Hi all,

Way off topic I know, but has anyone here used a funding circle business loan? Pro's con's etc any feed back from those who have done it, those who thought about it and those who would not, along with reasons please.

I've been offered a business and would be mad not to invest, just I don't have a stack of cash in my reserve (in fact my reserve is sitting in the garage)

Any advice as always welcomed

Thanks

Andy

[Edited on 27/1/16 by AndyW]

Andy, not borrowed from them, in fact I have a small amount invested with them, however I can tell you that their rates vary enormously depending how high a risk they see you as.

I think lowest rates are around the 8-9% mark & go up to (I think) over 20%, certainly high teens

Personally I wouldn't want to be borrowing money at anything like the higher rates unless i was massively confident that what I was using the money for was going to pay back a heckuva lot more & with a high degree of certainty

I would have thought if you would be acceptable to a bank to borrow the funds you might get a better rate with them, they don't like lending without collateral tho'................

Have you discovered Zopa? Peer to peer lending for any purpose. Excellent rates and magnificent service. You can get up to £25,000 in 24 hours. You will need a good to excellent credit history. They have been my saviour on a number of occasions connected with 31 January !

31st of January - that's a deadline with the HMRC to be avoided where possible!

I've used Funding Circle, Zopa and Ratesetter as a saver. (No more as I'm buying a house). Funding Circle paid me the highest interest by far. Zopa the least. Guess where I'd go to borrow!

If you have good credit just talk to your bank, I needed some money and was offered 3.6% Apr at Barclays for £7,500 over three years, I wanted less cash but the rates went up to 5.9% for less money, this was the tipping point.

I only wanted to extend my overdraft by a couple of month for a lot less money but with a full settlement being one months interest so this was far cheaper. I'll just poke the spare into a savings account and square off in three months.

My daughter was offered 23% Apr from Halifax

[Edited on 28/1/16 by mark chandler]