Funding Circle
provides as an online marketplace that enables individuals and businesses to
lend directly to other small businesses. By sidestepping the banks, Funding
Circle presents a number of benefits to lenders and borrowers:
Lenders
- Can earn attractive returns.
- Control the risk.
- Gain access to their money.
- Feel good factor associated
with supporting small business.
Borrowers
- Low cost of finance.
- Able to borrow quickly and
conveniently.
- Able to repay early at no
extra cost.
- Details remain confidential.
Funding Circle now
offers unsecured loans of between £5,000 and £1 million over one or three year
terms. The loans are based on a fixed rate with a monthly repayment plan. To
date, lenders have typically been receiving interest rates of between 6% and 9%.
Business development
costs can be funded with the loans offered. These costs may include:
- Working capital
- Expansion capital
- Asset finance
- One-off business expenses
Borrowers must be
owners of a small business that have been trading for at least two years in the
UK, with a minimum annual turnover of £100,000.
Applications may be
submitted at any time.
(Source: Grantfinder)
