Read what leading personal finance experts have to say about Virgin Money, and our work as CircleLending.
Banking analyst Jim Bruene of Online Financial Innovations
"One if the most interesting stories in retail financial services was the entry of Virgin Money into the U.S. market…but regardless of what strategies Virgin Money chooses to pursue, it is likely to put pressure on mainstream banks. They wouldn't be part of the family if they didn't challenge the status quo."
Copyright © 2007
Analyst Jean M. Garascia of Javelin Strategy & Research
"A longer term challenge to existing financial services providers is in the area of small business loans, which appear frequently as listings on Prosper Marketplace and also feature prominently on Virgin Money USA's front page as seen in Figure 3… If capital is available to small business owners at better rates than they would receive from a traditional FI loan or credit card, this could make it even more difficult for banks to service this elusive segment."
Copyright © 2007
Personal finance journalist Sharon Epperson on MSNBC
"In an environment of falling home prices and tighter credit standards, some borrowers will have a tougher time borrowing money through a home equity loan or line of credit. Some people will no longer even qualify for those loans, or have enough equity to tap into. So where's the next best place to borrow money?... First choice: Borrow money from a family member or friend. You can customize terms and come up with a repayment plan on your own. Or, get help from a company like VirginMoney (www.virginmoneyus.com, formerly CircleLending) that specializes in setting up family loans. For $100 they'll help you set up the terms of the loan, put it in writing, and take some the emotion out of it."
Copyright © 2007
Financial expert Jean Chatzky (interview with Marci Alboher)
"Unfortunately, we're in a time when credit is harder to establish and harder to get when you don't have a decent credit score. A lot of entrepreneurs get financing from friends and family, but it can leave them wondering if they will ever get paid back. There are also some new options, like a company called CircleLending (now Virgin Money), which provides a structure you can use if friends and family want to lend you money."
Copyright © 2007
Personal finance columnist Kathy Kristof of the LA Times
"Why pay a go-between to get a loan from Mom? Jay Jilot of Reno did it because he wanted to document for the Internal Revenue Service that the $475,000 from his parents was really a mortgage loan -- not a gift -- and that therefore the interest was tax deductible."
See article
Copyright © 2007, Los Angeles Times
"In the right circumstances, this can be a win for both the borrower and the lender, because, essentially, you can give the borrower a better rate of interest than they could get someplace else and as the lender, you could be getting a better return than somewhere else as well. But, you know, it's like anything else. Be thoughtful about who you're handling these transactions with because otherwise you lose the money and the friend."
[from a transcript of a Marketplace interview with Tess Vigeland]
Copyright © 2007, National Public Radio
E-commerce and technology journalist Bob Tedeschi of the New York Times
"Sellers who offer 100 percent of the financing can spare themselves the trouble of servicing the loan by contracting with an outside company to help. For example, CircleLending, based in Boston, services loans for $9 a month, which includes levying late-payment penalties and arranging for loan restructuring for delinquent borrowers."
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Copyright © 2006, The New York Times
Registered investment advisor Terry Savage
"Fortunately, there's now an easy way to get help in structuring and managing a private, personal loan… It's worth paying these fees. CircleLending will create the appropriate documents to be signed in order to keep this transaction at arm's length for both parties. … But CircleLending will take the process a step further. For a fee of $9 per payment, it will actually collect and process the payments if they're made through an automatic deduction from the borrower's checking account. The borrower receives an e-mail reminder a few days before the debit is made. Then the money is electronically deposited in the lender's account. (CircleLending doesn't earn money on the funds during the transaction.)
Don't underestimate the value of this assistance. If the borrower wants to prepay a portion of the loan, CircleLending will do the calculation to reduce the balance. And it will help with documentation if you decide to turn a portion of your loan into a "gift" at year-end. … But if you are going to make a family loan, doing it correctly will save a lot of financial and emotional heartache. And that's The Savage Truth."
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Copyright © 2006, Terry Savage Productions
Sheryl Garrett, founder of the Garrett Planning Network, a group of financial advisers
"...company such as CircleLending.com to formalize the paperwork.”It's just a really smart way to handle a intrafamily loan," Garrett said. "It treats it as business relationship, not a handout."
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Copyright © 2006, The Morning Call
Andrew Tobias, personal finance columnist for Parade Magazine
"Note, also, that for loans of any size, you may want to use CircleLending.com, as described here a couple of years ago. Had I done so over the years, my guess is that I would be at least several thousand dollars ahead."
Copyright © 2004, Andrew Tobias
"Have you ever borrowed money from, or loaned money to, a friend or relative? I don’t mean $50 – maybe $2,500 or $10,000? It’s a great way to lose both friends and money… Now comes a new service, CircleLending.com that could conceivably cut down on the damage. Basically, CircleLending makes it easy to be more businesslike, but without offending the borrower."
Copyright © 1998, 1999, 2000, 2001, 2002 Andrew Tobias
CNN/Money Staff Writer By Annelena Lobb
"The best way to ensure you get repaid is to set terms and conditions on the loan from the get-go…Or, you can take the process a step further and formalize the loan legally through CircleLending."
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Copyright © 2002, CNN America
Victor Godinez, Business Columnist at Dallas Morning News
"Getting by with a little help from your friends – and family – can be a good alternative, as long as you take some precautions… Mr. Advani is the chief executive of CircleLending, which helps small business owners document loan agreements with family and friends and set up payment plans."
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Copyright © 2006, The Dallas Morning News Co.
Erin Burt, “Starting Out” columnist at Kiplinger’s
"A smart way to manage a loan between friends is with a professionally administered loan from CircleLending. The company will send statements and track payments -- and provide healthy distance."
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Copyright © 2006, The Kiplinger Washington Editors
Suze Orman, personal finance guru
"Handshakes, hugs, and kisses are not good enough for sealing a loan agreement. Put everything in writing. In fact, that's another good way to size up the credibility of the person who needs your money: They should tell you right off the bat that they want to sign a formal loan document that spells out all the terms of the deal."
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