Peer-to-peer lending is a growing form of financing for both borrowers and lenders. In this form of lending, individual consumers and small businesses are able to lend and borrow from each other through a number of different platforms. For borrowers, it provides a convenient and affordable way to obtain a personal loan to be used for a variety of purposes. For lenders, it provides a good return on a relatively low-risk investment.
One of the most popular peer-to-peer lending platforms is Funding Circle, which focuses on connecting individual investors and small businesses. Funding Circle has a number of different characteristics that separates it from other P2P lending options. To date, the company has funded over $2.5 billion in loans.
Flexible Loan Terms
One of the features that separates Funding Circle from other lending platforms is that it has flexible loan terms. Funding Circle allows a business to enter all of their loan term requests, which include loan amount and loan term length. Borrowers can borrow up to $500,000 at any one time and can choose a repayment term of anywhere from 12 months to 60 months.
Another benefit of getting a loan through Funding Circle is that the platform can provide an affordable loan with rates and fees the are less than loans provided by traditional lenders. Interest rates received by businesses will vary from one loan to the next, but are frequently provided for well under ten percent and are often as low as six percent. Furthermore, Funding Circle will never include nay hidden charges that are not made clear to the borrower when the term sheet is provided.
Compared to getting a loan through a traditional bank or other lending platforms, getting a loan through Funding Circle is incredibly convenient and quick. Customers that want a loan through Funding Circle will be able to apply for the loan online in as little as ten minutes. Once the application is received, the borrower will be contacted by a dedicated loan specialist who will be a liaison between the borrower and potential investors. Borrowers typically will then receive the full loan approval and commitment within just a few business days and can receive the loan proceeds within a week of the initial application.
Appeal to Lenders
While getting a loan though Funding Circle provides clear benefits to the borrowers, it is also an attractive investment option for lenders. Those that choose to invest in these loans will often receive interest rates and returns of around ten percent. Furthermore, the investments are very transparent in terms of risk and return. Each loan is carefully analyzed and underwritten by experienced professionals, which will carefully outline all strengths and weaknesses associated with every deal that makes it through the approval process.