Funding Circle the online small business lending platform has partnered with Pitney Bowes a global shipping and mailing service provider to offer small businesses more affordable loans. According to the partnership, Funding Circle’s machine learning and technology platform will combine with Pitney Bowes logistics and financial services.
Pitney Bowes and Funding Circle Small Business Loan Partnership
The partnership will be offering businesses a streamlined online application and loan origination process with market competitive rates allowing applicants access to funds in as little as 48 hours.
This pilot program aims to address the increasing needs of Pitney Bowes small business customers who are looking for growth capital. A 2021 Funding Circle’s 2021 Small Business Survey revealed that seven in ten business owners (72%) have said they feel they will need financing this year. The pilot offering is modeled with a borrower-first approach, which works to increase accessibility and convenience for small business owners looking for much-needed affordable capital to grow and scale their business in the post-pandemic environment.
“This lending as a service partnership showcases the strength of our machine learning and tech platform to help customers access funding simply and seamlessly. More than one-third of business owners see an opportunity to grow the size of their business this year; yet, many remain hindered 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 are the driving force behind our economy, but the number of small business loans approved by large banks has halved in just two years,” said Christopher Johnson, Senior Vice President and President, Pitney Bowes Financial Services. Since 2010 Funding circle had lent out some 15.2 billion in loans to over 100,000 small businesses across 700 industries.
When Is the Right Time to Expand Your Business?
As your business evolves and grows you will no doubt reach a stage where you will start to contemplate about expanding. Expansion can be a risky venture, as it requires a capital investment that can bring seismic changes to your organization.
Key indicators for considering expanding include seeing potential benefits from economies of scale and your competitors expanding. When it comes to economies of scale it is all about reducing production or service costs thereby helping you lower your rates and increasing your overall profit. Expansion can also boost your competitive edge by allowing you to protect yourself against your competitors’ offerings and take advantage of marketing tactics, more efficient facilities, and additional product or service features.
In some cases, financing your expansion will require taking out loans. Those finances will help you to acquire additional facilities, equipment, inventory, and or manpower. You must know exactly what the terms of the loans are before signing on the dotted line.
Make sure that you know about the interest rate being charged, the repayment tenure of the loan, processing and other charges you will have to pay, options to get tax benefits, and other particulars of the loan.
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Image: pitneybowes, fundingcircle