Funding Circle Ltd is a UK-based online marketplace lender founded in 2010, specialising in unsecured small-business finance through a fully digital platform. It is authorised by the Financial Conduct Authority (FRN 722513) and connects institutional and retail capital with UK SMEs via term loans and revolving credit solutions. This lender may suit established limited companies seeking quick, unsecured funding with fixed interest rates but is less suitable for start-ups or businesses needing asset-backed loans. For more information, see our Funding Circle reviews and business loan overview.
Key Features of Funding Circle Ltd
Funding Circle offers a streamlined digital experience with features aimed at speed and ease of management for borrowers.
- Fully digital application completed in under 10 minutes with Open Banking integration to reduce paperwork.
- Fast credit decisions, often within 1 hour during business hours, supporting quick access to funds (quick business finance).
- No early repayment fees on standard business loans, allowing flexible loan refinancing.
- Fixed interest rates on loans provide payment certainty and facilitate cash flow planning.
- Dedicated UK account managers and customer support for personalised service management (contact options).
Eligibility for Funding Circle Loans
You may qualify for Funding Circle’s products if your business meets certain requirements. The most common barriers include a minimum trading history and turnover.
- Minimum 24 months trading history with filed accounts is typically required (eligibility guide).
- Minimum annual turnover generally starts at £50,000, though higher turnover can improve acceptance chances.
- Your business must operate as a UK-registered limited company or LLP, excluding sole traders (unsecured business loans eligibility).
- Sector exclusions apply, including gambling, weapons, payday lending, pornography, and speculative property investments.
- No recent County Court Judgments (CCJs) over £250 in the past 12 months is generally required for standard loans.
Loan Options Offered by Funding Circle
Funding Circle provides several loan types designed for different business needs, from mid-sized term loans to short-term revolving credit.
- Unsecured Business Term Loan: Loans from £10,000 to £500,000 with terms ranging 6 months to 6 years. Interest rates are fixed between 7.9% and 23.9% per annum (representative APR 8.9%). The loan requires a personal guarantee and has origination fees from 3.49% to 7.99%.
- Recovery Loan Scheme (RLS) Business Loan: Unsecured loans from £25,001 up to £350,000 (secured options up to £2,000,000 not currently offered). Terms between 6 months and 6 years, fixed rates 7.0% to 14.5% p.a. Government-backed scheme with no personal guarantee required for some loans under £250,000.
- FlexiPay Business Line of Credit: Credit limits from £2,000 to £250,000 with repayment via three equal monthly instalments. 0% interest for 30 days with a flat fee of around 3% per transaction. Personal guarantee needed for amounts over £30,000.
How to Apply for Funding Circle Loans
Applications are online only, designed for speed and minimal paperwork, with eligibility checks that do not impact your credit score.
- Submit your application through a digital form with real-time eligibility checks available (application form).
- Provide recent filed accounts, business bank statements (via Open Banking or uploads), director ID, and VAT returns if applicable (document checklist).
- Await quick underwriting decisions, often within one hour during business hours, enabling funding within 24 hours post-approval (funding speed).
- Review and sign your loan agreement electronically for immediate release of funds.
Funding Agent’s View on Funding Circle Ltd
Funding Circle is a significant player in UK SME marketplace lending, offering easy access to unsecured finance with flexible repayment options. Its digital process and fixed rates benefit established businesses needing quick working capital. However, requirements like personal guarantees, exclusion of start-ups, and capped loan sizes limit suitability for some. For next steps, use our business finance tools and eligibility checker to assess if Funding Circle meets your business needs.
