ThinCats vs Funding Circle Business Loans Comparison 2026
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- ThinCats focuses on larger, often secured loans for mid sized SMEs, while Funding Circle serves smaller established businesses with lower loan amounts.
- Funding Circle usually suits quicker, fully online applications, whereas ThinCats typically involves a relationship led, more bespoke process.
- Security and covenants are more prominent with ThinCats, while Funding Circle more often uses unsecured structures with personal guarantees for directors.
- Choice between the two should be based on your loan size, security position, trading history and preference for either bespoke structuring or streamlined standardised lending.
1. Products and terms at a glance
ThinCats
ThinCats is an alternative lender focused on debt funding for mid sized UK businesses. According to its funding solutions page, it typically provides term debt solutions from £1m up to £30m for owner managed and sponsor backed businesses, including funding for growth, acquisitions, refinancing and recapitalisations. The same page explains that its debt structures can include cashflow loans and asset backed facilities, often tailored to each transaction.
ThinCats states that it supports mid sized SMEs across a wide range of sectors throughout the UK based on its main site overview. For owner managed businesses, its owner managed businesses criteria page describes typical parameters such as loan amounts of £1m to £30m, up to around 4x EBITDA for cashflow loans and up to a maximum loan to value of around 85 percent for asset backed deals. Exact tenor ranges for ThinCats loans are not consistently specified in public borrower facing material as of early 2026, so available term lengths are best treated as varies and determined deal by deal.
ThinCats funding is generally secured. The owner managed businesses criteria page notes that loans are underpinned by measures such as EBITDA multiples and LTV caps, and a separate article on security in SME lending sets out how ThinCats expects security and covenants to reflect the level of risk the borrower can carry over the loan term based on its article on demystifying security for cashflow loans. Together these sources indicate that ThinCats normally requires security, which may include debentures, charges over assets or share security, determined on a case by case basis.
Funding Circle Business Loans
Funding Circle is a UK based SME finance platform providing standardised small business term loans. Its small business loans page describes unsecured business loans from £10,000 to £750,000 for established limited companies and partnerships. On the same page, Funding Circle indicates that loan terms are available up to six years and that many loans are provided on an unsecured basis without the borrower pledging specific assets as security, although other forms of support such as personal guarantees may still be required.
Funding Circle positions its loans as suitable for a range of purposes such as working capital, growth projects, hiring staff and refinancing based on the use of funds descriptions on its “How to get a business loan” guide. The platform focuses on standard term loans rather than specialist products such as invoice finance or asset finance, although it has historically offered other products through partners. Because product sets can change, what is available beyond core term loans should be confirmed directly with Funding Circle at the time of application.
Comparative positioning
Based on loan size and structure, ThinCats and Funding Circle occupy different segments of the SME debt market. ThinCats loan amounts typically start at £1m and can reach £30m or more for some owner managed and sponsor backed transactions according to ThinCats’ own criteria page, and are usually secured and structured around business fundamentals such as EBITDA and asset coverage. Funding Circle’s loans, in contrast, range from £10,000 up to £750,000 with standardised unsecured term loan structures as stated on its product page. As a result, ThinCats is primarily relevant to larger mid market SMEs carrying out acquisitions or major refinancing, while Funding Circle is more accessible to a broader base of smaller but established trading businesses.
2. Costs and repayments in practice
ThinCats
ThinCats does not publish a generic rate card for borrowers. Public pages describing its borrower proposition focus on flexibility of structure and tailoring of covenants rather than headline pricing, for example its article on flexible funding. In the absence of specific published margins or APRs, ThinCats loan pricing should be treated as varies and negotiated per transaction. The ultimate cost is likely to reflect risk factors such as leverage level, quality of security, sector and sponsor backing.
Repayment structures under ThinCats facilities can be flexible. Its articles on cashflow lending and security explain that covenants are set to match the risk a company can bear over the life of the loan based on its security article, which implies that amortisation profiles and bullet or part bullet structures are arranged case by case. Some deals may include interest only periods followed by stepped capital repayment although specific patterns are not consistently disclosed in public borrower guides, so repayment schedules should again be regarded as varies.
Funding Circle Business Loans
Funding Circle is more transparent about typical pricing structures for its small business loans. The product page states that interest rates start from a given percentage per year and that the lender charges a single upfront fee when a loan is taken out while charging no fee for early settlement. However, the exact rate and fee level a given borrower will pay depends on risk banding and is not fixed for all applicants, so for comparison purposes the appropriate description is varies by credit profile.
Funding Circle offers a business loan calculator which lets prospective borrowers estimate monthly repayments by entering loan amount and term. The calculator clarifies that results are indicative only and that final pricing depends on full underwriting. According to its support material, repayments are usually collected monthly by direct debit over a fixed term, with interest accruing on the outstanding balance in line with agreed rates based on its business loans support page.
Illustrative comparison table
The table below summarises public, high level cost and repayment features of each lender. Where specific figures are not disclosed in current official materials as of early 2026, entries are marked as varies.
| Feature | ThinCats | Funding Circle Business Loans |
|---|---|---|
| Typical loan size range | £1m to £30m, owner managed and sponsor backed businesses based on ThinCats criteria | £10,000 to £750,000 based on Funding Circle small business loans page |
| Typical term range | Varies, deal specific, tenor not consistently disclosed in public guides | Up to 6 years based on Funding Circle product page |
| Security | Security usually required, including cashflow and asset backed structures based on ThinCats security article | Often unsecured business loans, but personal guarantees or other support may be required based on product page |
| Interest rate disclosure | No standard headline rates published, pricing varies by transaction | Indicative starting rate published, but final rate varies by credit profile based on Funding Circle product page |
| Fees | Detailed borrower fee schedules not published as of early 2026, fees vary | One off upfront fee when loan is taken, no early settlement fee, actual fee percentage varies based on loan calculator page |
| Repayment structure | Flexible, may include amortising and potentially interest only components, varies by deal based on flexible funding article | Fixed monthly repayments over agreed term with option to repay early without fee based on support page |
Worked example 1, smaller loan scenario
This example is illustrative and is based on publicly verifiable structural features, not on specific quoted rates.
Assume a business wants to borrow £150,000 over five years for working capital. This loan size is within Funding Circle’s stated range but below ThinCats’ typical minimum size of £1m for owner managed businesses based on its criteria. In practice, such a borrower is far more likely to use a platform such as Funding Circle.
If the business uses Funding Circle, the borrower would request £150,000 over 60 months via the online application process and the platform would provide an indicative monthly repayment using its loan calculator. The final monthly repayment would depend on the rate and fee offered after underwriting, which varies according to the firm’s financials and credit profile. Repayments would then be collected monthly by direct debit based on its support page.
By contrast, the same requirement would be below ThinCats’ standard funding size, so even if a facility were theoretically available the transaction would be atypical according to current public statements. The example therefore illustrates how Funding Circle is structurally aligned to smaller loan needs, whereas ThinCats concentrates on larger transactions.
Worked example 2, larger leveraged transaction
Consider an established mid sized company that wishes to fund a management buyout valued at £8m. On its owner managed businesses page, ThinCats notes that it commonly offers cashflow loans up to around 4x EBITDA and asset backed loans with LTV up to around 85 percent, within a loan size range of £1m to £30m. This makes an £8m term facility potentially within ThinCats’ scope, subject to due diligence and structuring.
In this scenario, ThinCats might consider a secured cashflow loan of up to 4x the target’s sustainable EBITDA with supporting security, subject to covenant tests described conceptually in its security article. Repayments could involve a tailored amortisation schedule, potentially with some capital repayment deferral in early years to accommodate integration or investment plans, though the exact structure would be negotiated and varies. Fees and margins would be priced specifically for the risk profile and therefore also vary.
Funding Circle’s maximum loan size of £750,000 based on its product page is significantly below the £8m requirement. Even if the business were eligible for the maximum amount, it would still need additional funding sources. The example demonstrates how ThinCats is better aligned for larger leveraged or acquisition led transactions where bespoke structuring, covenants and security are integral.
3. Speed and service
Application and decision times
Funding Circle’s borrower marketing emphasises quick, online decisions. Its step by step guide refers to a short online application and automated assessment, but stated decision times are subject to change so the most accurate description is varies, with faster decisions typically available for simpler applications that meet standard criteria.
ThinCats generally operates through a relationship led, deal by deal approach. Public borrower materials emphasise tailored solutions and close collaboration with advisers and sponsors rather than specific turnaround times as seen across its funding solutions content. Consequently, assessment and completion timelines are best described as varies and will depend heavily on transaction complexity, financial due diligence and legal work.
Customer support and complaints handling
Funding Circle provides a structured support environment and sets out routes for queries and complaints. Its main UK support hub explains how to contact teams regarding business loans, asset finance and other products based on its support overview. For complaints specifically, its complaints information page outlines how to raise a complaint by email, phone or post and summarises what borrowers can expect in terms of acknowledgement and response, including reference to escalation options.
ThinCats publishes a contact and complaints route via its contact page, which sets out the email address for complaints and gives general contact information. The same site explains that ThinCats is an alternative finance provider operating in the UK mid market based on its main site, but does not include a detailed borrower FAQ comparable to Funding Circle’s public support hub as of early 2026. For both lenders, if your complaint relates to regulated activities you may in some circumstances have the right to refer unresolved issues to the Financial Ombudsman Service, subject to eligibility criteria described on the Ombudsman’s own site.
4. Who each lender suits
ThinCats
Given its minimum typical loan size of £1m and focus on mid sized SMEs, ThinCats is generally more suitable for businesses that:
- Have established trading histories and meaningful EBITDA, for instance sufficient to support cashflow loans up to around 4x EBITDA based on its owner managed businesses criteria
- Require funding for acquisitions, management buyouts, large capex programmes or balance sheet recapitalisation rather than shorter term working capital needs
- Can provide appropriate security and are comfortable with covenants that monitor leverage, interest cover and similar ratios as described conceptually in ThinCats’ security guidance
- Value a relationship led approach with scope for bespoke structuring and flexibility over an extended term instead of standardised product terms
ThinCats is less suited to very small businesses, early stage start ups or borrowers seeking facilities significantly below £1m, because these needs fall outside the ranges highlighted on its core borrower pages.
Funding Circle Business Loans
Funding Circle is aimed at established but typically smaller SMEs seeking relatively modest loan sizes compared with the mid market. Its own materials and independent lender reviews describe core eligibility criteria such as at least two years of trading history and filed accounts, no recent major adverse credit events and UK registration based on a synthesis of its product page and an external eligibility summary on Rangewell’s Funding Circle review. Since these parameters may change over time, detailed thresholds should be treated as varies and checked directly at application.
Funding Circle is generally more suitable for businesses that:
- Need between £10,000 and £750,000 for working capital, expansion, marketing or refinancing based on its product page
- Appreciate a fully online process with quick in principle decisions using automated assessment
- Prefer relatively standardised unsecured term loans rather than structured deals involving extensive covenants and multiple security layers
- Are comfortable providing personal guarantees where requested, a feature discussed in more detail in general guidance such as Funding Agent’s guide to personal guarantees
Funding Circle is less likely to meet the requirements of larger mid market companies seeking multi million pound acquisition or leveraged finance packages, where lenders like ThinCats or traditional banks that specialise in structured deals are more typical.
5. How to apply
Applying to ThinCats
ThinCats describes its borrower engagement largely through high level commentary and case studies rather than a standardised online journey. Its funding solutions page outlines three main borrower categories, owner managed businesses, sponsor backed businesses and professional services, each with indicative criteria and a suggestion that discussions with ThinCats’ regional teams or advisers are the starting point.
In practice, applying to ThinCats typically involves:
- Initial contact via introducers, corporate finance advisers or direct enquiry using details on ThinCats’ contact page
- Sharing recent management accounts, historic statutory accounts and forecasts so that ThinCats can assess EBITDA, cash generation and leverage capacity in line with the principles described on its owner managed businesses criteria
- Providing details of proposed security such as property, business assets or shares, which connect to ThinCats’ focus on secured cashflow loans and LTV caps as discussed in its security article
- Working with ThinCats and advisers to structure covenants, pricing and repayment profile, often culminating in a term sheet and full legal documentation
Because there is no self service portal for instant outcome on multi million pound transactions, the overall application journey for ThinCats is relationship driven and can take weeks or months depending on complexity.
Applying to Funding Circle Business Loans
Funding Circle presents a clearly defined online process for its small business loans. Its how to get a business loan page explains that applications start with an online form which can take around several minutes to complete, followed by an automated and manual assessment using information such as filed accounts and bank statements. The same guide notes that Funding Circle will provide a decision in principle and, if approved, a loan offer setting out rate, fees and monthly repayment figure, although exact timescales vary.
The typical steps involve:
- Completing the online application with company details, requested amount and loan purpose as shown in the screenshots and narrative on Funding Circle’s step by step guide
- Connecting business bank accounts or uploading statements and recent accounts to support underwriting
- Reviewing any conditions such as personal guarantees and providing identity documents in line with Funding Circle’s standard KYC expectations
- Signing the borrower agreement and terms, which are published in full on its borrower terms and conditions page
- Receiving funds to the business bank account after completion, with regular repayments collected automatically as explained on its business loans support page
This process is largely self directed and can, in straightforward cases, be significantly faster than the typical timetable for a complex ThinCats transaction, although exact funding times are not guaranteed and vary by case.
6. Final verdict
ThinCats and Funding Circle Business Loans both serve UK SMEs but at different scales and with different approaches to structuring and delivery. ThinCats operates in the mid market space, providing tailored secured loans from £1m to £30m or more with detailed attention to covenants and security based on its criteria page. Funding Circle, by contrast, delivers unsecured and lightly secured term loans between £10,000 and £750,000 through a predominantly online process based on its product information, supported by a structured support and complaints framework described on its support hub.
Ultimately, the right choice depends less on which lender is “better” overall and more on where your business sits in terms of size, borrowing requirement, security profile and appetite for either bespoke structuring or standardised convenience.
Choose ThinCats if:
- Your funding need is at least around £1m and may extend into the tens of millions
- You are undertaking an acquisition, management buyout, large capital investment or refinancing that requires tailored structuring
- You can offer substantial security and are comfortable operating under financial covenants aligned with mid market debt norms
- You or your advisers value direct engagement with a relationship team over a more transactional online journey
Choose Funding Circle Business Loans if:
- You need between £10,000 and £750,000 to support day to day working capital, growth projects or refinancing
- Your business is established with at least a couple of years’ trading and filed accounts, and you prefer a streamlined online application
- You are looking for relatively standardised unsecured term loans, accepting that personal guarantees may still be required
- You want transparent use of online tools such as a loan calculator and access to a clear support and complaints process
7. Sources
- ThinCats main website, company overview and positioning
- ThinCats business funding solutions, borrower categories and funding focus
- ThinCats owner managed businesses, key loan criteria and ranges
- ThinCats article on security and covenants for SME cashflow loans
- ThinCats article on flexible funding structures for SMEs
- ThinCats contact and complaints email details
- ThinCats SME Research 2025 report, context on lending activity
- Funding Circle UK homepage and platform overview
- Funding Circle small business loans product page, amounts, terms and key features
- Funding Circle “How to get a business loan” step by step guide
- Funding Circle business loan calculator and fee disclosure
- Funding Circle UK support hub
- Funding Circle business loans support and repayment information
- Funding Circle complaints information and escalation routes
- Funding Circle borrower terms and conditions
- Funding Circle Holdings plc annual report and accounts 2025
- Rangewell Funding Circle lender review with eligibility summary
- Funding Agent guide to personal guarantees in business loans
- Funding Agent overview of asset finance as a business funding option
