december 2013. 2 the problem: small businesses struggle to get the loans they need to expand; they...
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Broker IntroductionDecember 2013
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www.fundingcircle.com/us
The Problem: Small businesses struggle to get the loans they need to expand; they are poorly served by existing bank and specialty finance solutions.
The Solution: Funding Circle USA provides a marketplace for small business loans. We originate and evaluate small business borrowers to match them with accredited investors in a private marketplace.
vs.
Introduction to Funding Circle USA
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Founded by small business owners for small business owners… We know what it takes to fund and run a small business
Technology-enabled platform that provides a superior user experience for borrowers and lenders alike Web-based and intuitive for the modern small business owner
Proven business model that is very well capitalized We will continue to invest and innovate in our firm and products
Why Funding Circle USA?
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Funding Circle USA’s Loan Product
• 36-Month Term
• 10.99% Interest Rate, 14.99% Effective Rate
• Effective Rate includes a 2.99% Origination Fee & a 1.30% Servicing Fee
• Loan sizes ranging from from $25,000 to $500,000
• No prepayment penalty if principle amount is paid in full
• Simple, transparent, and with no hidden fees
• New products coming soon…
Single Product
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How FC USA stacks up against the competition
Funding Circle USA
Banks & SBA Loans
Alternative Finance
Specialty Lenders
Coupon Rate 10.99% 6%-8% >50% and opaque 30% to 60%
Fees1 2.99% origination1.30% servicing
2-5% (application fee, closing fee, packaging fee…)
Very high Very high
Effective Rate 14.99% 8%-13% 50% - 250% Over 30%
Process and Documentation
<14 business daysBanks: 60-90 daysSBA: 4-6 months
Varies Lengthy
Likelihood of Approval
>35% If eligible, <10% Varies Less than 25%
Loan Size $25K - $500KUninterested in loans
less than $1MLess than $50K Varies
1 Unlike FC USA, many lenders and banks include high hidden fees in the cost of their loans, increasing borrower payments..
Small Business Financing Landscape
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FC USA’s product is far more attractive to a borrower than other options
We have lost only one fully approved customer to another source!
Lower Rates
Longer Terms
Easy and
1-2 Weeks
Unlikely and
3-6 Months
Painful and
6-12 Weeks
Higher Rates
Shorter Terms
Specialty Finance
Banks
Competition: Small Business Lending
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We pay our Broker Affiliate Partners a 1.00% Referral Fee when a loan is funded Comes out of our Origination Fee Paid when the loan is funded
What is required to become a Broker Affiliate Partner? Complete, sign, and return our Broker Agreement & W-9
After the execution of those documents, FC USA will create you a customized Broker Portal Allows you to input and submit apps
What’s down the road? Broker Tiers – higher commissions to our most valued partners Broker Portal enhancements – intuitive technology features
Broker Affiliate Partners
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Loan Calculator
30 Seconds
Pre-Qualification
(Self Reported)
60 Seconds
Submitted Application
(Self Reported)
10 Minutes
Pre-Approval
48 Hours 2 – 3 Days2 Weeks
Credit Committee
1 Week
Automated eligibility screen + simple application Document collection + human element
Online Application Credit Review
• Loan amount• Monthly payment• Fees• Total cost
• Income• Net worth• Credit score• Guarantors• Use of funds• Franchise status• # of locations
• Personal assets• Personal debts• Business assets• Business debts• Cash balances• Real estate• Personal income• Business income• Education level• Legal actions
• Initial contact with pre-underwriter
• Personal background
• Use of funds confirmation
• Further clarifications, if needed
• Underwriter call• Business tax
returns• Personal tax
returns• Business bank
statements• Personal asset
verification
• Senior credit officer and advisor review
• Analysis of loan file and FC USA credit scorecard
• Final approval
Conditional Approval Verification
Funding Circle’s Broker Application
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Simple, Online Application
Support for Those Who Want It
Transparent Pricing & Fees
Quick Turnaround
Broker Portals for Specific Tracking
Borrower & Broker Experience
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Send an email to [email protected] or call 1-855-385-5356 to request more information
Complete and sign our Broker Agreement and W-9 Scan and return via attachment to [email protected]
Receive your Broker Portal login and password
Get an application started and submitted to FC USA!
We look forward to working with you as a partner now…and well into the future…
How to Get Started
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Funding Circle USA
1 UNION STREET, SUITE 210 • SAN FRANCISCO, CA 9411125 BROADWAY, FLOOR 12 • NEW YORK, NY 10004
www.fundingcircle.com/us
Brad HeritageDirector, Business Development
[email protected] (o)203.747.0934 (m)
Mike RabilDirector, Partnerships
[email protected] (o)301.502.2466 (m)
Contact Information
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Disclaimer and Confidentiality
This Overview provides general and preliminary information about Funding Circle USA’s (FC USA) planned commercial lending platform and is intended for initial reference purposes only. It is not a summary or a compilation of all applicable information and is not complete. This document does not constitute an offer to sell or the solicitation of an offer to buy securities by FC USA. There shall be no offer or sale of any securities by FC USA without the delivery of a private placement memorandum (“Memorandum”) and related documents. The information contained herein is qualified by and subject to more detailed information in the Memorandum, including the risk factors applicable to an investment in FC USA or the loan pools.
The materials and information contained and described herein are proprietary of FC USA and may not be reproduced or distributed in any fashion without FC USA’s written consent.