Funding Circle vs Assetz Capital Business Loans 2026

Funding Agent independently compares UK business finance providers, including online lenders such as Funding Circle and property focused funders like Assetz Capital, so owners can assess products on their own merits. Both brands provide finance to small and medium sized enterprises but they target different needs, with Funding Circle concentrating on unsecured term loans and Assetz Capital specialising in property secured lending for trading businesses and developers, based on Funding Circle's small business loans page and Assetz Capital's secured SME term loans page. This guide focuses on how each lender approaches loan sizes, security, eligibility and support, using only information that can be verified from official documents and credible third party coverage as of 2026. It is designed to help UK SMEs decide which lender is structurally closer to what they need before they apply.

1. Products and terms at a glance

Funding Circle

Funding Circle is a UK based small business lender that offers term loans to limited companies, LLPs and other trading businesses. Its core offering is a fixed term business loan where eligible UK based firms can apply to borrow within a stated range, with funds typically used for working capital, investment or refinancing, as described on the small business loans product page. The same page notes that businesses must have been trading for at least one year and be based in the UK to apply, and that the loans are structured with monthly repayments over a fixed term rather than a revolving overdraft style facility.

Funding Circle also provides other products, including FlexiPay and asset finance, but those sit on different parts of its business finance overview. For the purposes of this comparison the focus is on its standard small business loan because this is the product most directly comparable with Assetz Capital's SME term funding, even though the underlying security profile is different.

Most Funding Circle loans are unsecured in the sense that they do not require specific physical assets to be charged as collateral, although the legal documents often include personal guarantees and other forms of comfort, as suggested by the borrower agreement and third party commentary about guarantees. The detailed borrower terms also confirm that the relationship between the borrower and Funding Circle is governed by specific legal agreements and platform terms, set out in the UK borrower terms and conditions.

Assetz Capital Business Loans

Assetz Capital operates as a specialist SME property finance lender, offering facilities that are structurally different from a typical unsecured term loan. Its secured SME term loans are designed for trading businesses that can provide property as collateral, for instance an owner occupied commercial building, as detailed on the secured SME term loans page. The lender also provides development finance and commercial mortgages for property projects through separate product lines, as described on its development finance page and commercial mortgages page.

According to Assetz Capital's 2025 product guide, its loans are property secured, with maximum facility sizes that can extend into multi million pound territories for suitable proposals. The same guide and associated broker documents highlight that borrower eligibility is assessed against criteria such as property type, leverage levels and the borrower's ability to service the debt. Exact loan to value parameters and pricing bands vary by deal structure and may change over time, so businesses should treat any examples as indicative.

Although this article refers to Assetz Capital Business Loans as shorthand, the legal entity providing facilities is detailed in regulatory and legal disclosures such as the FCA register entry for Assetz Capital Lending Limited. Always check your own facility letter and terms for the precise contracting party.

Key structural differences

• Funding Circle focuses on unsecured or lightly secured term loans for general business purposes based on its product overview.
• Assetz Capital structures its SME lending predominantly as property secured facilities, including term loans, development funding and commercial mortgages according to its secured SME term loans page and development finance information.
• Funding Circle's target market is broad SME borrowers that meet trading and credit criteria, whereas Assetz Capital specifically targets property heavy businesses or projects, as implied in its description of SME term loans secured on property.
• Loan structures differ too, with Funding Circle emphasising straightforward instalment loans repaid monthly, and Assetz Capital often using interest only or staged drawdown structures in some products, as noted in its development finance guide.

2. Costs and repayments in practice

Transparency of pricing information

Funding Circle provides high level guidance on costs but not a full rate card. Its small business loans page states that interest rates start from a published headline rate and that there are no fees to settle early, but it does not disclose the full range of possible pricing, which will depend on credit assessment and other factors, as explained on the product page. It also references that businesses can check eligibility without impacting their credit score using an online eligibility checker, and that an indicative decision can be given relatively quickly, although exact turnaround times will vary.

Assetz Capital does not publish a full tariff of rates and fees for its SME term loans either. Instead, pricing is indicated as bespoke and linked to the characteristics of each proposal, which is consistent with the information in its secured SME term loans description and the 2025 product guide. That guide references ranges for key metrics such as maximum facility size and general loan types but does not give a fixed APR scale, which is typical for property backed lending where risk and structure can vary significantly.

Because neither lender publishes a full, up to date schedule of all pricing permutations, any numerical examples below are clearly illustrative and not a quotation. Actual costs will vary by applicant, credit profile, security, sector and market conditions at the time of application.

Repayment structures

Funding Circle's business loans are typically fully amortising instalment loans, meaning the borrower repays both capital and interest in fixed monthly payments over the term, as set out conceptually on its small business loans page. This structure can make budgeting more predictable because cash outflow is the same each month, subject to any early repayment if the borrower chooses to settle ahead of schedule.

Assetz Capital offers several repayment structures across its product set. For secured SME term loans and commercial mortgages the borrower may repay capital and interest on an amortising basis, while some development finance products use interest only during the build phase followed by repayment from sale or refinance, as described in its development finance explanation. The precise repayment schedule for any given facility is detailed in the individual offer letter, and can vary.

Illustrative comparison table

The following table uses high level, qualitative comparisons between the two lenders based on their published product information. Specific numbers for rates and fees are deliberately omitted or labelled as varies where not disclosed.

Worked Example 1: Cash flow loan for a trading business

This example is illustrative only and is not based on any published rate table. It is used purely to explain how amortising repayments differ from property backed, potentially interest only structures. Actual pricing and terms will vary.

Imagine a limited company retailer needing funds to refurbish a shop and invest in stock. The directors are not willing to secure the borrowing on property.

• With Funding Circle, the business might apply for an unsecured term loan over several years, with fixed monthly repayments of capital and interest, as outlined in the structure on its small business loans product information.
• Because repayments start immediately and include both principal and interest, the business's monthly cash flow must be strong enough to service the full instalment from month one.
• With Assetz Capital, to achieve a similar cash injection without property security would be more difficult, because its SME facilities are primarily property secured according to its product description. If the directors cannot or do not wish to offer property as security, Assetz Capital is less likely to be an appropriate match.

In this scenario, an unsecured instalment loan structure is often more aligned with Funding Circle's model than with Assetz Capital's, provided eligibility and credit checks are passed.

Worked Example 2: Property backed borrowing for expansion

This second example is again illustrative only and is intended to show how securing a loan on property can change the product choice and repayment shape. It does not reflect any specific rate or fee schedule.

Consider an engineering firm that owns its trading premises outright and wants to raise capital to purchase new machinery and expand floor space.

• With Assetz Capital, the firm could potentially use a secured SME term loan or a commercial mortgage, using the existing premises or expansion project as collateral, in line with the use cases described on the SME term loans page and commercial mortgages overview.
• Depending on the structure, the lender might offer an amortising repayment schedule or an initial interest only period, particularly if part of the loan relates to development style works, as noted on its development finance guidance.
• Funding Circle, by contrast, would assess the same firm mainly for an unsecured term loan, as described on its product page, and would not typically take a first legal charge over the premises in the way a property lender would.

For borrowers willing and able to offer property as security, a dedicated property lender like Assetz Capital may provide structures that align more closely with real estate backed business planning than an unsecured instalment loan can.

3. Speed and service

Funding Circle

Funding Circle positions itself as a fast, digital first business loan provider. Its UK site states that businesses can check if they qualify for a loan in a short time without impacting their credit score via an online checker, as described on the eligibility checker page and its step by step guide to getting a small business loan. While marketing materials reference rapid decisions, the exact approval and payout times can vary by applicant, and there is no binding guarantee of specific turnaround times in the legal documents.

For support, Funding Circle maintains a structured help section and customer service channels. Its business loans support page lists frequently asked questions about repayments, account management and documentation, and the general support hub provides contact information including phone, email and postal addresses. It also includes guidance on dealing with financial difficulty and vulnerable circumstances, via pages such as the business support team information.

Assetz Capital Business Loans

Assetz Capital is more relationship driven and less standardised than a pure online small business lender. New deals are often introduced via brokers or direct borrower enquiries, using contact routes such as the borrower enquiries page and general contact information. The site encourages potential borrowers and intermediaries to speak with regional relationship directors, which reflects the bespoke nature of property backed lending.

Because each facility is individually assessed, there is no uniform published timeframe for approvals or drawdowns. Some products, such as those marketed under fast track banners, may be streamlined for speed, but as of 2026 the key documents such as the 2025 product guide do not commit to specific timelines. Prospective borrowers should therefore assume that actual timing varies and depends on factors like valuation, legal due diligence and third party reports.

For ongoing service and broker support, Assetz Capital provides an intermediary portal and FAQ section, including an FAQ page for intermediaries. This covers topics such as documentation, indicative criteria and processes, although it is written primarily for brokers rather than end borrowers.

Complaints and regulatory context

Funding Circle publishes contact information and guidance for complaints and problem resolution via its support and legal pages. Customers who are dissatisfied can use the channels listed on the support page, and the firm is authorised and regulated by the Financial Conduct Authority according to statements on its business loans support section. Decisions by the Financial Ombudsman Service involving Funding Circle are publicly accessible, such as cases referenced in documents like ombudsman decision DRN 3373874, which illustrate how disputes can be escalated, although they relate to specific historic circumstances rather than general policy.

For Assetz Capital, complaints and regulatory disclosures are split across its website and external registers. Contact routes are shown on its contact page, and regulatory supervision is evidenced by entries such as the FCA record for Assetz Capital Lending Limited. Some Financial Ombudsman Service decisions also reference Assetz Capital entities, for example in decision DRN 5832615, highlighting that borrowers can escalate unresolved complaints to the ombudsman where eligibility criteria are met.

4. Who each lender suits

Funding Circle: best suited profiles

Based on Funding Circle's small business loans information and its wider resources, the lender is generally best aligned with:

• Trading businesses that have been operating for at least one year and are based in the UK, which matches the baseline eligibility set out on its product page.
• SMEs seeking relatively straightforward term finance for working capital, expansion, stock purchases or refinancing of existing borrowing.
• Borrowers that prefer fixed monthly repayments and a mostly online application process, with limited need for face to face interaction, as described in its guide to getting a small business loan.
• Directors who are comfortable with the likelihood of giving personal guarantees or other undertakings, in line with the obligations referenced in the borrower agreement.

Assetz Capital Business Loans: best suited profiles

Drawing on Assetz Capital's secured SME term loans product description and its development finance link, the platform is better suited to:

• Businesses or developers that can provide property as security, either through existing assets or new projects.
• SMEs requiring larger facilities than many unsecured lenders typically offer, particularly where projects involve construction or substantial capital expenditure, as illustrated in the 2025 product guide.
• Borrowers comfortable with more complex processes involving valuation, legal work and bespoke structuring.
• Intermediary introduced deals where brokers help package the application, which Assetz Capital actively supports through its intermediary FAQ and product guides.

Secondary perspectives

External reviews and analysis can provide additional context, although they should not replace official documentation. For Funding Circle, third party guides such as Upwise Capital's 2025 Funding Circle review summarise common eligibility patterns and typical borrower experiences, corroborating the emphasis on established SMEs and instalment loans. For Assetz Capital, articles like Rebuilding Society's comparison of Assetz Capital with other SME lenders discuss typical rate ranges and risk profiles for secured loans but again highlight that actual terms will vary by case.

5. How to apply

Applying to Funding Circle

The Funding Circle application journey is predominantly online.

• Prospective borrowers start by checking if they are likely to be eligible using the online eligibility checker, which requires basic details about the business, trading history and funding needs.
• If the business appears eligible, the next step is completing a full application through its small business loans portal, supplying financial accounts, bank statements and other documents, in line with the process outlined in the step by step guide.
• Funding Circle then carries out credit and affordability assessments. According to its guide, this may involve both automated checks and manual underwriting, and applicants may be asked for further information.
• If approved, the borrower receives an offer that sets out the loan amount, rate, term, repayment schedule and any conditions. The binding obligations are contained in documents such as the borrower terms and conditions and the specific facility agreement.

Funding Circle highlights on its guide pages that checking eligibility can be done without affecting the business's credit score, but a full application and acceptance of an offer will usually involve hard credit checks, as indicated in its small business loan guide.

Applying to Assetz Capital Business Loans

Assetz Capital's process reflects the bespoke nature of property secured lending.

• Borrowers or brokers typically begin by submitting details of the proposed deal through the borrower enquiries form or by contacting the lender via phone or email as listed on the contact page.
• High level criteria, including property type, location and requested loan amount, are checked against the parameters explained in the 2025 product guide and any relevant broker product guides on the broker product guides hub.
• If the case appears viable, Assetz Capital may issue an indicative heads of terms, subject to valuation, legal work and full underwriting. These steps are common for secured lending and are supported by documentation lists on the intermediary FAQ.
• A formal valuation of the property is usually required, along with legal due diligence and, in the case of development projects, build monitoring. Timelines and exact requirements vary and are not fully standardised in public documents as of 2026.

Because of these extra steps, applying to Assetz Capital is typically more document intensive and time consuming than submitting a straightforward online application to an unsecured lender, although the trade off is access to larger, property backed facilities.

6. Final verdict

When comparing Funding Circle with Assetz Capital Business Loans, the key distinction lies in security and structure. Funding Circle operates as a largely unsecured, online business lender that aims to provide relatively quick, fixed term funding to established UK SMEs, according to its product description. Assetz Capital, by contrast, behaves like a specialist property finance house that underwrites larger, property backed facilities across SME term loans, commercial mortgages and development finance, as described in its secured SME term loans page and development finance overview.

Costs, speed and eligibility all depend heavily on individual circumstances and are not fully transparent in public rate cards, so business owners should treat online examples as indicative only and obtain personalised quotes from each lender before deciding. It can also be helpful to consult professional advisers, particularly for complex property transactions where covenants and security documents can be detailed.

In summary, neither lender is universally better; the right choice is the one whose product design aligns most closely with your assets, timelines and risk appetite.

• Choose Funding Circle if:

• You are a UK based SME that has been trading for at least a year and want a term loan that is not secured on specific property, in line with the eligibility and product description on Funding Circle's small business loans page
• You prioritise an online led application journey with relatively quick indicative decisions, as outlined in its eligibility checker and small business loan guide
• You want predictable monthly repayments and flexibility to repay early without paying an early settlement fee, as stated in its small business loans features

• Choose Assetz Capital if:

• You can provide suitable property as security, for example owner occupied commercial premises or development sites, consistent with the criteria for its secured SME term loans and development finance products
• You need a larger or more bespoke facility that may involve staged drawdowns or interest only periods, as seen in its development and commercial mortgage offerings
• You are comfortable with a more involved process that includes valuations, legal work and interaction with relationship directors or brokers, as described in its product guide and intermediary FAQ

7. Sources

• Funding Circle small business loans product page
• Funding Circle eligibility checker
• Funding Circle guide to getting a small business loan
• Funding Circle borrower terms and conditions
• Funding Circle borrower agreement
• Funding Circle business loans support
• Funding Circle general support and contact
• Funding Circle business support team information
• Assetz Capital secured SME term loans product page
• Assetz Capital development finance page
• Assetz Capital commercial mortgages page
• Assetz Capital 2025 product guide
• Assetz Capital intermediary FAQ
• Assetz Capital broker product guides hub
• Assetz Capital contact page
• Assetz Capital borrower enquiries
• FCA register entry for Assetz Capital Lending Limited
• Financial Ombudsman Service decision involving Funding Circle
• Financial Ombudsman Service decision involving Assetz SME Capital trading as Assetz Capital
• Upwise Capital Funding Circle review 2025
• Rebuilding Society article comparing Assetz Capital with other SME lenders