iBusiness Funding (Formerly Funding Circle) Business Loans Review

Pros and cons of iBusiness Funding

iBusiness Funding small business loans review

iBusiness Funding is an online business lender that has historically focused on SBA loans. But in mid-2024, iBusiness Funding purchased Funding Circle, a marketplace lending platform known for its fast and affordable financing.

With the expertise of both companies, iBusiness Funding now offers a wider range of financing options, including business term loans, SBA loans and USDA loans. With an iBusiness Funding term loan, you can borrow up to $500,000, with extended repayment terms giving you up to seven years to repay the debt. Your funds may be available in as little as two business days.

This is one of the biggest advantages of a loan from an alternative lender, as traditional financing can take weeks or months to come through. But borrowers often pay a hefty price for fast funding, with high interest rates driving up the cost of borrowing. While iBusiness Funding may not be the fastest lender on the market, it offers lower rates than many of its online competitors, which may allow you to find a balance between speed and affordability.

Plus, while working with traditional lenders can require a lengthy, slow-moving application process, getting a loan with iBusiness Funding may be much easier. Simply fill out an online application and your business will be considered for the full range of iBusiness Funding’s financing options — your designated lending agent will help you find your best option.

With no application fee, no hard credit check and no requirement to actually accept a loan offer, you can find out what you qualify for with little risk, and then decide whether the terms of your loan are a good financial fit for your business.

iBusiness Funding small business financing at a glance

Term loans

iBusiness Funding offers quick business loans from $25,000 to $500,000. Repayment terms range from 6 to 84 months, with no penalties for repaying your debt early. Your funds can be used for a variety of purposes, including purchasing supplies, investing in new equipment and covering regular business expenses.

The starting interest rate for iBusiness Funding’s term loans is , which is slightly lower than the average for this loan type. Note that iBusiness Funding’s annual percentage rate (APR), which represents the total cost of borrowing with fees, can range from 15.22% to 45.00% APR. However, you won’t know your exact rate until you apply.

SBA 7(a) loans

As a subsidiary of Ready Capital, the No. 4 SBA Preferred Lender in the country, iBusiness Funding has processed over $7 billion in SBA loans to date. SBA loans are backed by the U.S. Small Business Administration, reducing the lender’s risk and making financing more attainable for small business owners.

iBusiness Funding offers both regular SBA 7(a) loans and 7(a) small loans, which means you can get between $10,000 and $5,000,000, with repayment terms ranging from 120 to 300 months, depending on what the loan is used for.

Although the SBA caps interest rates to keep loan payments relatively low, the exact rate you pay will depend on the lender and the loan amount. Keep in mind that rates may be fixed or variable, and collateral may be required to secure loans over $50,000.

USDA loans

The U.S. Department of Agriculture (USDA) provides a partial guarantee to lenders offering small business loans in rural areas. These government-backed loans can be used for development, real estate and more. With a USDA loan, you may be able to borrow up to $25,000,000. Loan terms last between 84 and 360 months, giving you plenty of time to repay your debt.

USDA loans are available for businesses in areas with populations less than 50,000. To qualify, you will also need to meet the lender’s minimum credit score and annual revenue requirements. Note that iBusiness Funding’s USDA loans are originated through a network of approved lenders, meaning they’re not directly funded by iBusiness Funding. The interest rate you pay will be negotiated with the lender, though the rates you’re offered will depend on your financial situation. Rates may be fixed or variable, and variable rates may not be adjusted more than once per quarter.

iBusiness Funding borrower requirements

To get a business loan from iBusiness Funding, you’ll need to meet the lender’s loan requirements. For term loans, this means you will need a minimum credit score of 640. Your business will also need to have operated for a minimum of two years, with an annual revenue of $50,000 or higher.

However, it’s important to note that SBA loans and USDA loans may require collateral. Acceptable forms of collateral include equipment, vehicles and inventory. If you default on your loan, iBusiness Funding can seize these business assets. You may also be required to sign a personal guarantee, which makes you personally responsible to repay the loan if the business fails to make payments.

Required documents

To check if you meet its business loan requirements, iBusiness Funding will request certain documents, including:

• Bank statements: Six most recent months
• Personal tax returns: Most recent year from all owners with 20% equity or more in the company
• Business tax returns: Two most recent years

Alternatives to iBusiness Funding

iBusiness Funding vs. OnDeck

OnDeck is another online lender that provides short-term loans up to $250,000 and lines of credit up to $100,000. Although this is less than what you may be able to get with iBusiness Funding, OnDeck’s financing options come with a few perks. Most notably, the lender offers fast funding on loans of $100,000 or less, allowing you to potentially receive your funds on the same day you apply.

Unlike iBusiness Funding, OnDeck only requires businesses to be in operation for one year to be eligible for financing. It also has a slightly lower credit score requirement, approving applicants with scores as low as 625.

However, your business will also need a minimum annual revenue of $100,000 to qualify. It’s also worth noting that high interest rates and other fees will drive up the cost of borrowing, with a starting APR of 27.30% on term loans. This is the lowest APR offered to at least 5% of customers, not the absolute lowest rate offered . Still, OnDeck may be a good option for businesses who need quick funding to cover unexpected expenses or take advantage of a limited-time business opportunity.

Read our OnDeck review.

iBusiness Funding vs. Fundbox

Startups and low-credit borrowers may struggle to qualify for financing through iBusiness Funding. If you’re drawn to the speed and accessibility of iBusiness Funding but you don’t meet the lender’s minimum time in business, annual revenue or credit score requirements, Fundbox might be a good alternative.

Fundbox only requires three months in business, $30,000 in annual revenue and a credit score of 600 to qualify. Borrowers who meet these requirements may be able to access a business line of credit up to $150,000 in as little as one day.

Fundbox’s starting interest rate is 4.66% for 12-week terms or 8.99% for 24-week terms. This may be lower than the rates you’ll find with iBusiness Funding, though shorter loan terms will increase your cost per payment, so you’ll need to make sure you can afford the daily or weekly payments before committing to a loan.

Read our Fundbox review.