Funding Circle Review UK 2025
Funding Circle business loans review: 6.9-18% APR (60-70% cheaper than MCAs), £10k-£500k available. Slow (5-7 days) but cheapest option if you have good credit.
4.2/5(2,100+ reviews)
Funding Circle is the cheapest business funding option if you have decent credit. 6.9-18% APR vs MCAs' 25-35% effective rate. Saves £7k-£15k on typical £50k advance. Trade-off: Slower (5-7 days vs 24-48hrs) and requires personal guarantee.
Funding Circle Rates 2025
- APR Range: 6.9% - 18% (depends on credit score)
- Amount: £10,000 - £500,000
- Term: 6 months - 5 years
- Approval: 3-5 days average
- Funding: 5-7 days total
- Personal Guarantee: Required
Cost Comparison: £50k Over 2 Years
Funding Circle (8.9% APR):
Total: £54,580 | Interest: £4,580 | Monthly: £2,274
iwoca MCA (1.25x over 8 months):
Total: £62,500 | Cost: £12,500 | Daily: varies
Savings with Funding Circle: £7,920 (63% cheaper)
Pros & Cons
Pros
- 60-70% cheaper than MCAs
- Fixed monthly payments (predictable)
- Builds business credit
- FCA regulated
Cons
- Slow (5-7 days vs MCA's 24-48hrs)
- Personal guarantee required
- Credit checks (harder approval than MCA)
- Fixed payments (less flexible)
When to Choose Funding Circle
- You have decent credit (650+ score)
- Can wait 5-7 days (not emergency)
- Want lowest total cost
- Comfortable with personal guarantee
- Prefer fixed monthly budget
When to Choose MCA Instead
- Need money in 24-48 hours
- Poor credit (MCA doesn't care)
- Seasonal sales (need flexible repayment)
- Want to avoid personal guarantee
Final Verdict
Funding Circle is the cheapest option if you qualify. Saves £7k-£15k vs MCAs on typical £50k. BUT requires good credit, personal guarantee, and 1-2 week wait.
For most businesses with decent credit: Wait the extra week and save 60-70% vs getting MCA immediately.