Funding Tree Limited is a peer-to-peer crowdfunding platform established in 2014. It connects UK small and medium-sized enterprises with individual investors for both debt and equity finance. The company operates via an entirely digital platform, offering marketplace-based funding options. Funding Tree is authorised and regulated by the Financial Conduct Authority (FRN 720331). This lender may suit established businesses seeking flexible funding without traditional bank loans. To learn more about different lender types and alternative finance options, visit Lenders and Alternative Finance Loans.
Key Features of Funding Tree
Funding Tree provides a digital platform combining loan and equity crowdfunding, featuring competitive rates and FCA regulation. It offers transparency and access to a wide investor pool.
- Fully online application and investor bidding with real-time dashboards – see Request Funding.
- Credit assessment includes automated Companies House and credit bureau checks – refer to How To Qualify For A Business Loan In The UK.
- No early repayment or exit fees on loans for flexible repayment – see details on Early Repayment Fees.
Funding Eligibility Requirements
You may qualify for Funding Tree's business loans if your company has been trading for at least two years with a minimum annual turnover of £100,000. Additionally, personal or director guarantees are typically required. Eligibility also excludes certain sectors such as property development and gambling. For detailed eligibility guidance and credit score considerations, visit How To Qualify For A Business Loan In The UK, Credit Score, and Guarantor.
Loan Options Available
Funding Tree offers two main funding types: Peer-to-Peer Business Term Loans and Equity Crowdfunding. These options cater to different business stages and funding needs.
- Peer-to-Peer Business Term Loan: Borrow between £5,000 and £1,000,000 over 6 months to 5 years. Interest rates range from 6.0% to 18.0% APR, set by investor reverse-auction bidding. Fees include an arrangement fee of 3%–7% and a 1% annual platform servicing fee. See Term Loans, Business Loans, and Annual Percentage Rate.
- Equity Crowdfunding Raise: Target raise range of £20,000 to £2,000,000 with no repayment schedule. Investors receive equity shares rather than interest. Fees include a 6% success fee and other minor fees. This is suitable for various business stages with a clear growth plan. More information at Equity Finance and What Is Equity Finance.
How to Apply
Applications to Funding Tree are processed online with a quick indicative decision. Required documents and a dedicated campaign manager support borrowers through the process.
- Submit an online application form via their portal – see Request Funding.
- Provide required documents such as latest accounts, bank statements, director ID, and a business plan for equity raises.
- Expect an indicative decision within 24–48 hours and full credit approval within 3–5 days.
Funding Agent’s View on Funding Tree Limited
Funding Tree operates as a hybrid marketplace suitable for established UK SMEs ready for digital crowdfunding. The platform's auction-based pricing and marketing benefits appeal to creditworthy, growth-focused businesses. However, reliance on investor interest and the requirement for personal guarantees means it is less suited for early-stage startups or companies seeking guaranteed funding. For further exploration of business loan eligibility, use the Business Loan Calculator, check loan eligibility requirements, or compare lenders at Lenders.
