The Funding Circle has recently widened its credit criteria and simplified its loan application process with the aim of helping more small businesses access finance.
The threshold for loans without asset security has been increased to £200,000 with additional funds also being granted in exceptional circumstances.
Either a personal guarantee for the director/s or some security will be taken for all loans, however the credit team now have more flexibility to assess this on a case by case basis. The minimum annual revenue of £100,000 has been reduced to £50,000 to cater for an increasing number of businesses with lower turnover and a high profit margin, who are looking for finance.
Improvements to the application process have also been made. Previously, all businesses had to submit management accounts when applying for a Funding Circle loan. This was often a lengthy and expensive process for those businesses that did not typically produce them. This requirement has now been amended and business now only need to provide recent bank statements (about 3 months).