Funding Circle, the online small business lending platform, has partnered with Pitney Bowes, a global shipping and courier services provider, to provide more affordable small business loans. Under the partnership, Funding Circle’s technology and machine learning platform will combine with Pitney Bowes’ logistics and financial services.
Pitney Bowes and Funding Circle Small Business Loan Partnership
The partnership will offer businesses a streamlined online application and loan origination process with market-competitive rates allowing applicants to access funds in as little as 48 hours.
This pilot program is designed to meet the growing needs of Pitney Bowes small business clients seeking growth capital. The 2021 Small Business Survey from a 2021 Funding Circle found that seven in ten (72%) business owners said they thought they needed funding this year. The pilot offering is modeled with a borrower-centric approach, which aims to increase accessibility and convenience for small business owners seeking much-needed affordable capital to grow and scale their business in the post -pandemic.
“This loan-as-a-service partnership showcases the strength of our machine learning and technology platform to help customers access finance in a simple and transparent way. More than a third of business owners see an opportunity to increase the size of their business this year; yet many remain hampered by a lack of access to capital to do so,” said Vipul Chhabra, managing director of Funding Circle US.
“America’s 32.5 million small businesses drive our economy, but the number of small business loans approved by big banks has halved in just two years,” said Christopher Johnson, senior vice president and President of Pitney Bowes Financial Services. Since 2010, the Funding Circle has lent some $15.2 billion in loans to more than 100,000 small businesses in 700 industries.
When is the right time to expand your business?
As your business evolves and grows, you will undoubtedly reach a stage where you start thinking about expanding. Expanding can be a risky business as it requires a capital investment that can bring seismic changes to your organization.
Key indicators for considering expansion include the potential benefits of economies of scale and the expansion of your competitors. When it comes to economies of scale, it’s all about lowering production or service costs, which helps you lower your prices and increase your overall profit. Expansion can also enhance your competitive advantage by allowing you to protect yourself against competitors’ offers and take advantage of marketing tactics, more efficient facilities, and additional product or service functionality.
In some cases, financing your expansion will require taking out loans. These finances will help you acquire additional facilities, equipment, inventory and/or labor. You must know exactly what the terms of the loans are before signing on the dotted line.
Make sure you know the interest rate charged, loan repayment term, processing and other fees you’ll have to pay, options for obtaining tax benefits, and other loan details.
Image: pitneybowes, fundraising circle