Lender review · Term loan
Funding Circle
- Reviewed April 2026
- Editor Oliver Mackman
- Companies House 07123069
- Methodology Public
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.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 26 April 2026
At a glance
- Product
- Term loan
- Ticket size
- £10k to £500k
- Typical rate
- 6.9% to 26.9% APR
- Decision time
- 1 to 3 business days
- Soft search at quote
- Yes
- Limited companies only
- No
- FCA regulated
- Yes (check the FCA Register)
- Companies House
- 07123069
- Founded
- 2010
Scores against our methodology
- Rate transparency4/5
- Eligibility clarity5/5
- Decision speed4/5
- Decline handling4/5
How Funding Circle works
Funding Circle operates as a term loan provider in the UK SMB market. 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.
The product mechanic is straightforward in shape but the underwriting is sector-specific. Tickets sit in the £10k to £500k band, decisions land within 1 to 3 business days, and the published rate range is 6.9% to 26.9% APR. Soft search at quote means no impact on your credit file at the eligibility stage. Funding Circle is FCA regulated.
Where Funding Circle fits best: established ltd companies, working capital £25k-£250k, borrowers wanting decision speed. Where it does not fit: sub-2-year trading, ccj history, sole traders.
Pricing examples
Worked examples using Funding Circle's published rate range (6.9% to 26.9% APR). Simple-interest approximation, mid-band rate. Real offers will differ and should be confirmed on the lender quote.
| Ticket | Term | Estimated total cost | Approx monthly |
|---|---|---|---|
| £25,000 | 24 months | £33,450 | £1,394 |
| £50,000 | 36 months | £75,350 | £2,093 |
| £100,000 | 48 months | £167,600 | £3,492 |
Indicative only. Confirm on a Funding Circle quote.
Eligibility
- Trading time: typically 12 to 24 months minimum for the cleanest pricing. Weakness flagged: Sub-2-year trading.
- Turnover floor: not always published. As a working figure, expect a £100k+ turnover requirement for term loans of £50k+. Smaller tickets and MCA structures have lower floors.
- Sector exclusions: none specifically published; check directly for regulated, gambling, or adult sectors..
- Credit profile: CCJ history.
- Company structure: Limited companies and (in some cases) sole traders / partnerships.
- Best fit: Established Ltd companies; Working capital £25k-£250k; Borrowers wanting decision speed.
Pros
- + Soft-search application; no credit-file footprint at quote stage.
- + Eligibility criteria published up front, not hidden behind a quote.
- + Decisions in 1-3 days; fast even by UK SME standards.
- + Established brand, FCA regulated, public market-listed.
Cons
- − Headline rate (6.9%) only available to top-tier applicants; typical offer is higher.
- − Personal guarantee almost always required for limited-company borrowers.
- − Less competitive on the £100k+ ticket band than specialist lenders.
Best for
- · Established Ltd companies
- · Working capital £25k-£250k
- · Borrowers wanting decision speed
Weak at
- · Sub-2-year trading
- · CCJ history
- · Sole traders
When to use Funding Circle
Use Funding Circle when
Your application matches the best-fit profile: established ltd companies, working capital £25k-£250k, borrowers wanting decision speed. The published ticket range (£10k to £500k) covers your ask, the decision speed (1 to 3 business days) fits your cash-gap timeline, and the rate range (6.9% to 26.9% APR) is acceptable to you given your credit profile. Soft search at quote means there is no downside to running an eligibility check before committing.
Do not use Funding Circle when
Your profile sits in the weak-at list: sub-2-year trading, ccj history, sole traders. Funding Circle will likely decline, and the decline itself can sit on broker records for 90 days. If you have any of these flags, route directly to a specialist (post-decline lender, MCA against card flow, asset-backed alternative) rather than using Funding Circle as a screen.
FAQs
What is the minimum trading time for Funding Circle?
Funding Circle is weaker on sub-2-year trading. As a working figure, expect Funding Circle to ask for at least 12 months of trading for most product lines, and 24 months for the cleanest pricing.
Does Funding Circle require a personal guarantee?
Most UK SMB lenders require a personal guarantee from at least one director. Funding Circle is no exception in the standard case. The few exceptions: asset-backed lending where the asset itself stands as security, and a small number of MCA structures where card flow is the underwriting basis. For term loan specifically, expect a PG to be requested.
How fast does Funding Circle fund?
Funding Circle quotes 1 to 3 business days for an underwriting decision. Funding to bank account typically follows within one to three working days of acceptance, subject to KYC, signed documents, and (where applicable) registration of any debenture or charge.
What rate should I expect from Funding Circle?
Funding Circle's published range is 6.9% to 26.9% APR. The headline number is rarely the offered number. Rate transparency on this lender scores 4/5 in our methodology. Expect the cleaner end of the band only if you have 2+ years of trading, clean credit, and turnover comfortably above the lender's stated floor.
What happens if Funding Circle declines me?
If Funding Circle declines, you have three realistic next steps. First, ask for the decline reason in writing, most reputable UK lenders will tell you. Second, route the application to a specialist post-decline lender (Bizcap, JPM Capital, Bolton Finance) where credit issues are the constraint, or to an asset-backed alternative where security is available. Third, use a broker panel to fan the application across the lenders most likely to accept your specific decline reason. Funding Circle scores 4/5 on decline handling in our methodology.
Where to apply
Apply directly via www.fundingcircle.com/uk, or use our free quote form to be matched across the UK broker panel most likely to approve your specific profile, not just Funding Circle.
Specialty alternatives
- · LendingCrowd, Edinburgh-based UK SME term lender that launched in 2014 as a P2P platform and now funds via a mix of retail and institu...
Funding Circle compared head-to-head
Side-by-side breakdowns of rate, ticket band, decision speed, eligibility and best-fit for UK SMEs.
- Funding Circle vs Capify
- Funding Circle vs Capital on Tap
- Funding Circle vs Close Brothers
- Funding Circle vs Fleximize
- Funding Circle vs Got Capital
- Funding Circle vs Haydock Finance
- Funding Circle vs Investec
- Funding Circle vs Just Cashflow
- Funding Circle vs Kuflink
- Funding Circle vs Liberis
- Funding Circle vs Propel
- Funding Circle vs Sonovate
- Funding Circle vs Starling Bank
Reviewed by Oliver Mackman, Director. Last reviewed: 26 April 2026. Lender website: www.fundingcircle.com/uk.