About Funding Circle

Established in 2010, Funding Circle lends money to small and medium-sized businesses across the UK. So far, about 43,000 people have lent more than £800 million to British businesses.


Pros...

  • The site allows investors to back British businesses.
  • Investors can select their own firms according to their interest or risk profile.
  • You can access your money early, subject to an admin fee of 0.25%.

Cons...

  • There is no provision fund.
  • Funding Circle is not covered by the FSCS.
  • Funding Circle charges an 1% annual servicing fee.
  • Capital is at risk.

Provision funds and insurance

Funding Circle does not have a provision fund.

How is the risk spread?

Funding circle's experienced credit assessment team review every application and only allow established and creditworthy businesses to borrow through Funding Circle. However, it’s important to remember that some businesses will not be able to fully repay their loan. That is called bad debt.

Key Data

  • Amount Lent/Invested: £1.5b
  • No. UK Investors: 53.2k
  • LTV: 70%
  • Expected Bad Debt Ratio: 1.9%
  • FCA Regulated?
  • Who chooses borrowers? Investor
  • Investment secured on Business Loans
Invest with Funding Circle

Bespoke Terms

  • Potential Return:

       7.3%*
  • Term:

      Bespoke Term
  • Min. investment:

       £100
  • Secured on:

       Business Loans
  • Provision Fund:

       No
  • Early exit:

       Yes

*The current estimated return is a weighted estimate of the annual return after fees and bad debts that investors could earn from lending money to businesses seeking loans today. It is calculated by taking the gross interest rate less fees and estimated bad debts that will occur in the future for each of the last 3000 loans accepted on the marketplace. The average return is weighted by loan amount, compounded and before tax.


Your capital is at risk if you lend to businesses. Peer to peer lending is not protected by the Financial Services Compensation Scheme. Please read our full risk warning here.