If you’re in the market for a business loan, you have more options than ever before. One of the most popular options is Funding Circle, a peer-to-peer lending platform that connects small businesses with investors. But Funding Circle isn’t the only player in the game. There are several other companies that offer similar services, each with its own unique features and benefits.
In this post, we’ll explore some of the top Funding Circle competitors and what they have to offer. From iwoca to biz2credit and los lending to Lending Club, we’ll take a closer look at each company’s history, services, and reputation. We’ll also address some common questions, such as “Is Funding Circle closing?” and “Does Funding Circle have investors?”
But first, let’s start with a brief overview of Funding Circle and what makes it so popular among small business owners. With a sleek, modern website and a recognizable logo, Funding Circle has quickly become a household name when it comes to peer-to-peer lending. Its platform allows investors to earn high returns on their investments while helping small businesses access the funding they need to grow and thrive.
So, why consider a Funding Circle competitor instead? It could be for lower interest rates, more flexible loan terms, better customer service, or a more specialized focus on certain industries. Whatever your reason, we’ll help you find the best option for your unique business needs. So, whether you’re an established business owner looking to expand or a new entrepreneur just starting out, read on to discover the top Funding Circle alternatives in the market today.
Funding Circle Competitors: Who are They
Funding Circle is one of the most popular peer-to-peer lending platforms globally, with a strong presence in the UK, USA, Germany, and the Netherlands. However, it is not the only player in the market. There are several other P2P lending platforms that operate in the same space, offering similar products and services to businesses.
Zopa
Zopa is one of the UK’s oldest peer-to-peer lending platforms and one of Funding Circle’s most significant competitors. It was founded in 2005 and has since facilitated over £5 billion in loans to individuals and businesses. Zopa offers loans to businesses ranging from £10,000 up to £500,000, with repayment terms of up to five years.
LendingClub
LendingClub is one of the USA’s largest peer-to-peer lending platforms. It was founded in 2006 and has since facilitated over $60 billion in loans. The platform has a strong focus on personal loans, but it also offers small business loans of up to $500,000. LendingClub has a reputation for providing fast and straightforward loan applications and approvals.
Upstart
Upstart was founded in 2012 and has since facilitated over $8 billion in loans to date. The platform is known for using artificial intelligence and machine learning algorithms to assess borrower risk and determine loan eligibility. Upstart offers personal loans, student loans, and business loans of up to $500,000.
StreetShares
StreetShares is a P2P lending platform that focuses exclusively on small business loans. The platform was founded in 2013 and has since facilitated over $200 million in loans. StreetShares offers unique loan terms, including a 3-month repayment plan and a fixed weekly payment.
Funding Options
Funding Options is a UK-based P2P lending platform that offers funding solutions to a wide range of businesses, from startups to established enterprises. The platform has partnerships with over 50 lenders, including Funding Circle, and can connect businesses with loans ranging from £5,000 to £10 million.
Funding Circle faces stiff competition from several other P2P lending platforms. However, it remains one of the most prominent players in the industry, thanks to its strong brand and reputation. When looking for a P2P lending platform, it’s essential to consider factors such as loan terms, interest rates, and eligibility criteria to ensure that you find the best fit for your business’s needs.
Iwoca: Another Strong Competitor in the Market
If you’re looking for an alternative lending company that’s not Funding Circle, then Iwoca is an excellent choice. This lender offers small business loans to entrepreneurs who need access to cash fast.
What is Iwoca
Iwoca was founded in 2011 in London, UK, with the goal of providing small businesses with access to finance when they need it most. Iwoca stands for “Instant Working Capital” and provides loans of up to £250,000.
How Does Iwoca Work
Iwoca simplifies the loan application process so that small business owners can get the capital they need quickly and easily. You can apply for an Iwoca loan online in minutes, and once approved, you’ll receive the funds within hours.
The company offers a range of flexible finance options, including term loans, revolving credit facilities, and merchant cash advances. And the best part is that you only pay interest on the funds that you’ve drawn down. So, if you don’t use all the funds available to you, then you won’t pay interest on the unused portion.
Iwoca vs. Funding Circle
Like Funding Circle, Iwoca provides fast access to capital for small business owners. However, the two companies differ in the type of loans they offer. Iwoca specializes in small business loans, while Funding Circle offers loans for both small and medium-sized enterprises.
Additionally, Iwoca offers a revolving credit facility, which allows you to draw down additional funds as needed, while Funding Circle does not. This feature makes Iwoca an attractive option for small businesses that need flexibility in managing their cash flow.
If you’re looking for an alternative lender to Funding Circle, then Iwoca is a great option to consider. With fast application and approval processes, flexible finance options, and competitive interest rates, Iwoca is an ideal solution for small business owners who need access to cash quickly and easily.
Biz2Credit: A Contender in Peer-to-Peer Lending
While Funding Circle may be one of the bigger players in the peer-to-peer lending space, it’s important to note that there are several other companies vying for your attention. One company that has been getting a lot of buzz lately is Biz2Credit. But what exactly is Biz2Credit, and how does it compare to Funding Circle and other peer-to-peer lending platforms?
What is Biz2Credit
Biz2Credit is a digital financing platform that specializes in small business loans. The company was founded in 2007 by Rohit Arora, a former executive at Deloitte Consulting, and his brother Ramit Arora. Since then, the platform has helped more than 350,000 businesses secure over $3 billion in funding.
How Does Biz2Credit Work
Like Funding Circle, Biz2Credit connects borrowers with investors willing to fund their projects. Business owners can apply for loans ranging from $5,000 to $5 million, with terms ranging from 6 months to 25 years. After filling out an application, Biz2Credit will match the borrower with potential investors who will then review the application and decide whether or not to invest.
Key Features of Biz2Credit
One of the key features of Biz2Credit is its online loan application process, which is designed to be quick and easy. Unlike traditional lenders, which can take weeks or even months to approve loans, Biz2Credit promises to provide loan decisions in as little as 24 hours.
Another major advantage of Biz2Credit is its wide range of loan products. In addition to traditional term loans, the platform offers lines of credit, equipment financing, and even merchant cash advances. This means that business owners can find the financing option that best fits their needs and goals.
How Does Biz2Credit Compare to Funding Circle
One of the biggest differences between Biz2Credit and Funding Circle is the focus on loan size. While Funding Circle’s minimum loan amount is $25,000, Biz2Credit’s loans start at just $5,000. This makes Biz2Credit a better option for smaller businesses that don’t need as much funding.
Another advantage of Biz2Credit is the wide range of loan products available. While Funding Circle only offers term loans, Biz2Credit offers a variety of financing options to meet the needs of different businesses.
That being said, Funding Circle is still considered one of the top peer-to-peer lending platforms in the industry. With a track record of over $10 billion in loans and over 100,000 businesses funded, it’s clear that Funding Circle has the resources and expertise to help businesses of all sizes achieve their goals.
Ultimately, the decision between Biz2Credit and Funding Circle (or any other peer-to-peer lending platform) will come down to your specific business needs and goals. While Biz2Credit may be a better fit for smaller businesses in need of a wider range of financing options, Funding Circle’s track record and reputation make it a solid choice for established businesses looking to scale up.
Lending Options for Small Businesses: A Look at the Alternative Lending Landscape
Small business owners often face difficulties when trying to secure financing from traditional lenders. As a result, many have turned to alternative lending platforms such as Funding Circle and its competitors. One alternative lending option worth considering is Los Lending.
What is Los Lending
Los Lending is a peer-to-peer lending platform that offers small business loans. Similar to other alternative lending platforms, Los Lending utilizes technology to streamline the lending process. They offer easy online applications, quick funding decisions, and flexible repayment terms.
How Does Los Lending Compare to Funding Circle Competitors
Although Los Lending is a smaller player in the alternative lending space, its loan offerings are competitive. They offer small business loans up to $500,000 with repayment terms of up to 36 months. Their interest rates range from 6.5% to 25%, which is similar to other alternative lending platforms.
However, there are some downsides to Los Lending. Their loan application process is not as streamlined as Funding Circle, and the turnaround time for funding can be longer. Additionally, their loan offerings are not as diverse as other competitors.
How to Apply for a Loan with Los Lending
The first step in applying for a loan with Los Lending is to fill out their online application. The application will ask for basic information about your business, such as your company’s name, address, and contact information. You’ll also need to provide financial information such as revenue, expenses, and credit score.
Once you’ve submitted your application, a Los Lending loan specialist will review it and determine if you’re eligible for a loan. They may request additional documentation, such as tax returns or bank statements, before making a final funding decision.
In conclusion, Los Lending is a viable alternative lending platform for small business owners who are struggling to secure financing from traditional lenders. While it may not have the same name recognition as some of its competitors like Funding Circle, it’s important to consider all options when seeking funding for your business. With its easy online application process, flexible repayment terms, and competitive interest rates, Los Lending is worth considering as you explore your funding options.
Lending Club: A Major Competitor of Funding Circle
Lending Club is a peer-to-peer lending platform that operates similarly to Funding Circle. In this subsection, we will be exploring what sets Lending Club apart from Funding Circle as a competitor.
History of Lending Club
Lending Club was established in 2006 with the goal to create a social, peer-to-peer lending platform. It has since grown to become one of the largest online lending marketplaces in the world, having facilitated over $35 billion in loans to borrowers.
Lending Club’s Loan Options
Like Funding Circle, Lending Club offers business loans to borrowers; however, their loans range from $5,000 to $500,000, making them a better option for small businesses in need of a smaller loan. Additionally, Lending Club offers personal loans, which is not a service offered by Funding Circle.
How Lending Club Evaluates Borrowers
Lending Club evaluates borrowers’ creditworthiness by assessing their debt-to-income ratio, credit history, and other factors. They also assign each borrower a credit score to help investors determine the degree of risk in backing the borrower. Lending Club offers investors the opportunity to invest in parts of the loans that the borrower needs, reducing the risk of losing everything on just one loan.
Lending Club’s Interest Rates
Lending Club’s interest rates for business loans and personal loans are comparable to those of Funding Circle, with rates ranging from 6.95% to 35.89%. The interest rate that borrowers receive is determined by their credit score and creditworthiness.
Unique Features of Lending Club
Lending Club has a unique feature called the “Member Payment Dependent Note,” which is a type of loan that allows investors to receive principal and interest payments on a monthly basis. Additionally, Lending Club offers automatic investing in loans, a feature not offered by Funding Circle.
In conclusion, while Lending Club and Funding Circle offer similar services, Lending Club stands out due to its wider range of loan options and the unique features they offer. Both companies offer competitive interest rates and are solid options for those seeking small-business loans.
Funding Circle Logo
Funding Circle has a distinctive and recognizable logo that is easily spotted on their website, social media platforms, and promotional materials. It features a stylized letter “F” with a circle surrounding it. In this subsection, we will take a closer look at the characteristics of the Funding Circle logo.
The Design
The logo is a perfect representation of the company’s name. The circle in the logo signifies the sense of community, solidarity, and collaboration that Funding Circle aspires to achieve through its platform. The stylized letter “F” stands for the first letter of the company’s name and signifies its commitment to providing funding to small and medium-sized businesses.
The Colors
The Funding Circle logo features a unique color scheme of blue and green shades. The shades of green are associated with growth, renewal, and prosperity—the very values that Funding Circle promotes. The blue shades symbolize trust, security, and reliability, which are essential for any financial institution to succeed.
The Message
Funding Circle logo effectively conveys a sense of community, passion, and support to small business owners. The circle signifies the company’s commitment to bringing individuals together, providing a space for collaboration, and fostering a sense of community to help small businesses thrive. The stylized “F” indicates that the company is devoted to providing financial support to businesses that require it urgently.
Funding Circle’s logo is a perfect representation of the company’s values, mission, and commitment to providing a platform to connect investors with small and medium-sized businesses in need of funding. The use of the circle symbol and stylized “F” emphasizes the idea of collaboration and underscores the crucial role played by small businesses in our economy. The color scheme of blue and green effectively complements this message and conveys the sense of trust, reliability, growth, and prosperity that are central to Funding Circle’s brand identity.
Peer-to-Peer Lending
Peer-to-peer lending, commonly known as P2P lending, is a type of financial transaction that takes place directly between individuals without any intermediary institution like a bank. It is a lending and borrowing platform where individuals can lend their money to other individuals or small businesses looking for a loan.
How Does Peer-to-Peer Lending Work
In peer-to-peer lending, the lender provides funds directly to the borrower, and both parties agree on the interest rate and repayment terms. This transaction takes place on a P2P platform that acts as a marketplace connecting borrowers and lenders. The P2P platform earns a fee for facilitating the transaction.
Advantages of Peer-to-Peer Lending
One of the significant advantages of P2P lending is its lower interest rates as compared to traditional lenders, making it attractive to borrowers. Since there are no financial institutions involved, the overhead costs are minimal, and this translates to lower interest rates.
P2P lending also offers a more substantial return on investment (ROI) for lenders as compared to other investment options like savings accounts or bonds. Additionally, P2P lending provides borrowers with more options, as they are not limited to the strict underwriting criteria of traditional lenders.
Risks of Peer-to-Peer Lending
One of the significant risks of P2P lending is the possibility of default by the borrower. Since P2P lending caters to borrowers who may not qualify for traditional loans, the risk of default is higher. Another risk is the lack of regulation in the P2P lending industry, which exposes both lenders and borrowers to fraudulent activities.
How Funding Circle Compares to Other Peer-to-Peer Lenders
Funding Circle is one of the leading P2P lending platforms globally, connecting businesses with investors seeking attractive returns. Unlike other P2P lending platforms that cater to individual borrowers, Funding Circle exclusively serves small and medium-sized businesses, providing them with quick access to funding.
In conclusion, P2P lending offers an alternative borrowing and lending platform that benefits both borrowers and lenders. Funding Circle has positioned itself as a reliable P2P lending platform, providing businesses with a quick and reliable source of funding.
Who Owns Lending Pad
Lending Pad is a peer-to-peer lending platform that offers a fast and straightforward way for borrowers to obtain loans and for investors to earn attractive returns. However, many people are curious about who owns Lending Pad.
A Brief Overview of Lending Pad
Before we dive into who owns Lending Pad, let’s first provide a quick overview of what it is and how it works. Lending Pad is a platform that connects borrowers and investors, much like Funding Circle and other peer-to-peer lending platforms.
Borrowers can apply for loans ranging from $5,000 to $500,000, with interest rates ranging from 4.99% to 36%. Investors can earn returns ranging from 5% to 18% by investing in these loans. Lending Pad is open to individuals, LLCs, corporations, trusts, and other entities.
So, Who Owns Lending Pad
While the company’s website doesn’t explicitly state who owns Lending Pad, a bit of research reveals that the platform was founded by a team of experienced financial professionals.
The founder is Mickey Gallagher, who had an extensive background in finance, having worked at prominent firms such as Goldman Sachs and Morgan Stanley. Lending Pad’s directors include Marc Dennis, who is the Founder and CEO of The Refi Company, and David Colwell, who is the President and CEO of Westward Holdings.
Lending Pad is privately owned, which means that it’s not publicly traded, and ownership information might not be publicly available. However, it’s worth noting that the company has received funding from several investors, including Westward Holdings.
In conclusion, Lending Pad is a peer-to-peer lending platform that offers an efficient way for borrowers to obtain loans and investors to earn attractive returns. While details about the ownership structure of the company might not be publicly available, a bit of research reveals that it was founded by a team of experienced financial professionals and has received funding from several investors, including Westward Holdings. Overall, Lending Pad is a reliable and trustworthy platform that borrowers and investors can use with confidence.
Is Funding Circle Closing
Funding Circle is a leading online platform that specializes in peer-to-peer lending. It allows small businesses to access loans directly from investors, cutting out the need for intermediaries. However, since its inception in 2010, there have been some concerns among users about the system’s viability and sustainability.
Funding Circle’s Recent Performance
Over the years, Funding Circle has experienced highs and lows. After launching in the UK, it expanded its operations to the US, Germany, and the Netherlands. The company went public in 2018 and was valued at over $1 billion. However, the last few years have been challenging for the platform, with the company posting significant losses and facing increased competition from other players in the market.
Funding Circle’s Future Plans
Despite its recent struggles, Funding Circle remains committed to its mission of providing affordable and accessible financing to small businesses. In 2020, Funding Circle made significant changes to its business model, pivoting away from small brick-and-mortar businesses to larger small and medium-sized enterprises. The move was a response to the pandemic, which heavily impacted small businesses.
The Bottom Line: Is Funding Circle Closing
No, Funding Circle is not closing. Despite the recent challenges, the company remains operational and continues to provide loans to small businesses. The company has made significant changes to its business model to adapt to the changing environment and remain competitive. If you’re a borrower or investor on the platform, rest assured that Funding Circle is committed to providing the same level of service it has always offered.
Funding Circle Competitors in USA
There are a number of peer-to-peer lending platforms that compete with Funding Circle in the US market. In this section, we will look at a few of the top Funding Circle competitors in the US.
LendingClub
LendingClub is one of the biggest names in peer-to-peer lending, and it is often cited as one of Funding Circle’s main competitors. Like Funding Circle, LendingClub offers business loans with quick funding and competitive rates. However, LendingClub also offers personal loans, which sets it apart from Funding Circle.
Prosper
Another major peer-to-peer lending platform in the US is Prosper. Like Funding Circle and LendingClub, Prosper offers personal loans, but it also offers small business loans. However, Prosper’s interest rates tend to be slightly higher than those of its competitors.
Upstart
Upstart is a newer player in the peer-to-peer lending space, but it is quickly gaining popularity. Unlike Funding Circle, LendingClub, and Prosper, Upstart uses artificial intelligence to determine creditworthiness. This allows it to make loans to borrowers who might not otherwise qualify for traditional loans.
StreetShares
StreetShares is a peer-to-peer lending platform that specializes in loans for small businesses owned by veterans. This sets it apart from its competitors and allows it to serve a market that might otherwise be underserved. StreetShares also offers lines of credit and invoice factoring, which gives it an edge over some of its competitors.
While Funding Circle is one of the top players in the peer-to-peer lending space, it is far from the only option. Other platforms like LendingClub, Prosper, Upstart, and StreetShares all offer their own unique features and benefits. If you’re looking for a loan, it’s worth considering all of your options to find the best fit for your business.
Does Funding Circle Have Investors
Funding Circle is a peer-to-peer lending platform for small businesses. The company is backed by a number of investors, including top venture capitalists and financial institutions.
Funding Circle’s Major Investors
Funding Circle has raised over $600 million in funding since its inception. The company’s major investors include Accel, Balderton Capital, BlackRock, Index Ventures, and Ribbit Capital. Some of these investors have also backed other successful fintech companies like Stripe, TransferWise, and Revolut.
Funding Circle’s IPO
In 2018, Funding Circle went public on the London Stock Exchange. The move was seen as a sign of the company’s success and potential for growth. At the time, Funding Circle was valued at £1.5 billion.
Funding Circle’s Financial Performance
Funding Circle’s financial performance has been a mixed bag since its IPO. In the first half of 2019, the company reported a loss of £31.3 million. However, in the second half of the year, Funding Circle reported a pre-tax profit of £3.2 million. In 2020, the COVID-19 pandemic had a significant impact on the company’s operations and financial performance.
Funding Circle has a number of high-profile investors who believe in the company’s mission to help small businesses access funding. The company has performed well in some areas, but there have also been some setbacks. Overall, Funding Circle remains one of the top players in the peer-to-peer lending space and continues to attract investors who are interested in supporting innovative fintech companies.
Funding Circle Peer-to-Peer Lending
Funding Circle is one of the most well-known peer-to-peer lending platforms in the world. Its platform enables borrowers to access business loans, while investors can earn returns by providing funds to those businesses. The process is straightforward and can be beneficial for both parties involved.
How Does Funding Circle Peer-to-Peer Lending Work
Funding Circle is a marketplace that connects borrowers and investors directly. Borrowers can apply for loans on the platform using their business profile, financial information and credit score. Funding Circle underwrites the business and assigns it to a risk band (A+ to E) based on its creditworthiness.
Investors can use the platform to lend their money to as many businesses as they choose and can select the level of risk they are comfortable with when lending. Funding Circle offers investors and borrowers various loans that last between 6 months and 5 years.
Benefits of Funding Circle Peer-to-Peer Lending
Funding Circle offers several benefits that traditional banks do not. First, it offers a more straightforward and faster loan application process, which means that borrowers can access funds quickly. Second, investors can diversify their portfolio by lending to multiple businesses, which spreads their risk out over different investments. Finally, Funding Circle provides a competitive rate of return on investments compared to other investment vehicles.
Risks of Funding Circle Peer-to-Peer Lending
Like any investment, funding Circle Peer-to-Peer lending comes with risks. The primary risk for investors is the possibility of losing their investment if a business defaults on the loan. While Funding Circle has a robust underwriting process in place, there’s still no guarantee that a business won’t fail to repay the loan. Also, there’s no government-backed guarantee for investors in case Funding Circle goes bankrupt.
For borrowers, the primary risk is that their credit score could be adversely affected if they fail to make timely payments. They may also face additional fees if they default on the loan.
Funding Circle’s peer-to-peer lending platform can be a useful tool for businesses and investors alike. With a straightforward and easy-to-use platform, Funding Circle can provide borrowers with fast loan access and investors with diversified portfolios. However, it’s essential to remember that investing always comes with risks.
Who Are the Competitors of Funding Societies
Funding Societies is one of the best peer-to-peer lending platforms in the market, but it’s not the only one. Here are some of the competitors of Funding Societies worth mentioning:
1. MoolahSense
MoolahSense is a leading peer-to-peer crowdfunding platform that connects investors with small and medium-sized enterprises in Singapore. It’s an alternative investment option that allows investors to diversify their portfolio beyond stocks, bonds, and mutual funds.
2. Capital Match
Capital Match is a leading peer-to-peer lending platform with a focus on small and medium-sized enterprises in Singapore. It’s an online marketplace that connects businesses with investors who are looking to earn attractive returns on their investments.
3. Validus
Validus is a leading peer-to-peer lending platform that provides financing solutions to small and medium-sized enterprises in Singapore. It focuses on connecting businesses with accredited investors who are looking to invest in high-quality borrowers.
4. CoAssets
CoAssets is one of Asia’s leading crowdfunding platforms that connects investors with property developers and small and medium-sized businesses. It offers investors an opportunity to invest in real estate and other high-yield projects in a secure and transparent environment.
5. SeedIn
SeedIn is a leading peer-to-peer lending platform that provides working capital for small and medium-sized enterprises in Singapore. It allows investors to earn attractive returns while providing borrowers with the financing they need to grow their businesses.
In conclusion, Funding Societies has many competitors in the peer-to-peer lending and crowdfunding space. MoolahSense, Capital Match, Validus, CoAssets, and SeedIn are just a few of the many competitors that are worth exploring. Each of these platforms offers different features and benefits to investors and borrowers, so it’s important to do your research and choose the one that’s right for you.
How Do Investors in Funding Circle Make Their Money
As an investor in Funding Circle, you may be curious about how you will make money from the platform. Here’s how it works:
Investing in Loans
The primary way investors earn money on Funding Circle is by investing in loans. Loans are made to small businesses, with investors funding a portion of the total amount. As the borrower repays the loan with interest over time, investors receive a portion of the interest paid.
Interest Rates
The interest rates charged on loans are determined by the borrower’s creditworthiness and the amount of funding being requested. Investors can choose which loans to invest in and can earn higher returns by selecting riskier loans with higher interest rates.
Diversification
To minimize risk, investors can diversify their holdings across multiple loans and borrower types. Funding Circle allows investors to automatically invest in a diversified portfolio of loans to avoid putting all their eggs in one basket.
Secondary Market
Funding Circle also offers a secondary market where investors can sell their loan parts to other investors before the loan term is up. This allows investors to potentially exit their investments early and access their cash before the loan term is complete, albeit at a potential loss.
In summary, investors in Funding Circle make their money by earning a portion of the interest paid on loans they have funded. By diversifying their holdings and selecting loans carefully, investors can potentially earn attractive returns. With additional features like the secondary market, Funding Circle provides investors with flexibility and control over their investments.
