Funding Circle vs LendingClub Business Loans: Compare Lenders

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Funding Circle Vs LendingClub

If you’re looking for a loan for your business, chances are you’ve come across Funding Circle or Lending Club. As these two lenders may look quite similar at first glance, it could be difficult to choose which one is right for you. In this article, we’ll get into the nitty gritty of each lender, and take a look at some of the pros and cons of their respective products.

How easy is it to apply for a loan with Funding Circle and LendingClub?

Funding Circle and Lending Club both offer easy, online applications that only take a few minutes to complete as long as you have all of the necessary information at the ready.

Does using Funding Circle or LendingClub affect your credit?

Funding Circle and Lending Club both report to creditors, so your ability to repay their loans will impact your credit. As long as you’re able to make timely payments, using these lenders should help you improve your credit score.

Are Funding Circle and LendingClub legit?

Funding Circle and Lending Club are both legitimate lenders. Funding Circle has an A+ rating with the Better Business Bureau (BBB) and a 3-star rating based on customer reviews. Lending Club has an A rating with the BBB and just a two-star rating based on customer reviews. Lending Club’s BBB page has also been flagged to caution potential borrowers that scammers are fraudulently using the lender’s name in telephone calls.

What is the application process like for Funding Circle and LendingClub?

Both Funding Circle and Lending Club have easy, online applications that require filling out forms with basic information, including submitting a business’ annual revenue, revenue statements, tax returns, bank statements, and personal contact information. Both lenders take a soft pull of your credit upon the initial pre-qualification application and take a hard pull of your credit once you accept an offer.

One of the major benefits of Funding Circle’s application process, however, is their customer service line which immediately connects applicants to a live representative as soon as they are pre-approved.

Funding Circle Vs LendingClub - Compare

Lender Loan Amounts: Interest Rates: Repayment Terms:
Loan Amounts:
Up to $500,000
Interest Rates:
4.99% - 26.99%
Repayment Terms:
1 - 5 years
Loan Amounts:
Up to $300,000
Interest Rates:
9.8% – 35.7%
Repayment Terms::
1 - 5 years
Click to compare estimated rates. 

Funding Circle


  • High maximum loan amount of $500,000
  • Potential for flexible repayment terms of up to five years
  • Monthly repayments
  • Easy, streamlined online application
  • Access to a live representative
  • No prepayment penalty


  • High minimum loan amount of $25,000
  • Relatively long time to disbursement, with a typical funding time of 10 days
  • Difficult for low-credit borrowers to qualify, with a minimum credit score of 620
  • Not good for new businesses, with a required minimum time in business of two years
  • Origination fee of up to 7.99%

Good option for:

Funding Circle is ideal for owners of established businesses, with above-average credit who want to compare multiple offers by submitting just one application. Their loans, which range between $25,000 and $500,000, are best for medium and large-sized projects such as repairs, vehicle, or equipment purchases.

How to Qualify:

In order to qualify for a Funding Circle loan, you should have a credit score above 620 and at least two years in business.

Rates & Costs:

Funding Circle’s annual percentage rates range between 10.91% and 35.5%. Their loans also come with origination fees between 3.49% and 7.99%.

Time To Funding:

Funding Circle’s loans typically take around 10 days to fund.

Loan Amounts:

Their loans start at $25,000 with a maximum amount of $500,000.

» MORE: Funding Circle Small Business Loans Review



  • Wide range of loans, with amounts starting at $5,000 with a maximum of $300,000
  • Potential for APR as low as 9.77%
  • Flexible loan terms of up to five years
  • Option for loan or line of credit


  • Difficult for new businesses to qualify, with a minimum time in business requirement of two years
  • $15 check payment, insufficient funds, and late payment fees

Good option for:

Lending Club’s loans are good for established businesses that need access to quick cash for small, medium, and large-sized projects such as emergency repairs, supplies purchases, or a down payment on a company vehicle.

How to Qualify:

To qualify for a Lending Club loan, you should have a credit score above 620, an annual revenue above $75,000, and at least two years in business.

Rates & Costs:

Lending Club’s loans come with APRs between 9.77% and 35.98%, and origination fees start at 3.49% and go up to 7.99%. They also charge a check payment fee and insufficient funds fee of $15, along with a late payment fee of $15 or 5% of the late amount.

Time To Funding:

Lending Club’s loans typically fund within 2-14 business days.

Loan Amounts:

Lending Club’s loans range between $5,000 and $300,000.

» MORE: LendingClub Small Business Loans Review


While both Funding Circle and Lending Club offer similar products, it’s important to look at the fine print and understand some of the more specific differences between the two. If you are looking for a loan above $300,000, Funding Circle will likely be the most ideal option for you. However, if fast cash is what you need, it’s better to apply with Lending Club as they have a significantly faster time to fund. Regardless of which lender you choose to go with, however, make sure to carefully take a look at the aspects of any agreement before signing on the dotted line.

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