Lendus.

Funding Circle Review

Funding Circle is one of the UK's largest and most established small business lenders, founded in 2010 as a peer-to-peer lending platform before transitioning to a direct lending model. It offers term loans from £10,000 to £500,000 to established UK SMEs, and has facilitated over £15 billion in lending globally. Funding Circle floated on the London Stock Exchange in 2018 and is known for competitive rates, transparent pricing, and a streamlined digital application process.

Written by the Lendus editorial team. Last updated: April 2026.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Amount

£10k – £500k

Rates

6.9% – 36%

per annum; fixed rate for the loan term

Speed

Decision within 24 hours; funds typically within 3 business days

Trustpilot

4.6/5

15,200 reviews

What is Funding Circle?

Funding Circle (Funding Circle Ltd) is a UK-based business finance provider founded in 2010 and headquartered in London. Funding Circle is one of the UK's largest and most established small business lenders, founded in 2010 as a peer-to-peer lending platform before transitioning to a direct lending model. It offers term loans from £10,000 to £500,000 to established UK SMEs, and has facilitated over £15 billion in lending globally. Funding Circle floated on the London Stock Exchange in 2018 and is known for competitive rates, transparent pricing, and a streamlined digital application process. They have lent £15 billion+ to date, helping 130,000+ UK businesses.

Founded 2010 London Authorised and regulated by the Financial Conduct Authority (FRN: 597391)

Compare Funding Circle with 200+ other lenders

Check Eligibility

Products offered

Business Loans

Rates and costs

Rate range
6.9% – 36% (per annum; fixed rate for the loan term)
Representative APR
13.9% APR representative
Amount range
£10,000 – £500,000
Approval speed
Decision within 24 hours; funds typically within 3 business days

Representative example

Borrow £50,000 over 36 months. Total repayable: £58,750. Cost of credit: £8,750. Your rate depends on your circumstances.

Eligibility requirements

Minimum trading history
2+ years
Minimum turnover
£50,000
Credit requirements
Funding Circle requires at least 2 years of trading history and checks both the business credit file and a personal credit check on directors. Businesses with CCJs, significant defaults, or recent insolvency events are unlikely to be approved. The lender uses automated credit scoring alongside manual underwriting for larger loan amounts. A reasonable credit score and up-to-date filed accounts are expected.

How to apply

1

Check eligibility through Lendus — answer a few questions about your business and funding needs (2 minutes)

2

We compare Funding Circle against 200+ other lenders to find the best match for your situation

3

Review your matched options — see rates, terms, and eligibility from multiple providers including Funding Circle

4

Choose the best offer and complete the application with your matched lender directly

Or compare Funding Circle against 200+ lenders through Lendus

Check Eligibility

Pros and cons

Pros

  • Competitive fixed interest rates starting from 6.9% p.a. — among the lowest in the alternative lending market
  • Loan terms from 6 months to 6 years, allowing repayments to be spread to match cash flow
  • Fully regulated, publicly listed lender with a long track record since 2010 — high trust and transparency
  • No hidden fees — a single completion fee of 0.5%–5% of the loan amount is charged upfront
  • Dedicated account manager for larger loans and strong customer support

Cons

  • Requires a minimum of 2 years trading history, making it inaccessible to start-ups and newer businesses
  • Minimum loan of £10,000 — not suitable for businesses needing smaller amounts of working capital
  • Completion fee (up to 5%) is charged upfront and deducted from the loan — this adds to the overall cost
  • Application can take 1–3 days, which is slower than instant-decision lenders like Capital on Tap or iwoca
  • Personal guarantee required from directors — your personal assets may be at risk if the business defaults

Is Funding Circle right for you?

Best for

Established UK SMEs with at least 2 years of trading history seeking a fixed-rate term loan for growth, equipment purchase, or working capital. Particularly well suited to businesses that prioritise competitive rates and transparent, predictable repayments over speed, and that can afford to wait 2–3 days for funds.

Not ideal for

Start-ups, businesses under 2 years old, or those needing very fast access to cash. Funding Circle is also not ideal for businesses needing amounts under £10,000, or those with significant adverse credit history or recent CCJs.

Funding Circle alternatives

If Funding Circle isn't the right fit, consider these alternatives:

iwoca Capital on Tap YouLend

Compare all 200+ lenders in 2 minutes — no credit check

Check Eligibility

Frequently asked questions about Funding Circle

Is Funding Circle legit?
Yes, Funding Circle is a fully legitimate and well-established UK lender. It is authorised and regulated by the Financial Conduct Authority (FRN: 597391) and has been listed on the London Stock Exchange since 2018. Founded in 2010, it has lent over £15 billion to more than 130,000 businesses globally and holds a Trustpilot score of 4.6 from over 15,000 reviews — one of the highest review counts of any alternative lender.
What are Funding Circle interest rates?
Funding Circle offers fixed annual interest rates starting from 6.9% p.a. for the most creditworthy borrowers, up to approximately 36% p.a. for higher-risk applicants. The representative APR is 13.9%. All rates are fixed for the life of the loan, so your monthly repayments never change. A one-off completion fee of 0.5%–5% of the loan amount is also charged at drawdown.
Can I get Funding Circle with bad credit?
Funding Circle checks both your business credit history and performs a personal credit check on directors. Applicants with recent CCJs, significant defaults, or recent insolvency are unlikely to be approved. If your credit history is imperfect but you have a strong trading record and healthy revenue, it may be worth applying, as the underwriting process is not purely automated. For businesses with known credit issues, lenders like YouLend or Liberis (which base decisions on revenue rather than credit score) may be more accessible.
How much can I borrow from Funding Circle?
Funding Circle offers business loans from £10,000 to £500,000. The amount you can borrow depends on your business revenue, trading history, and creditworthiness. Most businesses borrow between £25,000 and £150,000. Loan terms run from 6 months to 6 years, allowing you to choose a repayment schedule that suits your business cash flow.
Is Funding Circle FCA regulated?
Yes. Funding Circle Ltd is fully authorised and regulated by the Financial Conduct Authority under FRN 597391. As a publicly listed company (LSE: FCH), it is also subject to ongoing scrutiny from the Financial Conduct Authority, the Prudential Regulation Authority, and stock market regulators. This makes it one of the most heavily regulated and transparent alternative lenders in the UK.
How long does Funding Circle take to approve?
Funding Circle typically provides a credit decision within 24 hours of a complete application being submitted. Once approved, the loan agreement can be signed digitally and funds are usually transferred within 3 business days. This is slower than instant-decision lenders like Capital on Tap or iwoca, but is standard for the loan sizes Funding Circle offers (£10,000–£500,000).
Can I repay Funding Circle early?
Yes, Funding Circle allows early repayment of your loan. There are no early repayment penalties — you can repay the outstanding balance in full at any time without additional charges. If you repay early, you only pay interest for the period the loan was outstanding, which can significantly reduce the total cost of credit compared to running to the full term.
Funding Circle vs iwoca — which is better?
Funding Circle is generally better for larger, established businesses seeking competitive fixed rates on term loans of £10,000–£500,000 over 6 months to 6 years. iwoca is better for businesses wanting faster access to smaller amounts (from £1,000), more flexible repayments, and an Open Banking-driven process with a quick decision. Funding Circle typically offers lower rates for well-qualified borrowers, while iwoca's Flexi-Loan allows you to draw down and repay repeatedly without reapplying. If speed and flexibility matter most, choose iwoca; if rate and loan size are priorities, Funding Circle often wins.

Compare Funding Circle with 200+ other lenders

Check eligibility in 2 minutes. No credit check. See if there's a better deal.

Check Eligibility
Check Eligibility — 2 min, no credit check