Kriya vs Funding Circle: Which Lender Is Better for UK Business Finance?
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Choosing between Kriya and Funding Circle is mostly about matching the product type to the problem you are solving, short-term cash flow versus longer-term funding for growth. Both brands are well known in UK business finance, but they are built differently, and that affects how you apply, how you repay, and what you can realistically use them for. This comparison is aimed at UK limited companies, LLPs and sole traders weighing up speed, total cost, and the type of security or guarantees a lender may ask for. Where lenders use risk based pricing, this guide focuses on verifiable ranges and structures, not made up numbers.
- Kriya is best known in the UK for invoice finance and short-term working capital products, where repayment is typically linked to invoices or near-term cash flow.
- Funding Circle is best known for term loans with fixed monthly repayments, aimed at established SMEs that want predictable budgeting.
- Both lenders price on a case by case basis, published examples and ranges can help you benchmark, but the final offer can differ materially by credit profile and affordability.
- Speed can be fast with both, but timelines depend on documentation, underwriting checks, and whether security, guarantees, or debentures are required.
- If you are unsure which structure fits, comparing like for like, total repayable, fees, and repayment cadence is usually more informative than focusing on a headline rate.
Products and terms at a glance
Before comparing costs, it is worth confirming what each lender is in the UK market today. Kriya and Funding Circle do not offer the same flagship products, so a fair comparison starts by identifying what you can actually apply for.
Kriya, overview
Kriya is a UK business finance brand that markets invoice finance and cash flow funding solutions for SMEs, including products described on its site under invoice finance and business loans. Kriya’s UK offering is commonly positioned around releasing cash from invoices and short-term funding, rather than multi year amortising loans.
Because invoice finance is central to the product set, it is helpful to understand how invoice financing typically works before comparing lenders, particularly around what happens if an invoice is disputed or paid late.
Kriya, pros (based on published features)
- Clear focus on invoice finance as a core product line, as described on Kriya’s invoice finance page.
- Online led application and account management messaging, as shown across Kriya’s product pages such as business loans and invoice finance.
- Often relevant for businesses with B2B invoicing and longer payment terms, which is the use case described in Kriya’s invoice finance materials like this overview.
Kriya, cons (constraints to check)
- Suitability depends on having qualifying invoices or trading patterns, eligibility can vary by product and is not always reducible to a single rule, so you may need to confirm specifics via Kriya’s contact options.
- Invoice finance can involve operational steps such as invoice verification or debtor related processes, which can be a mismatch if you want a simple fixed repayment loan, Kriya highlights invoice finance mechanics on its invoice finance page.
- Pricing may include multiple components, for example discount rate and service fees, and can be quote led, Kriya indicates pricing is tailored in its product descriptions, see invoice finance information.
Funding Circle, overview
Funding Circle markets UK business loans aimed at SMEs, with products described on its official site under business loans. The UK facing Funding Circle brand is operated by its UK group, which is publicly listed, and it provides information for borrowers on lending, fees, and complaints through its main domain, for example the business loans page and its Help Centre.
If you are comparing this with other borrowing options, it can help to benchmark Funding Circle’s style of product against a standard term loan, which typically has a fixed term and scheduled repayments.
Funding Circle, pros (based on published features)
- Term loan structure with fixed monthly repayments is central to the offer described on Funding Circle business loans.
- Eligibility and application steps are explained through official borrower resources, including the Help Centre.
- Funding Circle publishes borrower information on fees and representative examples on its site, see business loans and related help pages.
Funding Circle, cons (constraints to check)
- Risk based pricing means the headline rate you see advertised is not guaranteed, Funding Circle notes that rates depend on business circumstances on its business loans page.
- Some applicants may be asked for security, guarantees, or a debenture depending on the facility, Funding Circle explains security and guarantees in borrower help content, see the Help Centre.
- Not all business types will be eligible, and acceptance criteria can change, Funding Circle points borrowers to eligibility guidance and checks via its product pages and support content.
Costs and repayments in practice
Pricing is where these two options can feel most different. With a term loan, the cost is usually expressed as an interest rate plus any fees, and you repay principal and interest over a set schedule. With invoice finance, cost is often split into elements that relate to advancing cash against invoices, how long your customer takes to pay, and what services are bundled.
If you want a refresher on comparing costs properly across structures, especially where products quote fees differently, Funding Agent’s explainer on factor rate vs APR can help you avoid comparing unlike figures.
| Feature | Kriya | Funding Circle |
|---|---|---|
| Main UK product positioning | Invoice finance and short-term funding, see Kriya invoice finance | Business term loans with monthly repayments, see Funding Circle business loans |
| How pricing is typically expressed | Quote led, often with multiple fee components for invoice finance, as described on Kriya invoice finance | Interest rate plus fees where applicable, risk based pricing explained on Funding Circle business loans |
| Repayment pattern | Typically linked to invoice settlement or short-term schedule depending on product, see product descriptions on Kriya | Fixed monthly repayments over the agreed term, see Funding Circle |
| Best for | Businesses with B2B invoices needing cash flow smoothing | Businesses wanting predictable repayments for investment or growth |
| What can change the cost materially | Invoice amounts, customer payment speed, risk assessment, and service level, described at a high level on Kriya invoice finance | Credit profile, affordability, term length, and loan size, as Funding Circle notes on its business loans page |
Worked example 1, Kriya (illustrative invoice finance style)
Assumptions (illustrative only), you have a £50,000 invoice to a UK business customer on 30 day terms. You want to release cash now to cover payroll and supplier costs, and you use an invoice finance product where the lender advances a percentage of the invoice value and charges fees based on the advance and time outstanding. Kriya describes the general concept of funding against invoices on its invoice finance page, but specific rates and fees are quote dependent.
- Invoice value, £50,000
- Customer pays on time in 30 days
- Advance, percentage varies by provider and risk profile
- Cost, depends on fee schedule and time outstanding
How to interpret the cost, the key comparison point is not only the fee percentage, but also how the cost changes if the customer pays late, or if you need to draw repeatedly across multiple invoices. If you are comparing invoice finance to a loan, you may want to estimate an effective annualised cost, but it can be misleading if you ignore cash flow benefits and the short duration. If you want a quick sense check of affordability for a loan alternative, you can model a hypothetical loan payment using a business loan calculator, then compare the monthly obligation with your expected receipts.
Worked example 2, Funding Circle (illustrative term loan)
Assumptions (illustrative only), a profitable SME borrows £50,000 over 36 months to fund equipment and hiring. Funding Circle states it offers business loans with fixed monthly repayments on its business loans page, while the interest rate and fees depend on the applicant.
- Loan amount, £50,000
- Term, 36 months
- Repayment, fixed monthly
- Rate and fees, vary by applicant and are provided in the final offer, see Funding Circle business loans
How to interpret the cost, with a term loan you can compare total repayable over the full term, and you can ask about fees such as arrangement fees or early settlement policies if relevant. Funding Circle’s borrower information and FAQs are typically routed through its Help Centre, which is the best place to confirm current policy wording.
Speed and service
Speed is often a deciding factor, but it is also the area where marketing language can be misunderstood. The practical timeline is usually driven by how quickly you can provide bank statements, management accounts, ID checks, and any documentation needed for security or invoice verification.
Kriya, speed and service considerations
Kriya positions its products as digitally delivered, with online application and account management messaging across invoice finance and business loans. However, the exact time to decision and funding can vary, and may depend on the invoices, customer profile, and any verification steps. If you need a time critical answer, the most reliable route is to confirm current timelines directly via Kriya contact.
Funding Circle, speed and service considerations
Funding Circle promotes an online application journey for its term loans and explains parts of the process in official borrower guidance, see business loans and its Help Centre. Decision and funding times depend on underwriting and documentation, and may be longer if additional checks are required. If you are planning around a payment date, do not assume funds are same day unless the lender states it for your offer and you have completed all required steps.
Who each lender suits
These scenarios are practical starting points, not a substitute for an offer. The aim is to match product mechanics to business cash flow.
Scenario A, you invoice other businesses and cash flow is lumpy
If you issue B2B invoices and regularly wait 30 to 60 days to be paid, invoice finance can be a closer fit than a term loan because it is designed to release cash tied up in receivables. Kriya highlights this use case on its invoice finance page.
Scenario B, you want predictable monthly repayments for growth investment
If you are funding a project with a multi month payback, for example hiring, equipment, or marketing, a fixed repayment term loan can be easier to budget for. Funding Circle presents fixed monthly repayments as part of its core offer on its business loans page.
Scenario C, you want to avoid tying funding to specific invoices
If you would prefer finance that is not linked to debtor payments, a term loan can avoid the operational overhead of invoice processing. Funding Circle’s standard product is a term loan, described on its site. Alternatively, if you still want working capital but not invoice linked, you could explore working capital loans and compare structures.
Scenario D, you have short-term gaps and want flexibility
Some businesses need short bursts of cash rather than a multi year commitment. Depending on the product and your profile, invoice finance or short-term loans can be a better match than longer repayment schedules. If you are comparing this category, Funding Agent’s overview of short term business loans can help you set expectations for terms and repayment cadence.
How to apply
Application details can change, so treat this as a checklist and confirm current requirements on each lender’s official pages.
How to apply to Kriya
- Choose the product type, invoice finance or business loan, using Kriya’s official pages such as invoice finance or business loans.
- Prepare typical documents that are commonly requested for business finance, for example recent bank statements, basic business details, and for invoice finance, invoice and debtor information. Kriya does not publish a single universal document list on the main product pages, so confirm via Kriya contact.
- Complete the online enquiry or application flow and respond promptly to any follow up questions, delays usually come from missing documents or needing extra verification.
- Review the facility terms carefully, including any fees, notice periods, and what happens with late paid or disputed invoices, the lender should provide these in your offer documentation.
How to apply to Funding Circle
- Start from Funding Circle’s official business loans page and follow the application prompts.
- Read current borrower guidance in the Help Centre, especially around eligibility, required information, and how decisions are made.
- Prepare typical documents such as bank statements and company information, and be ready for identity and fraud prevention checks as part of normal lending processes, Funding Circle describes the process at a high level in its support content.
- Once offered, check the repayment schedule, any fees, and any security or guarantee requirements, as explained in relevant Funding Circle borrower information in the Help Centre.
Final verdict
Kriya and Funding Circle can both be sensible options, but they solve different problems. The right choice usually comes down to whether your funding need is tied to invoices and short-term working capital, or whether you want a standard loan with a set term and predictable repayments.
Choose Kriya if
- Your core issue is slow paying customers and you want to unlock cash from invoices, consistent with Kriya’s invoice finance positioning.
- You are comfortable with a facility whose cost and mechanics depend on invoice settlement timing and debtor profile.
- You want a product set that is oriented to cash flow smoothing rather than a multi year amortising loan.
- You can supply the invoice and customer information required for underwriting and ongoing use.
Choose Funding Circle if
- You want a term loan with fixed monthly repayments, as described on Funding Circle business loans.
- You are planning for a defined investment and prefer a clear schedule over invoice linked repayment dynamics.
- You want to compare offers using standard loan metrics such as APR and total repayable, with rates that vary by applicant.
- You can provide the documentation and pass the checks described in Funding Circle’s Help Centre.
If you would like help comparing offers or exploring alternatives alongside these two lenders, you can start at Funding Agent and submit a quick form.
