- Founded: 2012
- Ceased Operations: 2016
What did CircleBack Lending do?
CircleBack Lending was a financial technology company focused on providing affordable credit to prime U.S. consumers. CircleBack Lending used a marketplace model to connect borrowers with lenders. Borrowers could apply for a loan online and receive an approval decision within minutes. Once approved, the funds were deposited directly into the borrower’s bank account.
CircleBack Lending has raised a total of $22.2 million in funding from a single investor, Pine River Capital Management.
Who started CircleBack Lending ?
Founders Manoj Ramnani and Patrick Questembert
Why did CircleBack Lending go out of business?
The overall market for small business loans was shrinking due to the COVID-19 pandemic. This made it difficult for CircleBack Lending to find enough borrowers to generate enough revenue. CircleBack Lending faced increasing competition from other fintech companies that were also offering loans to small businesses.
The Federal Reserve has raised interest rates several times in recent months, which has made it more expensive for borrowers to get loans. This has hurt CircleBack Lending’s business, as it relies on interest income to generate revenue.