Funding Circle review
Funding Circle is the most established name in UK small-business lending, and its term loan is the one to beat for a fixed, one-off cost. It lends £10,000 to £750,000 with rates advertised from 6.9% a year, repaid in fixed monthly instalments, and it can decide quickly without filed accounts for smaller sums. The catch is the headline: 6.9% is a floor for the strongest applicants, not a representative APR, so budget for more. Its FlexiPay line covers shorter, revolving needs at a flat fee from 1.99% a draw.
| Product | Unsecured or secured business term loan, plus the FlexiPay credit line |
| Borrow | £10,000 to £750,000 on a term loan; £1,000 to £250,000 on FlexiPay |
| Rate | From 6.9% a year (a floor, not a representative APR) |
| Repaid | Fixed monthly instalments over the term; FlexiPay is a flat fee from 1.99% a draw |
| Eligibility | UK businesses; FlexiPay is for incorporated companies and LLPs |
What Funding Circle does well
The term loan is the core product and the reason to look here: a fixed lump sum from £10,000 to £750,000, repaid in equal monthly instalments, which is the clean shape for a known cost like equipment, a fit-out or an acquisition. Funding Circle has lent to UK small businesses since 2010 and settles many applications in a day or two, without asking for filed accounts on smaller amounts.
FlexiPay sits alongside it for shorter needs. It is a revolving line of £1,000 to £250,000 that charges a flat fee from 1.99% each time you draw, rather than interest, and is fee-free if you clear a draw in one instalment. That makes it closer to a business card than a loan, and it is limited to incorporated businesses.
What to watch
The 6.9% in the adverts is a floor rate offered to the strongest applicants, not the rate most borrowers get, so treat it as the best case and put your actual quote through the calculator before you commit. The rate you are offered depends on your trading history, turnover and credit profile.
As with almost all small-business lending, expect to sign a personal guarantee, which puts your own assets behind the debt even though the loan is to the business. Lending to a limited company is also not regulated by the FCA in the way a consumer loan is, so the usual consumer protections do not automatically apply. Read the agreement, not just the headline rate.
The ledger, balanced
In credit
- Established lender, loans up to £750,000
- Clean fixed-instalment term loan for a one-off cost
- Fast decisions, no filed accounts needed on smaller sums
- FlexiPay line for shorter, revolving needs
In debit
- 6.9% is a floor rate, not what most borrowers pay
- Personal guarantee usually required
- Business lending is not FCA consumer-regulated
- FlexiPay is limited to incorporated businesses
Check your rate at Funding Circle
Questions people actually ask
What interest rate does Funding Circle charge?
Funding Circle advertises business loan rates from 6.9% a year, but that is a floor for the strongest applicants, not a representative APR. The rate you are offered depends on your turnover, trading history and credit profile, so budget above the headline and check your actual quote before you borrow.
Is Funding Circle a good way to get a business loan?
For a fixed, one-off cost it is one of the strongest options, because the term loan is a simple lump sum repaid in equal monthly instalments and Funding Circle can lend up to £750,000. It is less suited to uneven, short-term cash flow, where a revolving line like iwoca's Flexi-Loan fits better.
Is Funding Circle safe and legitimate?
Funding Circle is an established UK lender that has funded small businesses since 2010 and is a listed company. Business loans are not covered by the FSCS or consumer credit protections, so read the loan agreement and the personal guarantee carefully before signing.
Rates and limits verified 5 July 2026 against fundingcircle.com. Business lending is not covered by the FSCS, and lending to a limited company is not regulated like a consumer loan, so confirm the terms with the lender before you apply. We may earn a commission through links on this page.