2016 Welcome Pack - Amazon S3...4 Our Referral Partner Program Join our Referral Partner Program to...
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Transcript of 2016 Welcome Pack - Amazon S3...4 Our Referral Partner Program Join our Referral Partner Program to...
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As the world’s leading marketplace for small business lending, Funding Circle helps established small businesses in the US, UK and central Europe quickly access affordable financing.
Our roots are in small business ownership and our co-founders experienced firsthand the difficulty of obtaining a business loan to grow their chain of successful fitness centers. After being turned down by more than 90 different traditional lenders, they realized someone needed to build a better financial system with a true focus on small businesses.
Since 2010, we have lent more than $2 billion to over 12,000 small businesses.
Welcome to Funding Circle
Dirk DavisMerchant Funding International, Funding Circle Partner
“One of the things I love most about Funding Circle is their hands-on service
for referral partners.”
Referal Partner Program
Our Referral Partner Program 4
Rates & commisions 5
Use of proceeds 8
Our credit criteria & required documentation 9
Our simple application process 10
FAQ 11
Contact us 18
Table of contents
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Our Referral Partner ProgramJoin our Referral Partner Program to connect your clients with fast, affordable business loans
For your clients:
• Loan size: $25,000 to $500,000
• Terms: 1, 2, 3,4, and 5 year terms
• Annual interest rates: 5.49% - 27.79%, monthly principal and interest repayments
• Transparent fees: Only one origination fee of 3.49% or 4.99% (no prepayment penalties)
• Fast & easy process: 10 minute online application, funding within 7 days
For you:
• Attractive commissions: Earn a 1.50 - 3.00% commission if we lend to a small business you refer
• Collaborative relationships: Work with us – through your dedicated Relationship Manager – so that we can incorporate your feedback into our process and products in order to help you better meet your clients’ needs.
• Personal online portal: Input and submit applications through your customized portal or share your personalized link with clients so they can apply directly. Sort and track applications in real time on your dashboard.
• Customized resources: Access customized decline information and white label marketing materials and participate in weekly topic teach-ins on topics chosen based on partner request (e.g. underwriting, marketing).
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Rates & commisionsInterest rates (annual)
12 months 24 months 36 months 48 months 60 months
Interest Rates 5.49% to 23.29%
7.99 to 25.79%
8.99% to 26.79%
9.79% to 27.79%
10.49% to 21.29%
Origination Fee
3.49% (legacy) or 4.99% (premier)
A one-off fee to cover our costs of evaluating and originating your loan. As always, this fee is deducted from the total loan proceeds at funding (your fee is still paid out at funding).
Commissions
As a Funding Circle Referral Partner, you can choose between two different commission structures – both of which include the opportunity to gain added benefits by hitting specified targets. Legacy Program: Earn 1.50%* out of a 3.49% origination fee charged to the borrower for every funded loan you refer to Funding Circle. Under this program, you may choose to charge an additional fee to your borrower (no cap), but you are responsible for invoicing and collecting the outside fees and complying with applicable laws.
Premier Program: Earn 3.00% out of a 4.99% origination fee charged to the borrower for every funded loan you refer to Funding Circle. In return for this higher commission, you agree not to charge the borrower any outside fees and to give Funding Circle up to 10 business days to make a credit decision before showing the deal to other lenders.
*Under the Legacy Program, Referral Partners have the opportunity to increase their commission as described below.
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“With Funding Circle, I have an ongoing relationship with great people whom I
enjoy working with. The product is top-notch, and my questions are always
answered quickly. “
Bernard WhitleyBW Capital Solutions, Funding Circle Partner
Additional benefits available if Referral Partner…
• Attends six core teach-in webinars (hosted every Wednesday at 1pm PT)
• Funds more than $1M in loans on our platform in current calendar year
• Funds more than $2M in loans on our platform in current calendar year
Legacy Program• Increase to 1.75% - 2.00% commission
• Access to additional resources
• Priority underwriting status
Premier Program• Access to additional resources
• Priority underwriting status
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IndustriesWe lend to businesses across all industries, including food and restaurant, medical care, professional services and IT, retail and e-commerce, agriculture, construction, logistics and more. We particularly like to lend to industries that see predictable revenue streams and have controllable expenses on their profit & loss statements, like healthcare services. We also cannot lend to the below industry or business types.
Restricted industries and business types:
• Sole proprietorships
• Non-profits
• Lenders
• Insurers
• Pawnbrokers
• Pornography or adult entertainment
• Firearms dealers
• Marijuana-related business
• Real estate development
• Car dealerships where financing arm accounts for >25% of annual gross revenue
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Use of proceedsBelow are several representative examples of acceptable and unacceptable uses of proceeds for Funding Circle loans. This list is intended solely as a guide and is not comprehensive.
Acceptable uses of proceeds: Unacceptable uses of proceeds:
Working capital (supplies/materials, accrued expenses, marketing expenses, new hires, receivables gap, etc.)
Speculative ventures (e.g. property development, real estate development, commodities trading
Refinance of business debt Refinance of personal debt that does not appear on the business’s balance sheet
Equipment purchase Lending to others (e.g. auto-financing, pawnbrokers, insurers)
Inventory purchase Purchase of titled assets (e.g. used cars)
Product/service expansion Paying tax liens or dividends
Leasehold improvements Down payment to secure additional financing
Management buy-out ONLY for c-corporations that can hold treasury stock (contact your Relationship Manager for specifics)
Management buy-outs if buy-out of principal(s) increases the ownership percentage of remaining owners
Opening an additional business location (contact your Relationship Manager for specifics)
Business acquisition (contact your Relationship Manager for specifics)
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Required documents (for all applications):• 2 years of most recent business tax returns
• 1 year of most recent personal tax returns
• 6 months of most recent business bank statements
• Business debt form (template provided)
• If loan size >/ $300k, interim financials (YTD profit & loss and balance sheet)
Verification documents (as necessary)*:
• Copy of driver’s license
• Completed wire transfer form (template provided)
Our credit criteria & required documentation
Credit criteria
Borrower FICO ≥ 620
Business revenue (most recent year) ≥ $150,000
Business net income(at least 1 of the last 2 years)
≥ $0
Years in business ≥ 2 years
Bankruptcies (﹤ 7 years) or criminal activity
No prior history
Tax liens or judgments Contact for specifics
*The listed verification documents are solely included as guidance in understanding what your clients may be expected to provide as a condition of funding.
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Our simple application process
Join today! [email protected]
855-385-5356
www.fundingcircle.com/us
Apply onlineUnder 10 minutes
Hear from usWithin 2 hours
Get a decisionWithin 72 hours
Get funded!Under 10 days
Check your client’s eligibility in seconds, and complete our easy
application.
A dedicated loan specialist can help you every step of the way with
personalized service.
An underwriter will personally review your client’s application.
Once approved, your client will receive funds within days and you’ll
earn a competitive commission!
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A. Funding Circle basics1. Funding Circle is a marketplace for small business loans -- what exactly does that mean?2. Who is investing in - or buying - these loans?
B. How to get started + RP basics1. How do I get started as a Referral Partner?2. Who will be my main point of contact?3. What will I receive in commission?4. Will you invoice and collect fees that I have pre-arranged with clients?5. When will I receive my commission on the loans I refer?6. I can’t access my Referral Partner Portal -- what should I do?7. Can I create log-ins for other colleagues who work with me?8. Will you include me in communications with my client?9. Can I use Funding Circle’s logo on my website?
C. The application process1. How can I submit a loan application?2. What documents will my client need to submit as part of a complete application?3. When will you pull credit on my clients?4. Will I receive a copy of my client’s credit report?5. How can I check the status of a loan application?6. How long will it take to get a decision on a loan application?7. Once a loan is listed on your marketplace, how long does it take for the borrower to receive funding?
D. Product1. Can you make exceptions on your credit criteria?2. What is your policy on repeat borrowers?3. Is it possible for current FC borrowers to take out additional debt from other lenders?
FAQ
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A. FUNDING CIRCLE BASICS
Q1: Funding Circle is a marketplace for small business loans - what exactly does that mean?A: We have a unique platform that connects small business borrowers with institutional and accredited investors. Funding Circle acts as a marketplace to connect these two groups, both of which rely on Funding Circle to underwrite and dictate all loan terms. Loan offers are made directly to the borrower and all loans are guaranteed funding within one day of listing on our marketplace.
Q2: Who is investing in - or buying - these loans?A: Globally, more than 40,000 individuals, financial institutions, and even the UK government invest in small businesses through our platform. Here in the United States, we have a range of investors investing on the platform, which includes individuals and family offices to large global asset managers and other institutions. These investors believe in the power of successful small business development to help the American economy grow.
B. HOW TO GET STARTED & RP BASICS
Q1. How do I get started as a Referral Partner?A: To get started, you should fill out our partner inquiry form by visiting our website (https://www.fundingcircle.com/us/partner). Alternatively, email us at [email protected] or call us at 1-855-385-5356 and ask to speak to a member of our Referral Partner Team. If you are a suitable partner, we will send you our Referral Partner Agreement. As soon as you sign and return our Referral Partner Agreement, a member of the Funding Circle Team will set up your partner portal so that you can access our website and we can get started working together on deals.
Q2. Who will be my main point of contact?A: As a Funding Circle Referral Partner, you will have two main points-of-contact, who will work together to ensure you have a great experience on the platform. Your Relationship Manager will work with you at a high level, communicate major program and product changes to you and your team, discuss opportunities for
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growth, and be available for questions and to recieve feedback. Your Account Manager will be your point person on deal specifics - and, for each deal you submit, will help you chase documents from borrowers (if you want him/her to do so) and communicate loan approvals and declines to you.
Q3. What will I receive in commission?A: Your commission will vary between 1.50% - 3.00% depending on the commission structure you have chosen and the deal flow you have submitted to Funding Circle. Please refer to the commission section in your Welcome Pack and contact your Relationship Manager with any additional questions.
Q4. Will you invoice and collect fees that I have pre-arranged with clients?A: No. If you arrange additional fees with your client (as a Legacy Program Referral Partner), you will need to invoice and collect these fees yourself in accordance with applicable laws.
Q5. When will I receive my commission on the loans I refer that Funding Circle funds?A: We pay your commission at the same time we fund the loan to your client. Funds are wired by 1:00 PM Pacific Time. Depending on how quickly your bank processes the transaction, it can take 48 to 72 business hours from the date of funding for the amount to be reflected in your account.
Q6. I can’t access my Referral Partner Portal -- what should I do?A: Make sure you are on Funding Circle’s U.S. website by confirming that there is an American (not British) flag in the top-right hand corner. Then, confirm that you are using the exact log-in credentials provided to you. Remember that your password is case-sensitive, so be sure to copy and paste the exact characters into the password field. If you continue to have trouble, contact your Relationship Manager for help.
Q7. Can I create log-ins for other colleagues who work with me?A: Not yet. Currently, we are not equipped to create unique information for multiple persons in a single Referral Partner Portal. We are working on delivering this functionality, but, for now, your colleagues will either have to register as new Referral Partners (to receive their own separate partner portals) or share your partner portal with you.
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Q8. Will you include me in communications with my client?A: The way we communicate with your clients is completely up to you. Every relationship we maintain is unique. We’re happy to reach out directly to loan applicants with requests for additional documents, but we are also willing to let you manage communication with your clients yourself. To improve your clients’ chances of being funded, however, we will contact applicants directly at three points during the application process:
1) Email notification of submission. Once we have verified that the borrower passes our pre-screen checks, we will email the borrower, with you in copy, to inform him/her both of our receipt of application and to expect an underwriter’s call.2) Credit call during underwriting. Funding Circle’s underwriters often require a diligence call to learn more about your customer’s business. This is not necessary for every deal, but relatively common. Standard potential call topics covered often include, but are not limited to, the following: the use(s) of proceeds for the loan, the existing debt on the business, significant year-over-year changes on financial statements, standout items from personal financial profile, and ID protection questions.3) Delivery of loan documents. We send all of our loan documents via a third-party vendor called DocuSign. In order to create a legally-binding contract, we must send loan documents directly to potential borrowers and/or guarantors for their digitally-authenticated signature(s). We can, however, copy you on the loan documents at your request.
We find it works best if you advise us of your communication preferences as early as possible in the process.
Q9. Can I use Funding Circle’s logo on my website?As a general rule, Referral Partners and other third parties may not use the Funding Circle logo, which is a registered trademark of Funding Circle Ltd., without written permission. However, your Relationship Manager can provide you with white-label marketing materials upon request.
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C. THE APPLICATION PROCESS
Q1. How can I submit a loan application?A: Once you have access to your partner portal, you can submit applications to Funding Circle in one of two ways:
• Fill out the application yourself. Click “Start a new Loan Application” to fill out an application on behalf of your client.• Use your affiliate link. Click “Send Application Link,” copy your Affiliate Link, paste it in an email (or on your website), and send to your clients. Any application submitted using this link will tie back to your account and appear on your Partner Portal dashboard.
Q2. What documents will my client need to submit as part of a complete application?A: For all applications, your client will need to submit the following in addition to completing our online application:
• 2 years of most recent business tax returns• 1 year of most recent personal tax returns• 6 months of most recent business bank statements• Business debt form (template provided)• If loan size >/ $300k, interim financials (YTD profit & loss and balance sheet)
Q3. When will you pull credit on my clients?A: We will run a soft pull on the applicant’s credit score after either you (the Referral Partner) or the applicant completes the second page of our online application (at which point we we request applicant name and address)*. We will run a hard pull on the applicant’s credit when you (the Referral Partner) or the applicant has submitted the complete online application.
*If we are unable to run a soft pull at this point, we will allow you to proceed and run a hard pull at application completion.
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Q4. Will I receive a copy of my client’s credit report?A: No, we are not able to send you or your clients a copy of your client’s credit report. Please note that when we do decline a loan application, we will send a notice of adverse action to the borrower that provides a list of up to two reasons for our decline based upon the credit report that we’ve pulled, as well as instructions for how to obtain a copy of their own credit report through Experian (or the appropriate credit agency).
Q5. How can I check the status of a loan application I have submitted?A: You can use your partner portal to sort and track applications on your dashboard. As we move the application through the process, you will see status updates in real-time. You are, also - of course - always welcome to call your Relationship or Account Manager for more detail on a specific loan application, too.
Q6. How long will it take to get a decision on a loan application?A: In almost all cases, we will be able to make a decision on a loan application within 3-4 business days of receiving the full application submission (including required documents).
Q7. Once a loan is listed on your marketplace, how long does it take for the borrower to receive funding? A: Once we list the loan on our marketplace, we will fund the loan the next day. Funds are wired by 1:00 PM Pacific Time. Depending on how quickly your and your client’s banks process the transaction, it can take 48 to 72 business hours from the date of funding for the amount to be reflected in your accounts.
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D. PRODUCT
Q1. Can you make exceptions on your credit criteria?A: Unfortunately, no. Because we are a marketplace lender, we have to consider the investors on the other side of the platform who are buying these loans. We guarantee that all of our listed loans meet at least our minimum pre-qualification credit criteria (as listed below), which is why we cannot make exceptions to these criteria.
• Borrower FICO > 620• Operating history of at least 2 years• Business revenue of at least $150,000 in the most recent tax return year• Profitable (business net income > $0) in at least 1 of the prior 2 years• Not a sole proprietorship or non-profit• No more than 4 active tax liens on the personal or business side in the last 10 years, no bankruptcies (personal or business) in the last 7 years; no criminal activity
Q2. What is your policy on repeat borrowers?A: We are able to consider making a second loan to a Funding Circle borrower if both (a) at least 6 months have passed since the borrower took out his/her first Funding Circle loan and (b) the borrower has not been late or delinquent on a payment.
Q3. Is it possible for current FC borrowers to take out additional debt from other lenders?A: Per our loan documents, we require that you or your client make us aware before the borrower take out any additional debt. Funding Circle was founded by small business owners, and, as a result, we are passionate about working with our borrowers to ensure that they have the appropriate amount of capital and resources to grow their business.
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Contact usWe look forward to working with you! If you have any additional questions or would like to discuss our platform, product, or company in more depth, please contact us.
Mike RabilVice President, [email protected] 415.726.2216 (direct)
Brian SolowaySenior Manager, [email protected] 415.738.8039 (direct)
Nick RockwellSenior Manager, [email protected] 415.299.8654 (direct)
Teddy AugustineRelationship [email protected] 415.231.6323 (direct)
Ronjohn DaddSenior Relationship [email protected] 415.463.1076 (direct)
Shivani DasaniRelationship [email protected] 650.753.2101 (direct)
Katie DavisRelationship [email protected] 415.591.7789 (direct)
Porter DrakeRelationship [email protected] 415.213.2655 (direct)
Jessica EvansRelationship [email protected] 415.520.3454 (direct)
Devon FalveySenior Relationship [email protected] (direct)
Jay KeswaniBusiness Development Rep
[email protected] 650.753.2196 (direct)
Derek NutleySenior Relationship [email protected] 415.967.7541 (direct)
Chris RisiRelationship [email protected] 415.508.4676 (direct)
Jordan SegueRelationship [email protected] 415.494.8622 (direct)
Destinie SlavichRelationship [email protected] 415.231.6335 (direct)
Noah SmithBusiness Development [email protected] 650.753.2122 (direct)
John VerdonRelationship [email protected] 415.985.8506 (direct)
Calley WeinerRelationship [email protected] 415.726.2174 (direct)
Bart Witmer Relationship [email protected] 415.299.8252 (direct)
Funding Circle747 Front Street, Floor 4, San Francisco, CA 94111
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Buildinga betterfinancialworld.
