Peer to peer lender Funding Circle has fired up their new risk tiers that were previously announced this past May. Funding Circle connects accredited investors with small business owners in need of funding. Traditionally these borrowers have had greater difficulties in finding loans. The new tiers are expected to boost growth in their business further. The company targets loans from $25,000 up to $500,000.
Funding Circle stated;
“Today hundreds of thousands of American small businesses who have traditionally lacked access to the finance they need to grow will now be eligible for a Funding Circle loan with the launch of our new ‘C’ risk band. In fact, we’re excited to announce the new band will allow us to serve around 25% more of the small business owners who apply for loans with us.”
“The new band was designed for creditworthy small businesses that previously didn’t qualify for our current term loan product – particularly those who are earlier on in the development of their business. Here are some examples of the types of businesses who may now qualify for a loan with Funding Circle”
The new risk bands are as follows:
- 3 Year: 9.99% to 18.49%
- 4 Year: 10.99% to 19.49%
- 5 Year: 12.49% to 20.99%
The “C” bands are viewed as an opportunity for investors who are more risk tolerant and are seeking higher rates of return.
Funding Circle, launched in the United Kingdom, has since invaded the shores of the United States. The company has financed over $500 million in loans since its founding in 2010 and claims the title of the “largest P2P lender focused exclusively on small business”.