Broker Introduction
December 2013
Introduction to Funding Circle USA
The Problem: Small businesses
struggle to get the loans they
need to expand; they are poorly
served by existing bank and
specialty finance solutions.
vs.
www.fundingcircle.com/us
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.
2
Why Funding Circle USA?
 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
www.fundingcircle.com/us
3
Funding Circle USA’s Loan Product
•
36-Month Term
•
10.99% Interest Rate, 14.99% Effective Rate
•
Single Product
www.fundingcircle.com/us
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…
4
Small Business Financing Landscape
How FC USA stacks up against the competition
Funding Circle
USA
Banks & SBA
Loans
Alternative
Finance
Specialty
Lenders
10.99%
6%-8%
>50% and opaque
30% to 60%
2.99% origination
1.30% servicing
2-5% (application
fee, closing fee,
packaging fee…)
Very high
Very high
14.99%
8%-13%
50% - 250%
Over 30%
<14 business days
Banks: 60-90 days
SBA: 4-6 months
Varies
Lengthy
>35%
If eligible, <10%
Varies
Less than 25%
$25K - $500K
Uninterested in loans
less than $1M
Less than $50K
Varies
Coupon Rate
Fees
1
Effective Rate
Process and
Documentation
Likelihood of
Approval
Loan Size
1 Unlike
FC USA, many lenders and banks include high hidden fees in the cost of their loans, increasing borrower payments..
www.fundingcircle.com/us
5
Competition: Small Business Lending
FC USA’s product is far more attractive to a borrower than other options
Easy and
1-2 Weeks
Painful and
6-12 Weeks
Specialty
Finance
Unlikely and
Banks
3-6 Months
Higher Rates
Lower Rates
Shorter Terms
Longer Terms
We have lost only one fully approved customer to another source!
www.fundingcircle.com/us
6
Broker Affiliate Partners
 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
www.fundingcircle.com/us
7
Funding Circle’s Broker Application
Online Application
30 Seconds
Loan Calculator
• Loan amount
• Monthly payment
• Fees
• Total cost
Credit Review
60 Seconds
10 Minutes
PreQualification
(Self Reported)
Submitted
Application
(Self Reported)
• 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
Automated eligibility screen + simple application
www.fundingcircle.com/us
48 Hours
Pre-Approval
• Initial contact
with preunderwriter
• Personal
background
• Use of funds
confirmation
• Further
clarifications, if
needed
2 – 3 Days
Conditional
Approval
Verification
• Underwriter call
• Business tax
returns
• Personal tax
returns
• Business bank
statements
• Personal asset
verification
1 Week
2 Weeks
Credit
Committee
• Senior credit
officer and
advisor review
• Analysis of loan
file and FC USA
credit scorecard
• Final approval
Document collection + human element
8
www.fundingcircle.com/us
9
www.fundingcircle.com/us
10
Borrower & Broker Experience
Simple, Online
Application
Support for Those
Who Want It
Transparent
Pricing & Fees
Quick Turnaround
Broker Portals for
Specific Tracking
www.fundingcircle.com/us
11
Broker Portal
www.fundingcircle.com/us
12
Starting a Broker Application
www.fundingcircle.com/us
13
How to Get Started
 Send an email to usbroker@fundingcircle.com or call 1-855385-5356 to request more information
 Complete and sign our Broker Agreement and W-9
 Scan and return via attachment to usbroker@fundingcircle.com
 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…
www.fundingcircle.com/us
14
Contact Information
Funding Circle USA
1 UNION STREET, SUITE 210 • SAN FRANCISCO, CA 94111
25 BROADWAY, FLOOR 12 • NEW YORK, NY 10004
www.fundingcircle.com/us
Brad Heritage
Mike Rabil
Director, Business Development
Director, Partnerships
brad@fundingcircle.com
855.385.5356 (o)
203.747.0934 (m)
mike@fundingcircle.com
855.385.5356 (o)
301.502.2466 (m)
www.fundingcircle.com/us
15
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.
www.fundingcircle.com/us
16