October 22, 2025
Lender Comparisons

MCLFinance vs. Funding Circle Comparison

Compare MCLFinance and Funding Circle for tailored loan solutions. Uncover their offerings, rates, and application processes to make informed decisions.
James Laden
Co-founder and CEO

Choosing between MCLFinance and Funding Circle? MCLFinance focuses on fast unsecured business loans and merchant cash advances that repay as a share of card takings. Funding Circle specialises in fixed rate term loans, a FlexiPay line of credit that spreads invoices over 1, 3, 6, 9 or 12 months, and asset finance delivered via a panel of specialist partners.

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TL;DR
  • Funding Circle offers larger loan sizes and terms up to six years with fixed rates and a one-off completion fee.
  • MCLFinance focuses on shorter terms up to 24 months and smaller sums, with rapid same‑day funding for eligible borrowers.
  • Both typically require a personal guarantee; security is not usually needed for standard unsecured loans.
  • Funding Circle suits established firms needing £50k–£750k with predictable cash flow.
  • MCLFinance suits SMEs that need £5k–£100k quickly to bridge gaps or seize opportunities.
  • If you want flexibility to overpay or settle early without a fee, Funding Circle advertises this; MCLFinance allows early repayment too according to third‑party guidance.

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Products and Terms at a Glance

MCLFinance overview, loan sizes, fees, repayment style, terms, eligibility

MCLFinance provides unsecured business loans aimed at SMEs that need quick access to cash. Its site advertises unsecured loans from £5,000 to £100,000 and highlights decisions and payouts in hours for qualified applicants. Independent reviews also note fast processing and strong customer service. MCLFinance states it services loans and is not a direct lender, so pricing and agreements may be issued from a funding partner it services.

  • Loan sizes: £5,000 to £100,000 (website wording and third‑party profiles).
  • Terms: 1 to 24 months for most products; short, fixed repayment schedules.
  • Repayment style: Fixed instalments collected by Direct Debit or standing order.
  • Fees: Not publicly listed in detail. Expect risk‑based pricing; commission may be paid to introducers.
  • Speed: Same‑day decisions with funds possible within 4 hours for eligible cases.
  • Eligibility: Typical guidance shows at least 12 months trading and around £15,000 monthly turnover. A director personal guarantee is usually required.

Sources: MCLFinance website pages and independent lender profiles and reviews.

Pros of MCLFinance

  • Very fast underwriting and payouts for smaller sums.
  • Short terms help limit total interest paid in months when cash flow is tight.
  • Early repayment allowed according to third‑party guidance.
  • Clear focus on unsecured, short‑term working capital.

Cons of MCLFinance

  • Short terms can mean higher monthly repayments.
  • Pricing is not fully published; quotes vary by risk and product.
  • Usually requires a director guarantee.
  • As it services loans and is not a direct lender, documentation may come from a funding partner.

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MCLFinance vs Funding Circle: pick with confidence today

This dashboard turns the comparison into eight quick charts. Read each tab for one decision: price, amount, term, speed, fees, arrangement cost, digital ease, and public ratings. Bars show ranges where published. Dots mark typical or worked examples. Use it to choose the best route for a UK SME across unsecured loans, merchant cash advance, a line of credit, or asset finance via partners.

MCLFinance vs Funding Circle: pick with confidence today

This dashboard turns the comparison into four quick charts. Read each tab for one decision: amount, term, speed, and fees. Bars show ranges where published. Dots mark typical or worked examples. Use it to choose the best route for a UK SME across unsecured loans or partner options.

Ranges show unsecured lending ceilings from the lenders. MCLFinance targets £5k to £100k for fast working capital. Funding Circle covers £10k to £750k for larger projects, with asset finance via partners if equipment is the goal. Your usable ceiling depends on affordability and any security offered, not just the headline max.

Bars show the term ranges in years. Longer terms cut monthly cost but increase total interest. At £50,000, 3 years vs 6 years at 10.9% APR changes the monthly to about £1,635 vs £949 and adds roughly £9,494 of interest. Confirm early settlement rules before you draw.

Bars decode timing: application to decision, then decision to funds, shown as midpoints. The marker shows the fastest path. MCLFinance advertises same day decisions and funding in as little as 4 hours. Funding Circle shows decisions in about an hour with funds typically within 48 hours. Fast paths assume clean files and quick signatures.

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Funding Circle overview, loan sizes, fees, repayment style, terms, eligibility

Funding Circle is a large UK business lender offering fixed‑rate term loans with a clear fee structure. Borrow between £10,000 and £750,000. Terms run from 6 months to 6 years. Rates start from 6.9% per year. There is a simple one‑off completion fee. You can overpay or settle early in full without an early settlement fee. Decisions can arrive in as little as 1 hour, with funds typically within 48 hours after acceptance. Many applicants use Funding Circle for working capital and growth projects.

  • Loan sizes: £10,000 to £750,000.
  • Terms: 6 months to 6 years.
  • Repayment style: Fixed monthly repayments, amortising over the term.
  • Fees: One‑off completion fee when you take the loan. No early settlement fee if you clear in full.
  • Speed: Decision in as little as 1 hour; funds typically within 48 hours once you accept.
  • Eligibility: UK‑based business with at least 1 year trading for standard business loans. Personal guarantee required for unsecured loans.

Sources: Funding Circle product pages and support pages.

Pros of Funding Circle

  • Large loan sizes and long terms up to 6 years.
  • Fixed rates and equal monthly repayments simplify planning.
  • Overpayments and early settlement in full without a fee.
  • Transparent eligibility and clear help content.

Cons of Funding Circle

  • Completion fee applies when you draw the loan.
  • Personal guarantee required on unsecured loans.
  • Funding for very new firms or very low turnover may be limited.

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Costs and Repayments in Practice

Prices change with credit risk, loan size, and term. Funding Circle publishes starting rates and uses an APR model with a one‑off completion fee. MCLFinance shows amounts and speed but does not publish representative APRs. Third‑party profiles suggest risk‑based pricing and short terms, with early repayment permitted. Always check your personalised quote before you commit.

Headline cost features MCLFinance Funding Circle
Rate model Risk‑based pricing; details not fully published. Short terms up to 24 months. Fixed APR. Rates start from 6.9% p.a. One‑off completion fee. No fee to settle in full.
Typical amounts £5,000 to £100,000. £10,000 to £750,000.
Typical terms 1 to 24 months. 6 to 72 months.
Early repayment Allowed according to third‑party guidance. Allowed with no early settlement fee when paid in full.
Speed Decision and payout same day in many cases; funds within 4 hours for eligible cases. Decision in as little as 1 hour; funds typically within 48 hours after acceptance.
Security and guarantees Unsecured. Director personal guarantee usually required. Unsecured. Personal guarantee required.

Assumptions used for the worked examples below: Where a lender does not publish a representative APR or flat fee, we use clearly marked, realistic assumptions for illustration. Your quote will differ.

Worked example: MCLFinance

Scenario: A retailer borrows £25,000 over 12 months to buy stock and cover a supplier discount. MCLFinance does not publish representative APRs, so two simple models are shown to illustrate cash‑flow.

  • Flat‑fee style illustration: If the lender quoted a single fixed fee of 12% over 12 months, total repayable would be £28,000, repaid in 12 equal payments of about £2,333. There is no compounding in this model.
  • APR style illustration: If priced at 24% APR over 12 months with equal instalments, the monthly repayment would be about £2,364 and total repayable about £28,368.

Impact on cash flow: Both options require high monthly payments because of the short term. They work best when the stock turns quickly and gross margin comfortably exceeds the monthly cost.

Worked example: Funding Circle

Scenario: A manufacturer borrows £50,000 over 36 months at a fixed 10.9% APR. Funding Circle also charges a one‑off completion fee. For illustration we assume a 4% fee.

  • Monthly repayment: about £1,634.57.
  • Total repayable on the loan: about £58,844.49 over 36 months.
  • Completion fee: £2,000, normally charged when you take out the loan. If deducted from the advance, net cash received would be £48,000; if paid separately, cash in equals £50,000.

Impact on cash flow: Longer terms reduce the monthly burden. Fixed payments help with budgeting. You can also overpay or settle early without a fee, which can cut interest if trading improves.

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Speed and Service

Funding Circle provides an online application with a decision in as little as 1 hour and funds typically within 48 hours of acceptance. MCLFinance highlights very rapid processing for smaller loans, with some payouts in 4 hours. Service reviews for MCLFinance and Funding Circle both mention responsive teams. Check your documents for how early settlement and support requests are handled after drawdown.

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Who Each Lender Suits

Typical scenario for MCLFinance

You need £10,000 to £75,000 to bridge a short cash gap or buy stock. You can repay within 6 to 18 months from trading. You prefer a quick decision and simple fixed payments. Consider MCLFinance for compact, unsecured working capital when you value speed. If your firm is card‑heavy retail or hospitality and wants card‑linked repayments, also compare a merchant cash advance.

Typical scenario for Funding Circle

You need £50,000 to £500,000 for projects such as equipment, hiring, or a larger stock plan. You want fixed monthly repayments over 2 to 6 years. You have at least 12 months trading and stable accounts. Funding Circle suits longer‑dated term loans where predictable payments are key.

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How to Apply

Application steps and documentation required for each lender.

MCLFinance

  • Complete a short online form with director and company details.
  • Provide latest filed accounts, last 3 months of bank statements, and ID (passport or driving licence).
  • Expect a soft search initially. A personal guarantee from at least one director is typical.
  • On approval, e‑sign documents and set up Direct Debit. Some payouts arrive the same day.

Funding Circle

  • Apply online. Eligibility checks are automated.
  • Upload bank data and recent financials if requested.
  • Receive a decision quickly, often within an hour in straightforward cases.
  • Accept the offer and pay the one‑off completion fee. Funds usually arrive within two days.

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Final Verdict: Which Lender Fits Your Business Best

Choose MCLFinance if…

  • You need £5k–£100k fast for short‑term working capital.
  • You can handle a 6–24 month repayment schedule.
  • Your priority is speed to cash and a simple process.
  • You are comfortable providing a director guarantee.
  • You value the option to repay early to cut costs.

Choose Funding Circle if…

  • You want larger loans up to £750k with terms up to 6 years.
  • You need predictable monthly repayments and a fixed APR.
  • You want the ability to settle early or overpay without fees.
  • Your business has at least 1 year trading and stable revenue.
  • You accept a one‑off completion fee in return for scale and term length.

Neither route is inherently better. It depends on how much you need, how long you need it, and how the repayments fit your cash flow. If you want help comparing quotes across these and other UK lenders, speak to Funding Agent or send us a quick brief via our enquiry form.

Sources

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FAQs

Which lender offers more competitive interest rates, MCLFinance or Funding Circle?
Are MCLFinance's eligibility criteria stricter than Funding Circle's?
How do the fees compare between MCLFinance and Funding Circle?
Which lender processes applications faster, MCLFinance or Funding Circle?
How does customer service differ between MCLFinance and Funding Circle?
What unique features do MCLFinance and Funding Circle offer?

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