October 24, 2025

Lender Comparisons

Compare ThinCats & Funding Circle Rates & Services

Compare ThinCats and Funding Circle, two leading lenders, on interest rates, eligibility, and customer service to find the best fit for your needs.

Jesse Spence

Finance content writer / Market researcher

ThinCats vs Funding Circle: Which Lender Is Right for Your UK Business?

This guide compares two well known non‑bank lenders serving UK SMEs. ThinCats focuses on secured funding for mid‑sized businesses, usually £1 million and above. Funding Circle specialises in fast unsecured term loans from £10,000 to £750,000. We look at products, costs, timelines and service so you can match lender to need. If you need clarity on security, speed and affordability, this comparison will help you decide.

TL;DR

ThinCats is built for larger, secured loans of roughly £1m–£20m, often up to 7 years and linked to EBITDA or asset cover.
Funding Circle is for smaller, fast unsecured term loans of £10k–£750k with fixed rates and no early repayment fee.
Security: ThinCats requires security and may take debentures and property charges. Funding Circle loans are unsecured for most borrowers.
Speed: Funding Circle targets a decision in as little as 1 hour and funding within about 48 hours once accepted. ThinCats timelines are bespoke and involve underwriting, valuation and legal work.
Choose ThinCats for acquisitions, larger CAPEX or refinancing. Choose Funding Circle for quick working capital or a mid‑five‑figure project.

Products and Terms at a Glance

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

ThinCats serves established, mid‑sized SMEs. It targets secured funding for growth, acquisitions, refinancing and restructuring. The lender signals long‑term debt facilities in the £1 million to £20 million range, typically up to 7 years. It also references up to 4x EBITDA for cashflow‑based structures and up to c. 85% LTV where asset‑backed. Security is required. Loans are underwritten by a specialist team and priced to the risk and security package. Sources: ThinCats funding pages and insights.

Loan sizes: commonly £1m–£20m initial funding; transactions outside this band by exception.
Security: fixed and floating charges, property charges and personal guarantees where appropriate. ThinCats positions itself as a secured‑loan provider.
Terms: up to 7 years for amortising structures. Interest‑only or bullet elements may be available case by case.
Eligibility: UK mid‑market SMEs with two or more years’ trading and a clear use of funds. Deals are tailored and relationship‑led.
Fees: arrangement, valuation and legal fees apply. Pricing is bespoke and agreed in the offer.

Evidence: ThinCats key criteria pages show loan amounts of £1–20m, up to 4x EBITDA for cashflow loans, up to c. 85% LTV for asset‑backed loans, and terms up to 7 years. The lender announced a £1m minimum some years ago and continues to profile secured lending to mid‑sized SMEs on its site.

Pros of ThinCats

Large tickets suited to acquisitions, MBOs and refinance in the £1m+ bracket.
Secured structures can support longer terms and higher amounts than most unsecured products.
Relationship underwriting for complex cases that do not fit automated scorecards.
Capacity to blend cashflow and asset‑backed elements in one package.

Cons of ThinCats

Not suitable for smaller loans. The usual minimum is about £1m.
Security is required. Expect debentures and property charges.
Longer timelines than instant platforms due to valuation and legal steps.

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

Funding Circle is a UK platform for fast, fixed‑rate unsecured business loans. Borrow from £10,000 to £750,000. Decisions can arrive in as little as 1 hour after you apply online. Funds are typically released within about 48 hours after you accept an offer. All loans are fixed rate. There are no fees to repay early in full. Minimum trading is usually one year for eligibility. Sources: Funding Circle UK product pages.

Loan sizes: £10k–£750k.
Rates: fixed. Public pages show representative rates from 6.9% per year on selected journeys.
Terms: commonly six months to six years.
Fees: no early settlement fee if repaid in full. An origination fee is included in the quoted APR.
Eligibility: at least 12 months’ trading for most borrowers, plus UK‑based applicants and affordability checks.

Pros of Funding Circle

Fast decisions and simple online journey.
Fixed monthly repayments for planning.
No early repayment fee if you settle in full.
Unsecured structure avoids asset charges for typical cases.

Cons of Funding Circle

Maximum £750k may be too small for acquisitions and large CAPEX.
Pricing is risk‑based. Rates for weaker credits will be higher than the headline.
Security may still be requested in some cases, including guarantees.

Costs and Repayments in Practice

ThinCats sets pricing after underwriting. The structure often includes an arrangement fee, legal and valuation costs. The interest rate reflects the strength of cashflows and security. Terms can run up to seven years, which helps manage debt service coverage on larger tickets.

Funding Circle publishes a straightforward proposition. All loans are fixed rate, so the monthly repayment stays the same during the term. Public pages show rates from 6.9% per year for selected borrowers. It also states there is no fee to repay early in full, so you pay interest only for the time you borrow. Decisions can be as fast as one hour, with funds typically released within about two days after acceptance.

Headline cost and structure points	ThinCats	Funding Circle
Typical product	Secured term loans for mid‑market SMEs	Unsecured fixed‑rate term loans for SMEs
Loan sizes	~£1m to £20m initial funding (by exception outside range)	£10k to £750k
Repayment style	Amortising or with interest‑only components by case	Amortising fixed monthly instalments
Indicative term	Up to 7 years	6 months to 6 years
Security	Required. Property and debenture charges common	Typically unsecured. Personal guarantees common
Speed signals	Bespoke process with valuation and legal work	Decision in as little as 1 hour. Funds typically within ~48 hours after acceptance
Early repayment	By agreement per facility	No fee to repay in full early

Worked examples

Assumptions: Examples are for illustration. Lenders price case by case. Representative rates used below reflect typical secured and unsecured conditions as at 2025. Fees and VAT are estimates.

ThinCats secured term loan example: A manufacturer raises £2,000,000 over 6 years to fund an acquisition. Pricing agreed at a fixed 8.5% with a 2.0% arrangement fee. Monthly repayment on a fully amortising profile is about £35,662. Total interest about £566,000 over the term if held to maturity. Upfront costs include the arrangement fee of £40,000, valuation of £6,000 and legal fees of £10,000. Security includes a first legal charge over a trading property and a debenture. Cash‑flow effect: a predictable monthly cost with tighter covenants than an unsecured loan but larger quantum and longer term.

Funding Circle unsecured loan example: A wholesaler borrows £150,000 over 5 years at a fixed 9.9% APR. Monthly repayment is about £3,182. Total interest c. £40,900 if held for the full term. There is no early repayment fee to settle in full. If the business clears the balance after 24 months, the interest saved is about £19,900 relative to running the full term, subject to the settlement figure confirmed at the time. Cash‑flow effect: fixed instalments for planning, with flexibility to repay early if cash improves.

ThinCats vs Funding Circle – SME Lending Dashboard

ThinCats vs Funding Circle: a fast, visual guide for UK SMEs

This dashboard turns the guide into eight tabs. Read the bars as ranges and the dots as typical points where shown. Use it to judge rate sensitivity, usable loan size, term trade offs, and how quickly money can land. It helps you pick between a larger secured facility and a quick unsecured loan. Figures reflect the supplied comparison and worked examples.

The bars show each lender’s likely rate band; the dot marks a typical point from the examples. ThinCats is shown at 8.5% based on the secured case study. Funding Circle is shown at 6.9% from its representative rate. Pricing shifts with credit quality, sector risk, security and term. A 1% gap on £100,000 over 5 years moves the monthly by about £50 and the total interest by about £2,900. Favour the lower typical if cash is tight; accept a wider band if your strength can pull pricing down.

Bars map minimum to maximum. ThinCats aims at c. £1m–£20m secured, fit for acquisitions, CAPEX and refinance. Funding Circle runs £10k–£750k unsecured for working capital and projects. For fit out or stock, the platform’s band suits speed and size. For larger capex or buyouts, the ThinCats band matters. Remember affordability and security set the real ceiling, not just the headline max. Prepare bank statements, accounts and a clear use of funds early.

Longer terms cut the monthly but raise total interest. ThinCats lists up to 7 years on secured structures. Funding Circle offers about 6 months to 6 years on fixed, unsecured loans. At £50,000, 3 years vs 6 years at 8% means c. £1,566 vs £877 per month and roughly £6,800 extra interest across the term. Longer terms fit seasonal cash flow or growth plans. Shorter terms suit faster deleveraging. Check early settlement rules and any fees.

The bars split time from application to decision, then decision to funds. Funding Circle shows a decision in about 1 hour and funds in about 2 days once accepted. ThinCats timings vary by deal; the bars use midpoints for secured property‑style completions. If payroll is due in 5 days, the platform’s faster path is safer. What slows deals: document checks, bank statements, valuation and legal work. Fast paths assume clean files and quick signatures.

We plot application and late fees where published. Funding Circle builds any origination fee into APR and shows no early repayment fee for full settlement; site pages do not list a separate application or late fee. ThinCats fees are bespoke and set in the offer. Legal and valuation costs are not in this chart. £150 on a £20,000 loan adds 0.75% to day one cost. Compare fees alongside rate and term, and confirm exit or settlement terms.

Arrangement fees are calculated on the principal. They may be deducted upfront or added to the balance by product. ThinCats deals commonly include an arrangement fee; the worked example shows 2.0%. Funding Circle does not publish a standard percentage and wraps the fee into APR. Worked example: 1.5% on £250,000 equals £3,750. A lower rate with a higher fee can still win over long terms. Model both.

The radar uses a simple score. Booleans count as 1. Integrations are a count. UX is on a 1–5 scale. Where features are not published, a 0 is shown as a placeholder. Open banking can speed underwriting. APIs help multi account groups. Mobile support helps owners on the move. Busy founders and multi entity groups gain the most. Ask your contact to confirm portal features.

Axes split satisfaction. Stars sit on the left axis and NPS on the right. Review volume matters because bigger samples are steadier. Service can vary by case, so treat scores as guides. Read recent reviews and match themes to your needs. Focus on speed, documents and portal ease. If reviews are thin, ask advisers for live feedback.

Speed and Service

ThinCats uses relationship underwriting. Expect an initial conversation, an information request, and then term sheet discussions. Third‑party valuation and lawyers are standard for secured facilities. Timelines vary by deal complexity. Larger, multi‑property transactions can take several weeks or more from heads of terms to completion.

Funding Circle prioritises speed. You can apply online in minutes. It advertises a decision in as little as one hour. If approved and accepted, funds are usually released within about 48 hours. The platform provides fixed terms and a simple early settlement policy. Telephone support is available during the process.

Who Each Lender Suits

Typical scenario for ThinCats

You are buying a competitor or consolidating group debt across subsidiaries. You need £3m over six to seven years and are prepared to offer property security and guarantees. Your EBITDA and cash conversion can support service at a 1.5x coverage ratio. You value a lender that can combine cashflow and asset‑backed elements in one structure and work closely with your advisers.

Typical scenario for Funding Circle

You need £100k for inventory and marketing ahead of a seasonal peak. You want speed and simple documentation. You have at least a year of trading, profitable results and strong bank statements. You prefer a fixed rate with no fee to repay early if a larger bank facility lands later. Funding Circle fits this brief.

How to Apply

Application steps and documentation required for each lender.

ThinCats: Start with an introductory call or enquiry on the ThinCats website. Be ready with your latest accounts, management information, cashflow forecasts and a clear funding case. Property details are needed where relevant. After an initial review, the lender issues heads of terms. Due diligence follows, including valuation and legal work. Completion proceeds once conditions precedent are met and security perfected.

Funding Circle: Apply online. The site indicates decisions in as little as one hour. You will need basic company data, filed accounts or management information, recent bank statements and details of directors. If approved, you receive a no‑obligation quote. Once you accept, the platform completes checks and then releases funds, typically within about 48 hours. Repayments are by monthly Direct Debit. If you repay in full early, there is no fee.

Final Verdict: Which Lender Fits Your Business Best

Choose ThinCats if…

You need £1m–£20m with security for acquisitions, refinancing or growth.
Your business has strong EBITDA and assets to support longer terms.
You want relationship underwriting and tailored covenants.
You can accommodate valuation and legal processes and a longer timeline.

Choose Funding Circle if…

You want a fast unsecured loan between £10k and £750k.
You prefer fixed monthly payments and the option to repay early in full with no fee.
You have at least 12 months’ trading and a clear working capital use case.
You need funds in days rather than weeks.

Both lenders are credible in their segments. ThinCats suits larger, secured transactions where quantum and term matter more than speed. Funding Circle suits smaller, fast unsecured needs where simplicity and fixed repayments are attractive. If you are unsure which route to take, speak with Funding Agent. We compare live offers and help you prepare a strong pack. Ready to start? Use our short enquiry form.

Sources

ThinCats key criteria for owner‑managed businesses (loan amounts £1m–£20m, up to 4x EBITDA, up to c. 85% LTV, term up to 7 years)
ThinCats insights (positioning and focus on mid‑sized SMEs; £1m–£20m funding)
ThinCats announcement increasing minimum to £1m (historic note on minimum loan size)
Funding Circle small business loans (loan sizes £10k–£750k; decision timing; eligibility highlights)
Funding Circle loan calculator page (rates from 6.9% per year; speed; funding timeline)
Funding Circle interest rates explained (fixed rates; no early repayment fee for full settlement)
Funding Circle working capital page (loan band and speed reiterated)

Internal links: Finance concept links in this article follow Funding Agent’s taxonomy for accuracy and consistency.

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FAQs

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