Close Brothers vs Funding Circle: Which UK Business Loan Provider in 2026?
Funding Circle edges this matchup in our 2026 UK review, scoring 4.3 of 5 against Close Brothers on 4.2. Funding Circle runs a term loan at 6.9% to 26.9% APR with decisions in 1 to 3 business days; Close Brothers runs a asset finance, invoice finance, commercial loans at Bespoke, quoted at offer. That said, the headline rating is not the whole answer: Close Brothers beats Funding Circle for established smes needing asset or invoice finance. Read the side-by-side, then jump to the "when X wins" sections for the buyer-fit logic.
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: 8 May 2026
Side-by-side
| Close Brothers | Funding Circle | |
|---|---|---|
| Product type | Asset finance, invoice finance, commercial loans | Term loan |
| Founded | 1878 | 2010 |
| Ticket range | £25k to £25m+ | £10k to £500k |
| Typical rate | Bespoke, quoted at offer | 6.9% to 26.9% APR |
| Decision time | 5 to 14 business days | 1 to 3 business days |
| Soft search at quote | No (hard search) | Yes |
| Limited companies only | No | No |
| FCA regulated | Yes | Yes |
| Companies House | 00195626 | 07123069 |
| Best for | Established SMEs needing asset or invoice finance; Print, transport, manufacturing, motor trade; Broker-introduced deals | Established Ltd companies; Working capital £25k-£250k; Borrowers wanting decision speed |
| Overall rating | 4.2 / 5 | 4.3 / 5 |
| Last reviewed | 2026-05-08 | 2026-04-26 |
When Close Brothers wins
- Genuine UK merchant bank with 145+ years of trading history.
- Multiple product lines under one underwriter (asset, invoice, commercial loans).
- Strong sector specialisms in print, transport, manufacturing and motor trade.
- PRA-regulated; FSCS deposit protection on linked savings products.
Best for
Established SMEs needing asset or invoice finance, Print, transport, manufacturing, motor trade, Broker-introduced deals.
Watch outs
- Broker-distributed, not self-serve.
- Headline rates not published; quoted at offer.
- Slower than fintech alternatives.
When Funding Circle wins
- 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.
Best for
Established Ltd companies, Working capital £25k-£250k, Borrowers wanting decision speed.
Watch outs
- 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.
FAQ
Close Brothers or Funding Circle: which is the better UK business loan in 2026?
Funding Circle scores higher overall in our 2026 review at 4.3 of 5 versus 4.2 for Close Brothers. That said, the right answer depends on what you trade and what you need. Close Brothers is the stronger pick for established smes needing asset or invoice finance, while Funding Circle is the stronger pick for established ltd companies. If your business sits inside one of those use cases, ignore the headline rating and pick for fit.
What rates and ticket bands do Close Brothers and Funding Circle offer?
Close Brothers runs a asset finance, invoice finance, commercial loans with tickets of £25k to £25m+ at Bespoke, quoted at offer. Funding Circle runs a term loan with tickets of £10k to £500k at 6.9% to 26.9% APR. Decision time on Close Brothers is 5 to 14 business days; on Funding Circle it is 1 to 3 business days. Headline rates rarely match the offered rate, so verify on the lender site before committing, and assume bespoke pricing above £100k where the data allows it.
Eligibility: Close Brothers vs Funding Circle, who qualifies?
Close Brothers is a hard-search lender (footprint visible to other credit checkers) and accepts sole traders and partnerships as well as Ltd companies. Funding Circle is soft-search at quote and accepts sole traders and partnerships as well as Ltd companies. Close Brothers is FCA regulated; Funding Circle is FCA regulated.
Which is the wrong answer for what?
Close Brothers is the wrong answer for self-serve sub-£25k. Funding Circle is the wrong answer for sub-2-year trading. If either of those describes your business, look at the side-by-side table for the alternative, or get a quote from our UK lender panel and we will surface the right shortlist.
Can BestBusinessLoans help me choose between Close Brothers and Funding Circle?
Yes. Our reviews are editorial; we run a UK lender panel via our /get-quotes/ form that includes both. Tell us monthly turnover, sector and what you need the money for. We match you against the lenders most likely to approve and beat your current cost, then route the application without affecting your credit file at quote stage.
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Get quotes →Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-08. Editorial by Best Business Loans Ltd (16833937).