By applying for a small business loan through Funding Circle, you’ll get a dedicated loan specialist – while they are not a financial advisor, they’ll be here to walk you through the entire funding process. Your dedicated loan specialist will be able to walk you through your options and work with you to find the best option(s) for your business.
The 7(a) is the SBA’s most widely used loan program. While the loan is partially guaranteed by the Small Business Administration, the financing is delivered through an approved SBA lender. This way, you can borrow anywhere between $20,000 and $5 million for as long as a 10-year term. The SBA’s 7(a) loan program is attractive to many small business owners for its below-market interest rate. If you apply through Funding Circle’s network of lending partners, you’ll see that the interest rate is currently set at Prime + 2.75% (currently 6%). 1 Payments are made monthly and you won’t face any fees for early repayment. Your business should have an operating history of at least three years to qualify. Use the proceeds for working capital, refinancing debt, making major purchases, and more. Learn more about applying for an SBA 7(a) loan through Funding Circle.
Small business loans
Turnaround time: After you submit your application, you can receive a decision as quickly as five minutes. If approved, you’ll receive your funds in your bank account within a few hours if you choose its $15 bank wire option. Choose its free ACH transfer option, and you’ll receive your funds within one to three business days.
What is a small business loan?
A small business loan is a type of business finance that helps to ensure that companies have enough money to cover daily operating costs. A small business loan offers you a convenient, low-cost way to finance your business activities. This type of loan can be used for almost any business purpose, such as boosting cash flow, purchasing equipment, recruiting staff and covering unexpected bills.
Both secured and unsecured small business loans are available for business owners in the UK. Unsecured loans are typically smaller amounts at a higher cost with shorter repayment terms. However, if you require a larger loan, offering an asset as security against the loan may enable you to secure more funds at better rates.
What is the difference between a business loan and a personal loan?
Business loans can only be used for business purposes and company purchases. Examples of this include using your loan to fund business expansion, or buy new stock and equipment. A personal loan differs to this because it is intended for personal use. Lenders will usually impose restrictions on personal loans that state they can’t be utilised for business use and vice versa.
A small business loan is no different from any other type of business finance. The credit provider gives you money upfront, and then you repay it, including any interest and fees over an agreed timeframe.
Each type of loan can vary in structure and repayment mechanism. For example, some allow you to draw down funds as and when you need it. These are called lines of credit or revolving credit facilities. They are much more flexible and work similarly to a credit card, paying interest only when you use it.
Depending on the loan you choose, you may be required to offer a company or personal asset to secure the loan. Failure to fulfil your repayment terms may result in the lender seizing your assets. You must, therefore, consider this option carefully.
Term loans are one of the most popular types of small business loans. If you’ve ever taken out a mortgage or financed a vehicle purchase, then you’re probably familiar with the mechanics of a term loan. Term loans are delivered via a lump-sum of capital from a lender and paid off in fixed installments according to a schedule until you pay back the principal plus any applicable interest (and any fees). Repayment periods can vary from short term (12 months or less) to medium term (1 -3 years) to long term (3+ years). Term loans are typically secured by a lien on your business assets (a right for the lender to seize those assets if you default on the loan) and may require a personal guarantee, which means your personal assets may be liable if your business defaults on the loan. One of the perks of a term loan is that the interest rate, which could be either fixed or variable, tends to be competitive and lower than other types of small business financing. This is especially true when you consider that you may be repaying the loan over a number of years. Business owners have flexibility with regards to how they can use the funds. For instance, one could use a small business term loan to expand to a new location, replenish inventory, or hire new employees.
Best Business Credit Cards 2022
|Company||Company – Logo||Forbes Advisor Rating||Forbes Advisor Rating||Loan amounts||Time in business||Minimum credit score||Learn More CTA text||Learn more CTA below text||Learn More|
|OnDeck||4.5||>||$5,000 to $250,000||1 year||600||Learn More||Via Ondeck’s Website|
|Lendio||4.5||>||$500 to $5 million||6 months||560||View More|
|BlueVine||4.0||>||$6,000 to $250,000||6 months||600||Learn More||On BlueVine’s Website|
|National Funding||4.0||>||$5,000 to $500,000||6 months||500||Learn More||On National Funding’s Website|
|Fundbox||4.0||>||800,000 to $150,000||6 months||600||View More|
|TD Bank||4.0||>||$10,000 to $5 million||1 year||660||View More|
|Funding Circle||4.0||>||$25,000 to $500,000||2 years||660||View More|
|Biz2Credit||4.0||>||$25,000 to 5000 million||6 months||575||View More|
|Kabbage||4.0||>||800,000 to $150,000||1 year||640||View More|
Next Up in Business Loans
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Kiah Treece is a licensed attorney and small business owner with experience in real estate and financing. Her focus is on demystifying debt to help individuals and business owners take control of their finances.