Funding Circle Ltd is a UK peer-to-peer marketplace lender authorised by the FCA. Established in 2010, it offers unsecured business loans up to £500,000, primarily serving small and medium enterprises with at least two years of trading. Its technology-driven platform aims to speed up lending decisions and funding availability. This lender suits established businesses looking for quick unsecured finance, but start-ups and those needing longer terms might find limited options here. More about business loans is available here.
Key Features of Funding Circle Ltd
Funding Circle's platform includes several practical features to help businesses access finance quickly and transparently.
- Fast, fully online application with decisions often in minutes, described under instant decision loans.
- Unsecured lending up to £500,000 without requiring collateral, detailed in unsecured business loans.
- No early repayment fees for core products, explained on early repayment fees.
- Transparent fixed interest rates and one-off completion fees, with more on annual percentage rate.
- Dedicated UK-based support including account managers, supporting smooth customer experience.
Funding Eligibility
Eligibility requirements focus on business trading history and financial stability. You may qualify if your business has been trading for at least two years and typically has an annual turnover exceeding £100,000. Personal guarantees from directors or shareholders owning 20% or more are mandatory for unsecured loans. Further eligibility details and guides can be found on how to qualify for a business loan and guarantor requirements. Understanding personal guarantees is also helpful, explained here.
Loan Options
Funding Circle offers multiple loan types tailored for various business needs. Below are key loan options:
- FlexiPay – Revolving Line of Credit: Credit limit from £2,000 to £250,000; repayment over 3 months with 0% interest and flat fees of 3% to 5%; suitable for short-term cash flow needs. Details at revolving credit loans.
- Recovery Loan Scheme Business Loan: Between £25,001 and £350,000 with terms up to 6 years; fixed interest rates of 7.9% to 14.9% per annum, unsecured up to £350,000; personal guarantees apply. See business loans for more information.
- Unsecured Business Term Loan: Loans from £10,000 to £500,000 with 6 months to 6 years terms; representative fixed rates 7.9% to 14.9% per annum; secured by personal guarantees, no collateral required. Further details at unsecured business loans.
How to Apply
The application process is fully online, designed for speed and convenience. You can expect decisions in minutes for loans under £50,000, typically within one business day for larger amounts. Funding usually occurs within 24 hours of agreement signing.
- Submit an online application form accessed via Funding Agent's application form.
- Provide required documents such as recent business bank statements, filed accounts, and director identification, per guidance on loan application process.
- Undergo credit and fraud checks; decisions can be quick due to open banking and software integrations.
- Sign the loan agreement electronically; funds usually transfer within 24 hours afterward.
Funding Agent's View on Funding Circle Ltd
Funding Circle provides a straightforward, technology-led solution for established UK SMEs needing unsecured loans or short-term credit. Its emphasis on two years' trading, personal guarantees, and no collateral may restrict access for start-ups or those preferring longer terms. Users should assess eligibility carefully and consider alternative lenders if required. Use the tools and eligibility guides on Funding Agent to evaluate your suitability and compare offers.
