Why use a broker to obtain a Funding Circle Loan?
The first thing you should know when applying directly to Funding Circle is that it is all automated! What this means is,
if your business gets turned down for funding you may never find out the reason why. If you don’t know the reason,
it can not be overturned. Also, Funding Circle carries out business and personal credit checks to vet the business so make
sure you have the best chance of acceptance and don't leave a bad credit footprint. Having a financial broker act on your
behalf has many advantages and could be the difference of getting the finance you need:
1: The finance brokers will complete the application for you, not only will this save you time but will also represent your business in-line with the Funding Circle criteria.
2: All finance brokers working with Funding Circle have an account manager that they are in regular communication with. This means if there is a problem with your application the issue can be discussed and hopefully overturned.
3: The finance broker is acting on your behalf, they are obligated to advise you that you are receiving a fair financial package with regards to conditions and rates.
At Grow Funding your fast business finance brokers we go one step further and do not charge you for our advice and application process.
Who are Funding Circle
To date Funding Circle reported to of helped 39,000 established business in the UK, and approved a new business loan on average every 5 minutes according to their website dated 04.09.2018
But, who are Funding Circle? And are there other lenders like them?
Funding Circle were founded in August 2010, and they were the first in the UK to make peer to peer lending available online bring investors to small and medium-sized businesses.
According to Wikipedia Funding Circle received 2.5 million in funding from index Venture in April 2011 to help grow their lending book. Now Funding Circle operates not only in the UK but the US, Netherlands and Germany.
So How does it work?
Investors have access to a browsing platform which allows them to make an offer of funding. The funding is in a loan facility with Funding Circle setting the rate of interest. In the UK the maximum amount that can be borrowed by Funding Circle is £1 million however funding for property can be more.
Funding Circle runs credit checks on the business to enable funding to be authorised, and all criteria must be fulfilled. Funding Circle uses Experian to ascertain the strength of the company and its creditworthiness. People ask how does Funding Circle make a profit? They do this by adding a fee to approved applications.
If you have any other questions relating to this Grow Funding Blog, please get in touch by contacting us at www.growfunding.co.uk
or by calling 01903 660091.