Thousands more businesses now have access to potential loans from Funding Circle, after the crowdfunding platform expanded its eligibility criteria.
Until last week only limited companies could apply for loans through the site. Now, though, Funding Circle has opened its application process up to non-incorporated businesses.
Sole traders and unincorporated partnerships will be able to borrow from £25,000, compared with the lower limit of £5,000 for limited companies. The criteria that applicants must fulfil will be similar, with sole traders and partnerships being expected to present a good credit history. Applicants with CCJs of more than £250 will not receive a loan. Sole traders and partnerships will then be banded into risk categories from A+ to C-, as are incorporated businesses.
The news follows suggestions that Funding Circle could be in talks with Santander to expand the pair’s business lending operations. The Telegraph claimed last month that the bank could be prepared to pass on to Funding Circle business applicants that do not meet its criteria, and that Santander could be moving to grow its business lending through the peer-to-peer platform.
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
22 June 2020 • 9-minute read
How to start a clothing business. It can be an all-consuming process but with that first sample run and customer sale comes great…
6th Floor99 Gresham StreetLondonEC2V 7NG
Sol House29 St Katherine's StreetNorthamptonNN1 2QZ
© Copyright 2021 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.