Funding Circle review: what a UK business loan really costs
Funding Circle is worth a quote if your business has traded for 1 year or more and needs £10,000 to £750,000 on a fixed rate, but the headline “from 6.9% a year” leaves out a completion fee. On Funding Circle's own calculator example, fee plus interest comes to £16,152 on £100,000 over 24 months: about 14.8% a year in loan terms. Every loan also needs a personal guarantee.
Terms read from fundingcircle.com on 1 November 2026. We have not taken a Funding Circle loan; this review is built from its published terms and its own calculator.
Funding Circle at a glance
| Amount | £10,000 to £750,000 |
|---|---|
| Term | 6 months to 6 years |
| Interest rate | From 6.9% a year; all loans are fixed rate |
| APR | Not published |
| Fees | A one-off completion fee when you take out the loan; amount not published. No fees to settle early. |
| Personal guarantee | Required on every loan |
| Who can apply | Trading 1 year or more, based in the UK |
| Speed | Decision in as little as 5 minutes; funds typically within 48 hours of accepting an offer |
| Credit check | Eligibility check does not affect your score (limited companies and LLPs) |
What a Funding Circle loan costs, worked through
Funding Circle publishes no APR or representative example. Its loan calculator does show one scenario, and it is the only published figure that includes the fee:
| Loan | £100,000.00 |
| Completion fee | £6,900.00 |
| Interest | £9,252.00 |
| Total repayable | £116,152.00 |
| Monthly repayment | £4,840.00 |
The page does not say the term, but the arithmetic gives it away: £116,152 ÷ £4,840 = 24.0 months. Check the total: £100,000 + £6,900 + £9,252 = £116,152.
- Interest alone: £9,252 on £100,000 over 24 months is about 8.6% a year.
- Interest plus the fee: £16,152 on the same loan is about 14.8% a year. The 6.9% completion fee adds roughly 6.2% a year on a two-year loan, and more on a shorter one, because the fee is spread over fewer months.
Funding Circle labels the calculator “indicative”, and your rate depends on your credit file and accounts. The lesson holds for any quote: compare the total repayable, not the headline rate.
How it compares on published terms
| Lender | Amount and term | Published price | Catch |
|---|---|---|---|
| Funding Circle | £10,000 to £750,000, 6 months to 6 years | From 6.9% a year, plus a completion fee | Personal guarantee required |
| NatWest Small Business Loan | £1,000 to £100,000, 1 to 7 years | Representative 12.57% APR on £10,000 over 22 months; no set-up fee and no early repayment fee | A personal, director or member's guarantee may be required |
| Start Up Loans | £500 to £25,000, 1 to 5 years | A fixed 7.5% a year | Businesses trading less than 5 years (60 months); a personal loan |
| Capify | £10,000 to £3,000,000, 3 to 24 months | Rates: Not published | Repayments collected daily or weekly rather than monthly; personal guarantee on every product |
Across our partner's panel, unsecured loan rates run 7% to 44% a year (checked 1 September 2026), so Funding Circle's floor is near the cheap end. The floor is the best case; your quote depends on your credit file and accounts. If your own bank will lend, get its quote too: NatWest charges no set-up fee, which on a short loan can outweigh a lower headline rate elsewhere. See bank business loans compared and business loan interest rates.
Who should use Funding Circle, and who should not
Get a quote if you have traded for at least a year, need £10,000 or more for a defined purpose, want the same payment every month and are prepared to sign a guarantee.
Look elsewhere if:
- You have traded for under a year. Start Up Loans at 7.5% is built for you; see government-backed business loans.
- You need less than £10,000. That is below Funding Circle's minimum.
- You will not sign a personal guarantee. Funding Circle requires one on every loan.
- Your need is a gap of a few weeks. An overdraft can cost less than a term loan with a completion fee; see overdraft vs loan.
- Your customers owe you money on invoices. Invoice finance borrows against those instead.
If most of your takings come through a card machine, check what that machine costs you before borrowing to cover cash flow: a free statement review sometimes finds the money without a loan. For a wider view of term lending, start with business loans compared.
Compare Funding Circle with the rest of the market
One enquiry reaches our partner's panel of more than 200 UK lenders. A specialist calls you back, Mon to Fri, 9am to 5:30pm.
Funding enquiries are handled by our specialist commercial finance partner. We may receive a commission; it never changes the rate you are offered. Finance is subject to status.
Questions people ask
Does Funding Circle require a personal guarantee?
Yes. Funding Circle's product page says: "If you're approved for a Funding Circle business loan, a personal guarantee will be required." A guarantee means the director can be pursued personally if the company cannot repay. If that is a deal-breaker, read our guide to funding without a personal guarantee before applying anywhere.
What fees does Funding Circle charge?
Funding Circle charges a one-off completion fee when you take out the loan, and there are no fees to settle early. It does not publish the fee as a percentage. In its own calculator example the completion fee is £6,900 on a £100,000 loan, which is 6.9% of the amount borrowed.
What APR does Funding Circle charge?
APR: Not published on the product page. Interest rates start from 6.9% a year and all loans are fixed rate. On the calculator example, interest plus the completion fee works out at about 14.8% a year on our arithmetic, against about 8.6% for the interest alone. Ask for the total repayable before you accept any offer.
What are the requirements for a Funding Circle loan?
You need to have been trading for 1 year or more and be based in the UK. Funding Circle asks for up to 6 months of bank statements, and fresh accounts if your last filed accounts are more than 2 years old. It says applicants with poor credit may still be approved, but at a higher interest rate.
Does checking my eligibility with Funding Circle affect my credit score?
Not at the first stage. Funding Circle checks eligibility without affecting your credit score for limited companies and LLPs. It uses Experian and TransUnion credit reports when it assesses an application.
How long does a Funding Circle loan take?
Funding Circle advertises a decision in as little as 5 minutes, with funds paid out typically within 48 hours of accepting an offer. Missing bank statements or out-of-date accounts are what usually slow an application down.
Can I repay a Funding Circle loan early?
Yes. Funding Circle states there are no fees to settle early, including overpaying or clearing the balance in one go. The completion fee is charged when you take the loan, so settling early saves interest but not the fee.
Sources
Every figure on this page comes from the lender's or scheme's own published page, read on 1 November 2026. Panel rate ranges come from our partner's lender-panel catalogue, checked 1 September 2026. We do not use comparison sites as sources.