The Funding Circle is a new business system based on an online market place where people act like banks for the small businesses. Basically, individuals become lenders for some companies, without the bank to intervene. And, as nothing is for free in this world, the lenders get an interest fee that can go up to 6-9%.
Why is Funding Circle preferable instead of lending from the bank? Because due to the nature of the Funding Circle, there aren’t too many taxes that must be paid, and also, from the perspective of the individuals, they have access to all their money 24 hours per day, 7 days per week. Also, they can withdraw their money by selling their parts to other lenders that are looking forward to making some good deals, and that is because, the total loan that is given to a firm, is made from multiple parts belonging to multiple lenders. Therefore, this business can’t go wrong at all. After all, the worst thing that can happen is to loose a small amount of the sum that was invested, but not all of them. Though, there is a sum that can go up to $30000 that is practically guaranteed.
Why should anyone pick the Funding Circle to invest their money or just to lend some money for their business? Well, according to the chairman of the Funding Circle, Laurie Edmans and to Yasmina Siadatan, founder member and top lender at Funding Circle- with the mention that she won the show “The Apprentice”, there are several motives and here they are.
First of all, it is easier for a company to obtain a lend. As well, the investor’s revenue is a bit bigger than the normal deposit, and even more, investors can get out of the business whenever they want, by selling their rights to others lenders.
As concerning the investors, they can decide on their on whom to give the money and why, as well as they can form groups of investments, groups that will have only a domain of investment. Luckily, most of the businesses are granted by a group of private investors, and therefore there isn’t a major risk of loosing the money.
And, as the Funding Circle is at its start, it has a special offer. Those who’ll enter in this business in the next month, will receive a 2% cash back, no matter what. As well, no fee will be paid, just as a welcome bonus.
Basically, the Funding Circle will act like the Hand Of God in this business as it will help the small businesses especially now, when we’re facing a tough economical crisis. By keeping the interest fee for the companies much lower than the ones that are practiced by the banks, the Funding Circle is the only way for a small company with financial problems to survive the economical crisis. So, now it’s the perfect time to invest in a special and new business, business that will soon be proved to be the business of the century.