Funding Circle
Pros:
- 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
Cons:
- 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
LendingClub
Pros:
- 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
Cons:
- 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 starting at 3.49% and going 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
Conclusion
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.
