Former peer-to-peer lending giant Funding Circle has updated its business loan offering by increasing loan amounts, offering shorter repayment terms and increasing the commission for introducers.
The business lender has focused on offering government-backed loan schemes since the start of the pandemic, but with the end of the stimulus loan scheme (RLS) it has updated its loan terms to businesses “so that small businesses can always access the fast, hassle-free financing they need”.
Under government loan programs, companies were limited to loans worth no more than 25 percent of their turnover. However, Funding Circle will now allow business owners to apply for loans of up to 60% of their annual turnover.
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Borrowers will also be able to apply for shorter loan terms of six or 12 months, instead of the previous minimum of two years.
“This is great news for our customers as they now have the option of accessing short-term credit, which lowers the overall cost of borrowing,” Funding Circle said.
The lending platform has also revamped its commission system and now offers a full commission to its brokers, as a thank you for all their hard work in referring more professional borrowers to the platform.
Funding Circle was one of the few P2P lending platforms to gain approval to offer the Bounce Back Loan Program and the Coronavirus Business Interruption Loan Program, as well as its successor the RLS.
The commercial lender stopped offering the RLS in mid-May.
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