Invest in American small businesses

Join hundreds of investors, including individuals and institutions

  • Over $9 billion invested globally
  • Grow your portfolio with Auto Invest
  • Support American businesses
  • 1% annual servicing fee1
  • BBB Accreditation
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How it works

Funding Circle connects creditworthy businesses looking for finance with people and organizations looking to invest. As an investor, you help fund financing to established, American small businesses through the purchase of Notes issued by Funding Circle Notes Program, LLC and privately placed by Funding Circle Securities LLC, member FINRA/SIPC (check our background on FINRA’s BrokerCheck).

Small businesses receive the funds they need to grow, and you can earn attractive returns through monthly installment repayments over the terms of the loans, which could be up to 5 years.

Investors

Investors use their online account to easily lend to hundreds of businesses looking to borrow.

Funding Circle

We review applications and approve creditworthy businesses. We then pay out their loans and process repayments for investors.

Businesses

Businesses make fixed monthly repayments with interest, which we distribute to all the investors who lent to them.

Why Funding Circle?

Funding Circle’s small business loan marketplace is trusted by over 85,000 global investors, including individuals, national banks and governments.

Tested model

To date, investors have lent over $9.5 billion to 68,000 small businesses globally. Funding Circle is the leading lending platform in all of the geographies in which it lends.

Invest alongside institutions

You can invest in the same assets available to major institutional investors including banks, asset management companies and funds.

Historical annual returns of 5 - 7%

Historical annual returns are calculated as the sum of interest paid, minus the 1% servicing fee and defaults, plus recoveries, relative to the principal amount. They represent the range of annualized net yields as of March 31, 2019 for small business loans originated by FC Marketplace, LLC during 6-month intervals in calendar year 2017.

Average returns for all loans originated by Funding Circle from inception from February 27, 2013 to March 31, 2019, total 5.3% per year. Notes are dependent for payment on corresponding loans randomly allocated to Funding Circle Notes Program, LLC and are representative of all loans originated by FC Marketplace, LLC. Please note, past performance is not an indication of future results. Historical returns are calculated in respect to cohorts of loans of which many loans have not fully matured; lifetime returns will vary depending on future loan repayments and defaults.

Access to a growing asset class

The Funding Circle platform gives you direct access to small business loans as an asset class. Diversify your investment portfolio, reduce exposure to volatility in the stock market and gain access to the $800 billion small business lending market with new loans listing daily.

Are you representing an institutional investor? Learn more

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Invest with ease

Sign up and fund your account

Once you’ve signed up for an account with Funding Circle Securities LLC and we’ve verified your accredited investor status, you can securely connect your bank account. You can then transfer a minimum of $25,000 into your investment account. Your funds will be ready to invest in five business days.2

Invest in loans

Funding Circle funds loans for small businesses and makes them available to you as fractional notes, representing portions of the loan. Our Auto Invest tool will automatically invest your money in creditworthy small business loans. Or, if you prefer, you can choose individual Notes in our pick-and-choose marketplace. Put as little as $500 into each fractional note using Auto Invest or the pick-and-choose marketplace.

Track your investment performance

Borrowers repay loans through fixed monthly payments. As a fractional notes investor, you will receive shares of each payment on corresponding loans (net of the servicing fee). Log into the investor portal via web or mobile app (iOS or Android) at any point to see how your investments are performing and get summarized statistics for your portfolio.

Reinvest your earnings

As long as you keep Auto Invest active on your account, your repayments will be continuously reinvested in newly issued Notes. This helps your interest to compound, maximizing your return. Our tool will automatically continue investing, ensuring your money is being put to work for you.

One low fee

1% annual servicing fee deducted from loan repayments, so you only pay when you earn

No management, brokerage account, or transaction fees

No charges to deposit, transfer or withdraw funds (please note that withdrawals are restricted to uninvested funds)

For more information, visit our FAQ

I needed to find a lender that actually believed in my ability to be a fruitful entrepreneur… now business is booming.
Dr. Celina Hatt, Funding Circle borrower

Looking to expand her operations, Dr. Celina Hatt at Mid-valley Veterinary borrowed to purchase a second location.

This testimonial may not be representative of the experience of other borrowers; nor is this testimonial a guarantee of future performance or success.

How we manage risk

As a Funding Circle investor, you invest in financing for established small businesses alongside banks and other financial institutions. Only businesses who have passed our rigorous credit assessment process can borrow through Funding Circle.

However, it’s important to remember that some businesses will not be able to fully repay their loan. We call this a bad debt. Funding Circle reduces the impact bad debt has on your return in 3 important ways:

1. Rigorous assessment with advanced technology

Funding Circle's credit assessment team includes decades of experience from some of the world’s leading financial institutions. They use thousands of data points, machine learning technology and their detailed understanding of business lending to assess every application, so only creditworthy businesses are approved. Funding Circle takes numerous measures to validate credit data. However, even with these efforts credit information of a borrower may be inaccurate or may not accurately reflect the borrower’s creditworthiness. Any such inaccuracies may be manifested in payment defaults on the corresponding fractional notes.

2. Diversification and minimum investment

Diversification, where you spread your investment across many businesses, can help you earn a stable return. To help you build a well diversified portfolio, we require an investment of $25,000 or more, and that no more than 2% of your total funds are invested in any one note.

3. Funding Circle fully services its loans

When a business is unable to fully repay their loan, Funding Circle handles everything for you. Funding Circle’s collections and recoveries team works to recover as much as possible for you.

Please consider, Notes are only deemed suitable for Accredited Investors, as defined by Rule 501 of the Securities Act of 1933, who are familiar with and willing to accept the higher risk associated with private investments. These securities are not publicly traded and are subject to holding period requirements; investors will not be able to access principal invested in Notes until and unless scheduled repayments are made. Any investment in Notes is subject to various risks due to, among other things, interest rate risk, credit risk and regulatory risk, none of which are outlined here. Such risks are discussed in confidential offering materials and related documents (the “Offering Materials”). Investing in private placements offered by Funding Circle Securities requires a high risk tolerance, low liquidity concerns and long term commitments. Investors must be able to afford to lose their entire investment. Carefully consider the investment objectives, risk, charges and expenses of any investment product prior to investing.

Help American businesses thrive

Invest with purpose. Your investment creates jobs and makes an impact in the real economy. You invest in financing to hundreds of established, creditworthy businesses in different sectors and regions throughout the U.S. Whether they need a new storefront, a better website or an extra pair of hands, your investment will help them grow, create jobs and drive the economy forward.

AVERAGE BUSINESS PROFILE:3

  • 11 years old (no startups)
  • $1.43 million in annual sales
  • 12 employees

Michael Parnell from New Jersey borrowed $300,000 to grow his team and expand his development projects.

38,000 U.S. jobs
Created and sustained in 2018
$2.8 billion
Contributed to U.S. economy

'The economic impact of lending through Funding Circle' research commissioned by Funding Circle from Oxford Economics, June 2018

Our commitment to trust and transparency

Trust

We’ve earned an A+ rating with the Better Business Bureau.

BBB Accreditation

Transparency

We take a proactive stance towards compliance and regulation, fighting for a fairer and more transparent lending industry through the Responsible Business Lending Coalition and the Small Business Borrower Bill of Rights.

Funding Circle allows investment in U.S. small business loans on its platform through private placement of notes (“Notes”) by Funding Circle Securities, LLC (“Funding Circle Securities”), member FINRA/SIPC. Notes are issued by Funding Circle Notes Program, LLC (“Funding Circle Notes Program”) and are promissory notes that are dependent for payment on payments that Funding Circle Notes Program receives from corresponding business loans originated by an affiliate. Funding Circle Securities only offers investment products and securities of its affiliates.

No communication, through this website or in any other medium, should be construed as a recommendation for any security offering. This website provides general and preliminary information about securities offered by Funding Circle Securities and is intended for initial reference purposes only. It is not a summary or compilation of all applicable information and is not complete. This website does not constitute an offer to sell or buy any securities by Funding Circle Securities. There shall be no offer or sale of any securities without the delivery of the Offering Materials. The information contained herein is qualified by and subject to more detailed information contained in the Offering Materials.

1 A 1% annual servicing fee based on the unpaid principal balance of outstanding loans underlying corresponding Notes is deducted monthly from borrower repayments. No other fees are assessed to investors.

2 Investors must receive and agree to the terms and conditions and to having read and understood the Offering Materials, including all material risks, as a prerequisite to opening an account with Funding Circle Securities.

3 Characteristics of previous and current U.S. borrowers as of March 31, 2019.