Best Peer-to-Peer Business Loans for December 2022 – Forbes Advisors

Funding Circle has been a direct lender specializing in small business loans since 2010. Since its inception, it has helped 130,000 businesses in 700 industries and provided $19.4 billion in loans worldwide. We chose Funding Circle because it offers fast, affordable loans with an easy application process and funds in as little as 48 hours. Potential borrowers have three options: a business term loan, a line of credit, or an SBA loan.

Funding Circle term loans range from $25,000 to $500,000 with repayment terms ranging from six months to five years. If you choose to apply for a business line of credit, you can receive between $6,000 and $100,000 in credit. However, Funding Circle did not specify the repayment terms of its line of credit. You can also apply for an SBA loan ranging from $25,000 to $500,000 for a term of up to 10 years.

Funding Circle has one major downside: Each loan requires a one-time origination fee, ranging from 3.49% to 6.99% of the approved loan amount.

qualified: The minimum qualifications for a loan through Funding Circle are:

  • Two years in business
  • Minimum personal credit score of 660
  • No personal bankruptcy among business owners in the past seven years

However, an SBA loan requires two years in business, a minimum credit score of 650, minimum annual income of at least $400,000, no current federal tax liens, and your business operating in one of SBA’s qualifying industries.

Turnaround time: Depending on the financing method you applied for, you can receive your funds within two to three days. However, due to the longer underwriting turnaround time, which typically takes up to three weeks, SBA loans can take weeks.

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