Funding Circle Review

  • Funding Circle Review
  • Loan Types: P2P Business Lending
  • Availability: UK and USA (Min. 2 Year History)
  • Securities: Both Unsecured & Secured
  • Loan amount: £5000 – £1,000,000 / $25,000- $500,000
  • Interest: As low as 6% APR
  • Overall Rating: Top Lender 4.7 / 5.0

About FundingCircle

Funding Circle is a trusted provider of small business loans in the UK and US. Using a Peer to Peer (P2P) lending model, Funding Circle makes secured and unsecured loans available to business owners. With over $800 million lent to small businesses globally, and with 35,000 investors in their fold, Funding Circle is among the fastest, easiest, and most reliable P2P business loan providers.

Peer To Peer Lending

Borrow or lend money with a smooth online platform. Check your account online with ease.

Quick Approval

Time for loan approval: UK – <3 Business Days; US – <14 Days. Helpful support by telephone and email.

Trusted Lender

“Overtaking traditional banking” – Bloomberg. 90%+ Of user reviews are positive.

The Good and the Bad


  • Low Barrier for Entry. Funding Circle provides loans to a wide array of businesses, for many proposed uses. Rates and terms are transparent.
  • Fast and Efficient Approval. Terms and Approval are issued within two weeks, sometimes much sooner.
  • Transparency. There are no hidden fees with Lending Tree. In addition, your business will be assigned an individual loan specialist to answer your questions and smooth the loan process throughout.
  • Quick Approval
  • Average Rating 9.5 in TrustPilot, Backed By UK Gov’t


  • People occasionally complain of longer than expected approval times and higher than desired rates. These, however, are usually in keeping with Funding Circles publicly available terms.

Which Type of Companies do They Apply to?

One of the great advantages of Funding Circle is the wide net they cast for prospective small businesses. In the UK, a business owner can apply for a loan of as little as £5,000, to be used for nearly any legitimate business purpose. US borrowers have the slightly higher minimum of $25,000 for new loans (and potentially higher interest rates), but there is still very little regulation upon what sort of businesses may apply. Any “established” business that can expand, renovate, hire, or engage a new campaign can reasonably expect to acquire financing through Funding Circle. In the UK, this benchmark refers to LLCs and LLPs, with at least a 2 Year History and a minimum turnover of £50,000.

To apply in the US, businesses much be able to produce 6 months of bank statements for loans over $200k, and 3 years of tax filings for loans less than $200k, as well as other documents.

Are Bad Credit Businesses Accepted?

Potential borrowers are divided into one of 5 “Risk Bands” (A+, A, B, C, C-), according to business credit history and other factors. Not every business will be approved, but most are. Of course, those with the most positive credit histories will enjoy the best interest rates. C- Risk Band members will be issued rates little better than those available from banks and other financing sources.

Early Repayments & Comparison

There are no fees or penalties for early repayment. Because P2P loans are made from individual to individual, lenders often welcome early repayment, as it negates the risk they take on by holding an outstanding loan to another party.

How do they compare with other companies in the industry:

 Funding Circle advertises themselves as a transparent, convenient, and honest P2P lender. The record tends to agree, with customers lauding the company’s efficiency and general excellence.

Reputation & Feedback

Looking for reviews of Funding Circle online, you’ll quickly see that they enjoy high ratings everywhere. At the time of this writing TrustPilot gives them a composite score of 9.5, based on nearly 500 reviews. ReviewCentre gives them a 4.5 out of 5, with 84 reviews listed. Even Funding Circle employees have good things to say about the company.

Funding Circle is accredited and regulated through the Financial Conduct Authority (FCA). As yet, no specific P2P lending regulation has been drafted in the US, which fits pre-internet law to P2P issues. The UK government presently backs loans up to 10%, should a borrower default. As Funding Circle expands into the US market, news and reviews are good. FC has an A+ rating with the BBB, and their forum ratings, though fewer in number than in the UK, are similarly positive.

This recent article from Shared Service Link details how Funding Circle continually expands the offerings made available to borrowers in the UK. BizJournals covers the company’s expansion into the US, where swift growth will bring Funding Circle’s global loan provision total to more than $1 Billion. Bloomberg highlights how P2P, carried forward by Funding Tree and similar organizations, is overtaking traditional bank loans as the go-to model for small business financing.

For investors:

Funding Circle is recommended for lenders as well. Lending statistics are always published and up-to-date. At the time of this writing, Funding Circle investors demonstrate an all-time annual return rate of 6.3%, after fees and bad debt. Bad debt rates peak at 5% for C- risk band borrowers, with a rate of only 2% when all five risk bands are considered.

So trusted that the UK government itself uses the platform to lend money to small businesses. Lowest APR for low-risk businesses, starting from 6%. Low barriers and advanced risk segmentation make it a superb company for borrowers and investors.

Bottom Line

Funding Circle is a remarkably good borrowing option for a small business with good credit history. Borrowers will enjoy the speed and simplicity Funding Tree brings to the loan process. For lenders, Funding Circle’s business model provides a reliable annual return, with little risk. Many lenders have issued loans to hundreds of small businesses.

So trusted has Funding Circle become in Britain, that the government has successfully used the company to issue loans. As the market continues to grow in the US and UK, one can well imagine terms becoming better for lenders and borrowers alike. With fast and reliable service for all involved, Funding Circle earns an unreserved recommendation and a very high rating, even among other P2P lenders.