Frank vs Funding Circle — US Alternative | Frank

Frank vs Funding Circle:
Same SBA program. No 4.49-10.49% origination fee deducted from your check.

Funding Circle (now owned by iBusiness Funding) is one of the few online lenders offering SBA 7(a) loans. The application is fast, the brand is established. But the origination fees are large, the eligibility bar shuts out newer businesses, and most operators don't realize Frank can route them to the same SBA-approved bank network, without that fee structure, in 72 hours, with $0 fees from Frank.

Frank vs Funding Circle:
Same SBA program. No 4.49-10.49% origination fee deducted from your check.

Funding Circle (now owned by iBusiness Funding) is one of the few online lenders offering SBA 7(a) loans. The application is fast, the brand is established. But the origination fees are large, the eligibility bar shuts out newer businesses, and most operators don't realize Frank can route them to the same SBA-approved bank network, without that fee structure, in 72 hours, with $0 fees from Frank.

TL;DR

Funding Circle is a strong option for established businesses (2+ years, 660+ FICO) who want SBA 7(a) access through an online platform. Their term loan APRs (15-50%) are bank-territory expensive, and their origination fees of 4.49-10.49% mean a $100K loan delivers $89,510-$95,510 to your account. Frank routes you to the same SBA-approved bank network without that fee structure — and 1-year-in-business operators can apply (Funding Circle requires 2+).

Side by side

Frank

Frank

Funding Circle

Frank

Funding Circle

Ondeck

Type

Type

Free brokerage — we only work with banks

Free brokerage — we only work with banks

Direct online lender + SBA preferred lender

Direct online lender + SBA preferred lender

Cost to you

Cost to you

$0 — we're paid by the bank when your loan closes

$0 — we're paid by the bank when your loan closes

4.49%-10.49% origination deducted from proceeds

4.49%-10.49% origination deducted from proceeds

Bank term loans

Bank term loans

From 6% APR

From 6% APR

15.22%-50.24% (median ~30%)

15.22%-50.24% (median ~30%)

SBA 7(a)

SBA 7(a)

From 9.75% APR

From 9.75% APR

Prime + 2.75-4.75% (~10-13%) plus origination fee

Prime + 2.75-4.75% (~10-13%) plus origination fee

SBA 504 (real estate)

SBA 504 (real estate)

From 5% APR

From 5% APR

Not offered

Not offered

Equipment financing

Equipment financing

From 6% APR

From 6% APR

Yes, via SBA

Yes, via SBA

Invoice financing

Invoice financing

From 1% per period

From 1% per period

Not offered

Not offered

Loan sizes

Loan sizes

$25K-$5M

$25K-$5M

Term: $25K-$500K; SBA: up to $5M

Term: $25K-$500K; SBA: up to $5M

Pre-approval

Pre-approval

3 minutes

3 minutes

Six-minute application

Six-minute application

Time to fund (Term)

Time to fund (Term)

As fast as 72 hours

As fast as 72 hours

2-3 days

2-3 days

Time to fund (SBA)

Time to fund (SBA)

30-90 days (standard SBA timeline)

30-90 days (standard SBA timeline)

13 days-3 months

13 days-3 months

Origination fee

Origination fee

$0 to borrower

$0 to borrower

4.49%-10.49% deducted from proceeds

4.49%-10.49% deducted from proceeds

Min FICO (Term)

Min FICO (Term)

640

640

660

660

Min FICO (SBA)

Min FICO (SBA)

640

640

640

640

Min time in business

Min time in business

1 year

1 year

24+ months

24+ months

Min annual revenue

Min annual revenue

$120K ($10K/month)

$120K ($10K/month)

$50K

$50K

Available

Available

All 50 states

All 50 states

All except Vermont

All except Vermont

Repayment

Repayment

Monthly

Monthly

$0 Fees. Always

Frank charges you $0. Funding Circle deducts 4.49%-10.49% from your loan before you see it.

If you borrow $100,000 from Funding Circle, you receive $89,510-$95,510. But you owe interest on the full $100,000. That's a $4,500-$10,500 surcharge on top of the headline rate. Frank doesn't charge borrowers anything, the bank pays our commission when your loan closes.

What Funding Circle does well

What Funding Circle does well

Funding Circle has been around since 2010. They've connected over 135,000 small businesses with more than $20 billion in financing. The US business was acquired by iBusiness Funding (a Ready Capital subsidiary) in June 2024 and continues to operate under the Funding Circle brand.

Real SBA access through an online platform. Most online lenders don't offer SBA loans because the program has strict requirements and slow approval cycles. Funding Circle is one of the few that genuinely participates as an SBA preferred lender, which means faster processing and an in-house path through the SBA bureaucracy.

Lower SBA credit threshold than most banks. Most banks require 690+ FICO for SBA 7(a) loans. Funding Circle accepts 640. For an operator with fair-but-not-perfect credit who wants SBA terms, that lower bar matters.

Streamlined application. Six minutes to apply. Funding decisions on term loans within 24 hours. SBA decisions within three weeks (vs. months at most banks).

No prepayment penalties on any product. Pay off early and you actually save on interest. Few alternative lenders offer this.

A+ BBB rating, 4.5 stars on Trustpilot from 16,600+ reviews. Reputation is solid. The platform works.

USDA business loans for rural operators. Up to $25 million for businesses in areas under 50,000 population. Few online lenders offer USDA — for trade operators in rural markets, this is a unique advantage.

What to watch for

What to watch for

The pricing on term loans and the eligibility bar are where this gets expensive.

Term loan APRs of 15.22%-50.24% are not bank rates. Median is around 30%. A $50,000 loan at the median APR costs roughly $8,177 in interest and fees over 12 months. The same loan from a traditional bank. What Frank gets you costs $1,500-$3,750 over the same period.

Origination fees of 4.49%-10.49% are deducted from your proceeds. This is the part that catches most operators. If you borrow $100,000, you don't get $100,000, you get $89,510 to $95,510, depending on where in the fee range you fall. But you owe interest on the full $100,000. That's not just a fee, it's a higher effective cost of capital than the headline APR suggests. Most banks Frank works with don't charge origination fees of this magnitude.

Strict eligibility shuts out newer businesses. 24 months minimum in business. 660+ FICO for term loans. Their average borrower is 11 years in business with $1.4 million in annual sales. If you've been operating less than two years, which is most newer trade operators — you're locked out entirely. Frank works with banks that accept 1-year-in-business operators, particularly in trades where industry experience matters.

Recent ownership change. iBusiness Funding acquired Funding Circle's US business in June 2024. Reviews from before the acquisition may not reflect the current customer experience.

When Frank is the better fit

The fundamental question with Funding Circle is: do you actually need their online speed, or are you just defaulting to it because banks feel intimidated?

Frank matches the speed. 3-minute pre-approval. As fast as 72 hours for working capital and term loans. SBA loans follow standard SBA timelines (30-90 days) at both Funding Circle and Frank, that's the SBA program, not the lender.

You want a real SBA loan without the origination fee structure. Frank works with SBA preferred lenders directly — same SBA program, same SBA-backed rates from 9.75%, same SBA terms. But the origination fee structure on bank-issued SBA loans is typically lower (and more transparent) than the 4.49-10.49% origination fee on a Funding Circle SBA loan. On a $500K SBA loan, that fee difference alone can save you $20,000-$50,000.

You're under 2 years in business. Funding Circle won't underwrite you. Many banks Frank works with will, particularly in trades where the operator has strong industry experience even if the LLC is newer.

You want a term loan at bank rates, not online lender rates. Funding Circle's term loan APR median of ~30% is not competitive with traditional bank financing. Frank gets you to bank term loans from 6% APR. On a $250K loan over five years, that's the difference between roughly $25K and roughly $200K in total interest paid.

You need SBA 504 for real estate. Funding Circle doesn't offer SBA 504 — only 7(a). For owner-occupied commercial real estate (the "buy your shop" wealth move), SBA 504 from 5% APR is the right product. Frank routes those directly.

You need invoice financing. Funding Circle doesn't offer it. Frank brokers it from 1% per period.

You're a trade or services operator. Funding Circle is generic small business with industries from retail to professional services. Frank specializes in trades.

How to decide

Are you 2+ years in business, 660+ FICO, $50K+ revenue, and you want a term loan in 2-3 days? → Funding Circle works, but Frank gets you the same product at half the rate in 72 hours with no origination fee.

Do you want SBA 7(a) without the elevated origination fee? → Frank.

Are you under 2 years in business, or do you need invoice financing or SBA 504? → Frank.

Are you a trade operator who'd rather have a banker who understands HVAC than a generalist underwriter? → Frank.

FAQ

Is Funding Circle still operating? Yes. The US business was acquired by iBusiness Funding (a Ready Capital subsidiary) in June 2024 and continues to operate under the Funding Circle brand. The UK business operates separately. Loans, customer service, and the platform are all still active.

Are Funding Circle's SBA rates better than a regular bank? The rates themselves are similar — SBA loans are tied to Prime, so the underlying rate is roughly the same regardless of who originates. The differences are in fees (Funding Circle's origination fee is on the higher end) and product mix (Funding Circle doesn't offer SBA 504).

Can Funding Circle help me buy a competitor? Their SBA 7(a) loans can fund business acquisitions up to $5M. Frank can do the same — same SBA program, same banks — typically at lower origination cost.

What's the origination fee really costing me? On a $100K loan with a 7.5% origination fee, you receive $92,500 in proceeds, but you owe interest on the full $100K over the term. If your APR is 15% over 12 months, you pay roughly $15K in interest plus the $7,500 fee — total cost of capital ~22.5% effective. Bank financing through Frank typically lands at 6-12% effective with no origination from Frank.

Does Funding Circle offer lines of credit? Yes, $5K-$250K, but rates and draw fees aren't prominently disclosed on their site. For LOC specifically, Frank brokers bank LOCs from 7.20% APR.

Same SBA program. Better-priced bank loans. Zero fees from Frank.

Frank routes operators to SBA preferred lenders without elevated origination fees, and to traditional banks for term loans at real bank rates from 6% APR. 3-minute pre-approval. Funded in 72 hours for working capital and term loans.

Let's talk

Curious how Frank speeds up SME lending? Reach out and we’ll show you how qualified businesses and lenders connect faster.

Curious how Frank speeds up SME lending? Reach out and we’ll show you how qualified businesses and lenders connect faster.



Curious how Frank speeds up SME lending? Reach out and we’ll show you how qualified businesses and lenders connect faster.


The funding partner that gets small business lending across the line, faster, and at terms they wouldn't find on their own.

Frank arranges funding on behalf of business owners by connecting them with lenders from our panel. Frank earns a fee from the lender upon successful funding. Frank does not charge fees to business owners.

Credit decisions are subject to lender criteria and approval. Funding timelines are indicative and may vary. Frank is a US-based small business lending platform. Headquartered in New York City, New York.

Frank is not affiliated with Talk to Frank, the UK drugs advice service.


Compre to Ondeck. Compre to Lendio Compre to Bluevine. Compre to Fundbox. Compre to Fundingcircle. Compre to Biz2credit.

© Frank 2026

The funding partner that gets small business lending across the line, faster, and at terms they wouldn't find on their own.

Frank arranges funding on behalf of business owners by connecting them with lenders from our panel. Frank earns a fee from the lender upon successful funding. Frank does not charge fees to business owners.

Credit decisions are subject to lender criteria and approval. Funding timelines are indicative and may vary. Frank is a US-based small business lending platform. Headquartered in New York City, New York.

Frank is not affiliated with Talk to Frank, the UK drugs advice service.


Compre to Ondeck. Compre to Lendio Compre to Bluevine. Compre to Fundbox. Compre to Fundingcircle. Compre to Biz2credit.

© Frank 2026

The funding partner that gets small business lending across the line, faster, and at terms they wouldn't find on their own.

Frank arranges funding on behalf of business owners by connecting them with lenders from our panel. Frank earns a fee from the lender upon successful funding. Frank does not charge fees to business owners.

Credit decisions are subject to lender criteria and approval. Funding timelines are indicative and may vary. Frank is a US-based small business lending platform. Headquartered in New York City, New York.

Frank is not affiliated with Talk to Frank, the UK drugs advice service.


Compre to Ondeck. Compre to Lendio Compre to Bluevine. Compre to Fundbox. Compre to Fundingcircle. Compre to Biz2credit.

© Frank 2026

$0 — we're paid by the bank when your loan closes