Is Funding Circle going bust?
3. Is Funding Circle SBA approved?
4. How much can you make with Funding Circle?
5. Is there a minimum credit score for Funding Circle?
6. How does funding circle make their money?
7. Is peer to peer lending worth it?
8. Why Peer to peer lending is bad?
9. Can I make money from peer to peer lending?
10. How does a business qualify for an SBA loan?
11. Who qualifies for SBA loans?
12. How much can I borrow from the SBA?

Is Funding Circle a legitimate company?

Is Funding Circle a legitimate lender? ... Funding Circle is not a bank. The company is a peer-to-peer lending marketplace that connects small businesses directly to investors that fund small-business loans.

Is Funding Circle going bust?

Funding Circle has temporarily closed its doors to retail investors, whilst it focuses on providing CBILS loans to businesses. ... All investments made on the Funding Circle platform are in unsecured loans to UK businesses. The platform features no provision fund and instead seeks to mitigate risk via diversification.

Is Funding Circle SBA approved?

If you are looking for an SBA loan designed to carry your business through the COVID-19 pandemic, Funding Circle was recently recognized as an official SBA lending partner.

How much can you make with Funding Circle?

Earn a projected annualised return of 4.5 - 6.5%

Is there a minimum credit score for Funding Circle?

The minimum qualifications for a loan through Funding Circle are: 2 years in business. A personal FICO credit score of at least 660 for business owners.

How does funding circle make their money?

Funding Circle collects repayments from businesses and credits the funds to your Notes. When businesses are late or unable to fully repay their loan, our collections and recoveries team will work to recover as much as possible for you.

Is peer to peer lending worth it?

Investing in peer-to-peer (P2P) lending is a great way to boost yields and diversify your portfolio significantly. P2P lending is an alternative asset that offers attractive absolute and risk-adjusted returns, even in today's low-interest-rate environment.

Why Peer to peer lending is bad?

High Credit Risk

Since P2P lending lowers the criteria for getting the loans, allowing people with lower salaries and lower credit ratings to take loans, which means credit risk is much higher than usual, which is understandable.

Can I make money from peer to peer lending?

Peer to peer lending is one of the most simple and effective ways I've ever found to make passive income. It has outperformed my stock picks, selling old baseball cards, my own business ideas – everything. I've earned more money through it than I've earned at anything else except my day job.

How does a business qualify for an SBA loan?

Eligibility requirements

Operate for profit. Be engaged in, or propose to do business in, the U.S. or its territories. Have reasonable owner equity to invest. Use alternative financial resources, including personal assets, before seeking financial assistance.

Who qualifies for SBA loans?

SBA 7(a) Eligibility Requirements

• You must be officially registered as a for-profit business, and you must be operating legally.
• As the business owner, you can't be on parole.
• Your business must have fewer than 500 employees, and less than $7.5 million revenue on average each year for the past three years.

How much can I borrow from the SBA?

Amounts - The maximum loan amount is $5 million. The total SBA guarantee for any one borrower may not exceed $3,750,000. Maturity - Up to 25 years for real estate acquisition or construction. Most other SBA loans are limited to 10 years.