Business loans at Funding Circle

A step-by-step guide to borrowing

STEP-BY-STEP GUIDE TO BORROWING

Business finance tailored to youGetting finance to take the next step for your business is now fast and hassle free. So you can stay focused on running your business, you can apply anytime online in just 10 minutes, you’ll then get a dedicated account manager and a decision typically in 24 hours.

We help established businesses of all sizes with flexible loans for a wide range of purposes. So whatever your next goal is, just tell us how we can help when you apply.

ContentsLoan types and eligibility 3

Your loan application 4

Your application is approved - what next? 5

How your loan is funded 6

Rates, fees and interest 6

Repaying your loan 8

Further information 8

94% of customers would come back to us first

STEP-BY-STEP GUIDE TO BORROWING

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Loan types and eligibilityYou can borrow anything between £5,000 and £1,000,000, repayable over 6 months to 5 years. To help you get the right loan for your business, we have two different loan types.

Unsecured loans up to £350,000

Our most popular loans, these are fast, highly flexible loans that can be used for almost any purpose. As you don’t put down assets as a security, no valuation is needed when you apply, so we can give you a decision typically within 24 hours.

We do, however, require a personal guarantee from the business shareholder(s). Unlike other lenders, we do not charge higher rates for unsecured loans.

Secured loans up to £1 million

Although not as fast, secured loans can allow you to borrow more for your business by using assets as a security. Also available for almost any purpose, typically we will take a charge over all assets of the business as security. A personal guarantee is also required.

Learn more about our loans and the types of security we accept at fundingcircle.com.

Please note, we do not offer loans for the purposes of property development or to money lenders.

You can apply if your business has:

� 2+ years of trading history

� At least 1 year of filed or formally prepared accounts

� No County Court Judgments (CCJs) registered in the last 12 months, with no outstanding CCJs larger than £1000

� UK ownership and resident directors: majority that are UK resident

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Your loan applicationApply online at a time that suits you, and you’ll have the support of a dedicated account manager to guide you throughout.

Apply online in 10 minutes

Here’s what you can expect when you apply:

Dedicated account manager

If you have any questions at any stage, your account manager will be able to help.

Fast decision

Once you’ve completed all of the above, you’ll get a final decision on your application typically within 24 hours.

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Check your eligibility – Enter a few details about your business in our 30-second form.

Create your profile – Save your application by providing a few simple details about you.

Get your quote – Tell us about your business, its owners and what your loan is for. You’ll get a range of repayment options so you can pick the best for you.

Submit your documents – Click ‘Submit application’ then upload or email your supporting documents so we can assess your application.

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Your supporting documents

You can upload your documents online, or email them to credit@fundingcircle.com. You will need:

� Most recently filed or formally prepared accounts

� Last three months of business bank statements

If you’re not sure where to find your documents or how to download online bank statements, your account manager will be able to help and provide easy-to-follow guides.

We may also request management accounts, depending on the age of your most recently filed/formally prepared accounts. Other supporting documents may also be requested for certain products, or at the discretion of our Credit team.

Your application is approved – what next?Sign your documents

Our credit team will email you the details of any further documents which we require for your loan, with details of who needs to sign them. Most loans will require a personal guarantee or other security agreement.

Agree to the loan contract

Your loan contract will be displayed online for you to review. You should also download the contract for your records. To agree to the contract, put a tick in the checkbox below the contract and then click ‘Accept terms’.

Enter your bank details

We need your bank details to transfer the funds to your business bank account, and set up the direct debit repayments.

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How your loan is fundedYour loan will be funded by the community of investors who lend to businesses through our platform. They include over 63,000 people, local and national government, and financial organisations. Your loan may be funded by lots of individuals lending small amounts, or by one organisation.

How it works

Once we’ve received your documents and you have agreed to the loan contract and set up your direct debit, your loan is made available to investors.

Usually it is funded and transferred to your account in just a few days; however, it can take up to 7 days. We’ll send you an email confirmation once your loan is funded, and you can log in to track its progress online.

Rates, fees and interestLoans are typically repaid in fixed monthly instalments and the cost is determined by two factors:

Your interest rate

When we assess your application you’ll be given a risk band. Your risk band and the term of the loan helps determine your interest rate.

Your fee

You only pay one fee when you take out your loan, and only if you decide to accept it. There’s no cost if you decide not to progress with your application.

£2.5 billionlent to UK businesses

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Your fee is based on your risk band and loan term

For example, say you apply for an unsecured loan of £50,000 over 3 years, and your business is given an A+ risk band. You would then pay a fee of 3.5%.

This means you will receive £50,000, and you will repay this plus the fee and interest over the course of your loan.

If you go on to take out further finance with us or refinance, you will be charged a fee each time.

Example for new borrowing

Based on a £50,000 loan over 3 years, repaid in 36 fixed monthly payments:

Rate Cost

Loan amount £50,000

Fee 3.5% £1,750

Interest (Indicative only) 5.3% per year £4,337.06

Total cost £56,087.06

Monthly repayments £1,557.97

Your monthly repayments will consist of principal outstanding and interest. The interest is based on the principal outstanding, so decreases as a proportion of the repayment over the loan term. If a loan is repaid early the interest charges will be lower. Find out more below.

If for some reason you are unable to make your monthly repayment on time, we may charge an administration fee of up to 15% of the repayment amount. If your loan is placed into default, we may charge an additional collections charge of up to 15% of the outstanding loan amount at the time of default.

Loan term

Risk band 6 months 1 year 2 years 3 years 4 years 5 years

A+ 1.5% 2.5% 3% 3.5% 4% 4.5%

A 2% 3.5% 4% 4.5% 5% 5.5%

B 2% 4% 4.5% 5% 5.5% 6%

C 2.2% 4.5% 5.5% 6% 6% 6%

D 2.7% 5.5% 6% 6% 6% 6%

E 3% 6% 6% 6% 6% 6%

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Repaying your loanLoans are repaid in fixed monthly instalments via direct debit over the term you choose.

Payment date – important note

The repayment date on your contract will fall one calendar month from when your loan request closed. The direct debit is taken 5 working days before this date, so we can ensure payments are made on time to the investors who lent to you.

Repay early with no fee

You can pay off your loan early at any time with no fee. You’ll only pay interest on the time you borrowed, so if you pay back early, you pay less.

Simply pay the outstanding balance on your loan, including interest owed for that month.

Apply for further finance

We want to help your business continue to grow and develop, so you can apply for further loans through Funding Circle. You can borrow again for the same purpose, or for something completely different.

Those with great repayment histories can apply again in as little as 3 months. Contact our Existing Borrower team at priority@fundingcircle.com.

Further informationIf you have any questions on Funding Circle loans, take a look at our help centre at support.fundingcircle.com or call us on 0800 048 8747 and we’ll be happy to help.

We hope our finance can help you take the next step forward for you and your business.

The Funding Circle team

Funding Circle Limited is authorised and regulated by the Financial Conduct Authority under firm registration number 722513. Funding Circle is not covered by the Financial Services Compensation Scheme. Registered in England (Co. No. 06968588) with registered office at 71 Queen Victoria Street, London, EC4V 4AY.