Funding Circle vs OakNorth: UK SME lending compared 2026
Different lenders for different ticket bands. Funding Circle is the largest UK fintech SME term-loan platform, fast and self-serve, capped at £500k. OakNorth is a PRA-regulated UK bank that starts at £500k and runs to £50m+, with bespoke pricing and a relationship-led underwriting model. The cross-over band is narrow; for most borrowers only one of these will engage.
Quick verdict
- Pick Funding Circle for £10k to £250k unsecured term loans you need decided this week.
- Pick OakNorth for £1m+ structured deals with asset backing or strong covenants.
- In the £500k overlap, run both: pricing and structure usually decide the call.
Side-by-side
| Funding Circle | OakNorth | |
|---|---|---|
| Product type | Term loan | SME term loan + bridging |
| Founded | 2010 | 2015 |
| Ticket range | £10k to £500k | £500k to £50m+ |
| Typical rate | 6.9% to 26.9% APR | Bespoke |
| Decision time | 1 to 3 business days | 7 to 14 business days |
| Soft search at quote | Yes | No |
| Limited companies only | No | Yes |
| FCA regulated | Yes | Yes |
| Companies House | 07123069 | 08595042 |
| Overall rating | 4.3 / 5 | 4.2 / 5 |
| Rate transparency | 4/5 | 3/5 |
| Eligibility clarity | 5/5 | 4/5 |
| Decision speed score | 4/5 | 3/5 |
| Decline handling | 4/5 | 4/5 |
Product overview
Funding Circle
Funding Circle is the largest UK SME term-loan platform, founded 2010, FCA regulated, with tickets from £10k to £500k and decisions in one to three business days. The published rate range (6.9% to 26.9% APR) is wide, so the headline number is rarely the offered number. Best fit: established Ltd companies with 2+ years of trading, clean credit and turnover above £100k. Companies House 07123069.
OakNorth
OakNorth Bank is a PRA-regulated UK bank founded 2015 that lends to established SMEs at the £500k to £50m+ ticket band, including bespoke commercial term loans, acquisition finance and bridging. Pricing is bespoke and strong, underwriting uses proprietary credit modelling, and decisions run 7 to 14 business days through a real banker, not a self-serve portal. Best fit: established Ltd companies with strong financials and a clear growth, acquisition or commercial real estate story. Companies House 08595042.
When Funding Circle wins
- Your ticket sits below £500k where OakNorth typically does not engage.
- You need a fast self-serve journey with a soft search at quote.
- Your business is unsecured, with strong revenue but no clear asset to lend against.
- You want a known, public-market-listed brand with a clear application process.
When OakNorth wins
- Tickets at £1m+ where OakNorth's bespoke pricing typically beats anything Funding Circle can offer.
- Acquisition or asset-backed deals where the structure is what unlocks the deal.
- Established Ltd companies with strong financials seeking serious facility size.
- You value PRA-regulated bank counterparty over fintech platform.
Cost comparison on a £500k ask
£500,000 sits in the overlap. Funding Circle on an unsecured 5-year term typically lands 11% to 18% APR depending on credit profile (around £150,000 to £230,000 total interest). OakNorth on the same £500,000 with a property or asset backing typically lands 7.5% to 9.5% APR (around £100,000 to £130,000 total interest). The premium for unsecured speed is real and measurable. If the deal can be structured around an asset and timing is not the binding constraint, OakNorth nearly always prices better.
FAQ
Why are these two compared at all?
They occupy adjacent ticket bands. Funding Circle dominates the unsecured £10k to £500k SME term-loan market. OakNorth starts at £500k. Borrowers who outgrow Funding Circle's top end often look at OakNorth next, and borrowers who undershoot OakNorth's minimum are routed to Funding Circle.
Is OakNorth always cheaper?
On asset-backed deals at £1m+, usually yes. OakNorth's bespoke pricing reflects security and proprietary credit modelling. Funding Circle's unsecured platform pricing has to cover defaults across the wider £10k to £500k book, so headline rates run higher than a secured bank facility at the same size.
Does Funding Circle offer £500k+ tickets?
Yes, up to £500k on its core product. Above £500k Funding Circle does not consistently price competitively against OakNorth or Allica Bank. The platform was built around the unsecured SME band and remains strongest there.
How long does each take?
Funding Circle decisions in 1 to 3 business days. OakNorth decisions in 7 to 14 business days because a relationship banker engages, runs proprietary modelling and runs the deal through credit committee. The trade-off is fintech speed vs bank-grade underwriting depth.
Do both require a personal guarantee?
Funding Circle almost always requires a director PG on Ltd-company unsecured loans. OakNorth structures vary by deal; PGs feature regularly but the bank can also lend purely against a company asset where the credit committee considers it sufficient.
Related comparisons
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Open our /get-quotes/ form →Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-07.