Funding Circle Review UK 2025
Funding Circle business loans review: 6.9-18% APR (60-70% cheaper than MCAs), £10k-£500k available. Slower (5-7 days) but cheapest option if you have good credit and can wait for business growth.
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
You save:
£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. Perfect for planned expansion, equipment purchases, or growth initiatives that aren't time-critical.
Compare Funding Circle vs Fast MCAs
See both traditional loans AND fast MCAs. Choose what's better for your business growth.
Compare all options • Get best rates • Save thousands
Compare All OptionsFrequently Asked Questions
Is Funding Circle cheaper than MCAs?+
Yes! Funding Circle is 60-70% cheaper than MCAs. On a £50k advance over 2 years, Funding Circle costs £4,580 in interest vs MCA's £12,500+ cost. Savings of £7k-£15k typical.
Why would I choose MCA over Funding Circle?+
Choose MCA if you need money in 24-48 hours, have poor credit, have seasonal sales requiring flexible repayment, or want to avoid a personal guarantee. MCAs are faster but more expensive.
Does Funding Circle require a personal guarantee?+
Yes, Funding Circle requires a personal guarantee. This means you're personally liable if your business defaults. MCAs from iwoca/YouLend often don't require one for amounts under £50k.