Funding Circle
Funding Circle is a UK digital lending and payments platform offering term loans, FlexiPay credit, and a Cashback business credit card to small and medium-sized enterprises, using proprietary AI credit models and distributing originated loans to institutional investors via forward flow agreements and public securitisation.
- Company typePublic
- Founded2010
- HeadquartersLondon, United Kingdom
- Headcount501–1,000
- GTM typeB2B
- OfferingServices
What Funding Circle does
Funding Circle is a UK-focused digital lending and payments platform serving small and medium-sized enterprises, founded in 2010 and listed on the London Stock Exchange (ticker: FCH). Its core products are term business loans (£10,000–£750,000, from 6.9% per year), the FlexiPay revolving line of credit (£1,000–£250,000, with 0% interest and fees from 1.99% per transaction), and a Cashback business credit card (2% cashback for 6 months then 1% uncapped). The platform also distributes government-backed loans under the Growth Guarantee Scheme and routes asset finance through specialist partners. Underwriting is supported by proprietary AI credit models reported to discriminate risk three times better than traditional bureau scores, with automated KYC covering 40% of customers.
The business operates a hybrid origination-and-distribution model: loans are originated via a self-serve digital platform (7-minute online application, decisions in as little as 1 hour), an Introducer API, and a network of channel partners including Santander UK, TaxAssist Group, Tide, Starling Bank, and Atom Bank. Originated credit risk is substantially off-loaded through forward flow agreements with institutional investors (Waterfall Asset Management, Deutsche Bank, TPG Angelo Gordon, Barclays, BNP Paribas) and through the SBOLT public securitisation programme (ten transactions, ~£2.5bn cumulative issuance since 2016). In FY 2025, the company generated £204.3m of revenue (+28% YoY), extended £2,453m of credit (+29%), grew active customers 10% to 52,700, and reported PBT of £20.3m. The company sold its US business in 2024 and is publicly pursuing an "AI native" operating model, with reported productivity gains of nearly 20% in 2025.
Funding Circle firmographics
Firmographics- Name
- Funding Circle
- Legal name
- Funding Circle Ltd
- Website
- https://fundingcircle.com
- Company type
- Public
- Founded year
- 2010
- Operating status
- Operating
- Headcount range
- 501–1,000 employees
- Short description
- Funding Circle is a UK digital lending and payments platform offering term loans, FlexiPay credit, and a Cashback business credit card to small and medium-sized enterprises, using proprietary AI credit models and distributing originated loans to institutional investors via forward flow agreements and public securitisation.
- Ownership category
- akta.pro rank
Funding Circle industry classification
Industry- Product category
- SME Lending
- NAICS
- Sales Financing (52222)
- SIC
- Short-Term Business Credit Institutions (6153), Asset-Backed Securities (6189), Miscellaneous Business Credit Institution (6159)
- akta.pro primary industry
- SME Term Loans & Growth Capital (FSAKAGAB)
- akta.pro secondary industry
- Merchant Cash Advance (MCA) & Revenue-Based Financing (FSAKAGAD)
Keywords
Where Funding Circle is headquartered
LocationHeadquarters
- HQ city
- London
- HQ country
- United Kingdom
- HQ region
- Europe
Offices1 record
Markets served
Funding Circle business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Technology or R&D, Operations, Personnel, Marketing or Sales, Infrastructure
Revenue model
- Loan Interest Income: Funding Circle earns interest income on term loans originated through its platform, with rates ranging from 6.9% per year for business loans. Interest is the primary revenue driver from the core lending business.
- FlexiPay Transaction Fees: FlexiPay generates revenue through flat transaction fees per purchase, ranging from 1.99% per transaction for cash transfers. Users can pay over 1-12 months with zero interest.
- Cashback Credit Card Interchange: The Cashback business credit card earns interchange fees on all transactions. The card offers 2% cashback for 6 months (up to £2,000) then 1% uncapped, funded by interchange revenue from merchants.
- Asset Finance Referral Fees: Funding Circle offers asset finance products through specialist partner network, earning referral or distribution fees for routing customers to partner lenders.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Monthly | Business Loan: £10,000 to £750,000, term loan up to 6 years, from 6.9% per year, one-off completion fee |
| Transaction based/ take rate | Pay-as-you-go | FlexiPay Line of Credit: £1,000 to £250,000, 0% interest, 1.99% transaction fee |
| Transaction based/ take rate | Monthly | Cashback Business Credit Card: From 14.9% per year, 2% cashback for 6 months (up to £2,000), then 1% uncapped |
| Transaction based/ take rate | Monthly | Growth Guarantee Scheme Loan: £25,001 to £250,000, from 13.4% per year |
| Transaction based/ take rate | Monthly | Asset Finance: £10,000 to £5 million, secured loan up to 7 years, rates vary by provider |
Go-to-market motion3 records
Distribution channels7 records
Marketing channels7 records
Funding Circle product offering
Product offeringCore offering
Funding Circle is a UK digital lending platform that originates and distributes SME business loans ranging from £10,000 to £750,000, FlexiPay revolving credit lines up to £250,000, and a Cashback business credit card. Loans are funded through institutional forward flow agreements and the SBOLT securitisation programme. The platform offers online applications with decisions in as little as one hour and funds typically disbursed within 48 hours, supported by AI-based credit scoring and automated KYC onboarding.
Product overview
Funding Circle is a UK SME finance platform offering a multi-product portfolio centred around business lending and payment solutions. The core products include Business Loans (£10,000-£750,000, term loans up to 6 years) and FlexiPay (flexible line of credit with instalment payment options). Payment products consist of the Cashback Business Credit Card (2% cashback for 6 months, then 1% uncapped) and FlexiPay Business Credit Card (instalment payments over 1-12 months). The platform also facilitates government-backed lending through the Growth Guarantee Scheme, CBILS, Bounce Back Loans, and Recovery Loan Scheme. Asset Finance is offered through specialist partner network. Products are available via online application with decisions in as little as 1 hour, and funds typically disbursed within 48 hours.
Differentiator
Problem solved
Functional benefit
Products and services
- Business Loan Fast, affordable term loans for UK SMEs ranging from £10,000 to £750,000, terms up to 6 years, interest from 6.9% per year, with one-off completion fee. Apply online in 7 minutes with decisions in as little as 1 hour. For UK limited companies and LLPs.
- FlexiPay Line of Credit Revolving line of credit for UK SMEs from £1,000 to £250,000 allowing businesses to pay in 1, 3, 6, 9 or 12 months. 0% interest with transaction fee from 1.99% for 1-month term. FlexiPay assets under management stood at £206m as of December 2025 with transaction volumes of £815m.
- Cashback Business Credit Card Business credit card offering 2% cashback for the first 6 months (capped at £2,000) then 1% uncapped thereafter. Rates from 14.9% per year, representative 34.9% APR variable. No monthly or annual fee. Credit limits up to £250,000. Accepted anywhere Visa is taken, with optional Apple Pay and Google Pay support.
- Growth Guarantee Scheme Loan Government-backed loans for growth, working capital and more, ranging from £25,001 to £250,000 with rates from 13.4% per year, term up to 6 years, one-off completion fee. Available via Funding Circle's online application.
- Asset Finance Secured loans from £10,000 to £5 million with terms up to 7 years to fund vehicles, equipment or machinery, offered through Funding Circle's specialist partner network. Rates vary by provider.
- Introducer API API product enabling introducers, brokers, and partners to offer Funding Circle loans and FlexiPay applications directly from their own websites, platforms or mobile apps, with commission tracking and webhook callbacks. SDK available in JavaScript.
- SBOLT Securitisation Programme Public ABS programme that packages originated UK SME loans into tradable securities purchased by institutional investors, enabling Funding Circle to scale lending without holding the loans on its own balance sheet.
Quantifiable outcome
- Every £1 million advanced through the platform adds £2.7 million to UK GDP and supports 39 jobs
- +2 more outcomes
Companies that use Funding Circle
Customer profileNamed customers10 records
Segments3 records
Ideal customer profiles2 records
Funding Circle technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Integration4 records
AI capability4 records
Feature4 records
Funding Circle partnerships and signals
Strategic signalPartnerships
Eight partnerships are on record, tiered core, minor and flagship.
- Premiership RugbycoreOfficial sponsor of Premiership Rugby with partnership featuring former England rugby player Ben Youngs. Aligns Funding Circle brand with teamwork values and supports small business community engagement.
- TNT SportscoreNew partnership announced January 2026, positioning Funding Circle as a supporter of small business success alongside TNT Sports' sports broadcasting reach.
- Starling BankminorPartnership to provide £300 million in CBILS loans to small businesses, allowing Starling Bank customers to access Funding Circle business loans through the Coronavirus Business Interruption Loan Scheme.
- TideminorPartnership allowing Tide customers to apply for Funding Circle business loans directly from their Tide account, integrating lending into the business banking experience.
- Santander UKflagshipFirst partnership between a UK bank and online finance provider. Santander proactively refers small business customers looking for a loan to Funding Circle on its website and through customer letters. Funding Circle signposts borrowers to Santander for day-to-day banking needs.
- TaxAssist GroupcoreKey strategic partnership where TaxAssist Group refers small business clients to Funding Circle for financing. TaxAssist accountants provide modern approach to finance with simple online application.
- Modulr FS LimitedcoreElectronic money institution providing FlexiPay account and payment services. Modulr is authorised and regulated by the FCA as an Electronic Money Institution for issuance of electronic money and payment services.
- Monavate LtdcoreIssues the FlexiPay Business Credit Card pursuant to Visa licence. Monavate is authorised in the UK by the FCA to issue electronic money and provide payment services.
Scale indicators20 records
Recent moves6 records
Expansion highlights6 records
Funding Circle competitors and assessment
Company assessmentDirect peers
- OakNorth Bank: UK challenger bank focused on lending to SMEs and property developers, offering comparable term loan products and serving a similar underserved UK small business customer base.
- MarketFinance: UK SME finance platform providing invoice finance and business loans, directly overlapping with Funding Circle's working capital and small business lending offerings.
- iwoca: UK-based online lender providing small business loans and credit lines, directly competing with Funding Circle's core SME term loan and FlexiPay-style revolving credit products.
- Allica Bank: UK challenger bank purpose-built for SMEs and small commercial lending, with a similar customer segment and relationship-led digital lending model.
- Capify: UK and US SME working capital provider offering merchant cash advance and small business loans, directly comparable to Funding Circle's FlexiPay and short-term credit products.
- Zopa: UK digital lending platform that, like Funding Circle, originated as a peer-to-peer lender and has since evolved into a broader consumer and SME credit provider.
Emerging players
- Atom Bank: UK challenger bank with growing SME lending franchise and an active partnership with Funding Circle, competing in the same UK small business credit market from a deposit-funded position.
Broad incumbents
- Lloyds Banking Group: Largest UK SME lender with a full-service business banking franchise; represents the incumbent competitor whose underserved customers Funding Circle's platform explicitly targets.
- Starling Bank: UK digital bank with a fast-growing SME lending business, comparable in customer segment to Funding Circle and currently a referral partner via the Starling/CBILS arrangement.
- Tide: UK SME-focused digital business banking platform that both distributes Funding Circle loans and is building its own embedded lending capabilities, making it a partner and competitor in SME credit.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
Funding Circle social profiles
Digital presenceFunding Circle compliance and trust
Trust signalCompliance3 records
Funding Circle financial estimates
Financial estimateRevenue estimate
Valuation estimate
Funding Circle leadership team
Management profileNumber of profiles
Profiles17 records
Funding Circle funding detail
Funding detailFunding overview
Funding rounds15 records
Investors19 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Funding Circle M&A and investment
M&A and investmentM&A3 records
Investments5 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Funding Circle
What does Funding Circle do?
Funding Circle is a UK digital lending platform that originates and distributes SME business loans ranging from £10,000 to £750,000, FlexiPay revolving credit lines up to £250,000, and a Cashback business credit card. Loans are funded through institutional forward flow agreements and the SBOLT securitisation programme. The platform offers online applications with decisions in as little as one hour and funds typically disbursed within 48 hours, supported by AI-based credit scoring and automated KYC onboarding.
Is Funding Circle a public or private company?
Funding Circle is a public company. It is classified as public and is currently operating.
When was Funding Circle founded?
Funding Circle was founded in 2010. It employs 501 to 1,000 people.
Where is Funding Circle based?
Funding Circle is headquartered in London, United Kingdom, in the Europe region.
How does Funding Circle make money?
Four revenue lines are on record. Loan Interest Income is the primary driver. The others are flexiPay Transaction Fees, cashback Credit Card Interchange and asset Finance Referral Fees.
Who are Funding Circle's main competitors?
Direct peers on record are OakNorth Bank, MarketFinance, iwoca, Allica Bank, Capify and Zopa. Atom Bank is listed as an emerging player. Broad incumbents are Lloyds Banking Group, Starling Bank and Tide.
Does Funding Circle have an API?
Yes. The Funding Circle Introducer API (v1) allows introducers and brokers to offer Funding Circle loans from within their own website, platform or mobile app. The API supports creating term loan applications, creating FlexiPay applications, checking loan application status, retrieving loan application decisions, uploading documents, and submitting required actions. It uses OAuth 2.0 Client Credentials Grant flow for authentication with a 24-hour access token validity. Developer documentation is at www.fundingcircle.com/uk/partners/developer/api-doc.
What industry is Funding Circle in?
Funding Circle's product category is SME Lending. Its primary akta.pro industry code is FSAKAGAB, SME Term Loans & Growth Capital, with a secondary code of FSAKAGAD, Merchant Cash Advance (MCA) & Revenue-Based Financing. Its NAICS code is 52222 and its SIC code is 6153.