YouLend vs Funding Circle: Which is Cheaper?
Funding Circle wins on cost (63% cheaper) but YouLend wins on speed (24-48hrs vs 5-7 days). £50k: FC costs £4,580, YouLend costs £12,500. Worth the wait?
Cost Comparison: £50,000
YouLend (MCA)
- • Amount: £50,000
- • Factor: 1.25x
- • Total: £62,500
- • Cost: £12,500 (25%)
- • Time: 24-48 hours
- • Repayment: Flexible (% of sales)
Funding Circle (Loan)
- • Amount: £50,000
- • APR: 8.9%
- • Total: £54,580
- • Cost: £4,580 (9%)
- • Time: 5-7 days
- • Repayment: Fixed £2,274/month
Savings with Funding Circle: £7,920 (63% cheaper)
When to Choose YouLend Despite Higher Cost
- Emergency: Equipment breaks, need money today/tomorrow
- Time-sensitive opportunity: Supplier discount expiring this week
- Bad credit: Funding Circle requires good credit (650+), YouLend doesn't
- Seasonal business: YouLend's flexible repayment vs FC's fixed payment
- No personal guarantee wanted: YouLend usually doesn't require, FC always does
When to Choose Funding Circle Despite Slower Speed
- Can wait 1 week: Save £7,920 on £50k
- Good credit: Will qualify for 7-10% APR
- Want lowest cost: 63% cheaper is massive saving
- Comfortable with fixed payments: Budget for £2,274/month consistently
- Long-term funding: 2-5 year terms available
The Trade-Off
YouLend: Pay £7,920 extra for 5-day speed advantage
Funding Circle: Wait 5 days extra to save £7,920
Which is "worth it" depends on your situation: Emergency repairs? YouLend. Planned expansion? Funding Circle.
Conclusion
Funding Circle is dramatically cheaper (63%) but requires good credit, personal guarantee, and 5-7 day wait. YouLend is expensive but fast and doesn't require PG.
Best for most: Apply to both. See if Funding Circle approves you. If yes, decide if saving £7,920 is worth 5-day wait. If no, YouLend is your option.