debt


James Meekings, co-founder, Funding Circle


To apply for a loan through Funding Circle, businesses complete a short application form, which takes approximately 30 minutes. Here they provide information about their


business, including key financial details,


management structure of the business and number of staff employed. Any business looking to borrow money must be a limited company with at least two years’ worth of accounts posted with Companies House, and have a strong credit score. Companies don’t need high-value assets to get finance. Instead, we allow businesses to borrow based on the quality of the business. Once a business has been approved, business owners post their loan request page which explains why the business is looking for finance and what it will do with the money. People lend small amounts to lots of different businesses to spread their risk. Rates are set by investors themselves who bid to become


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Back to contents Tips on raising debt


part of the loan by offering an interest rate on their cash. Unlike most banks there is no early


repayment fee, the fee structure is simple and money can be borrowed quickly. Businesses can also keep their identity hidden if they want. Banks will always exist, in one form or another,


but they are no longer the cure-all for every requirement a business now has. Increasingly owners are becoming aware that there is genuine choice when it comes to looking for finance, and that they no longer need to have a one-way relationship based on exclusivity with their bank. Spend time assessing what type of finance


your business is best suited to. Funding Circle only lends to limited companies with at least two years’ worth of accounts. If your business is a start-up, then alternative finance, such as equity investment, might be a better solution. For smaller businesses that are more dependent on the owner, we may request personal guarantees. These are not secured against particular personal assets but they are overarching guarantees from a director. n


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