Funding Circle

Funding Circle is a British financial technology company that operates an online lending platform for small and medium-sized enterprises (SMEs). Founded in August 2010 as a peer-to-peer marketplace connecting small UK businesses with individual investors, it transitioned fully to institutional lending in 2022. The company is headquartered on Queen Victoria Street in London and is regulated by the UK Financial Conduct Authority under firm registration number 722513; it is not covered by the Financial Services Compensation Scheme.

Its product range covers secured business term loans of £10,000 to £750,000 from 6.9% per year over terms up to six years, government-backed loans of £25,001 to £250,000 under the Growth Guarantee Scheme, shorter-term loans of up to 12 months, FlexiPay — a revolving line of credit of £1,000 to £250,000 repayable over 1, 3, 6, 9 or 12 months, launched in 2021 — a Cashback business credit card launched in September 2024 offering 2% cashback for six months (capped at £2,000) and 1% thereafter with credit up to £250,000, and asset, agricultural, equipment and vehicle finance arranged through specialist partners for amounts up to £5 million. FlexiPay and the Cashback card can be added to Apple Pay and Google Pay.

Borrowers apply online in about seven minutes, can obtain an eligibility check in 30 seconds and a quote without affecting their credit score if they are a limited company or LLP, receive decisions in as little as one hour, and typically receive funds within 48 hours. The company reports revenue of £222.5 million, operating income of £20.3 million and net income of £46.0 million for 2025, and £3.3 billion in assets under management.

Founding story

Samir Desai, James Meekings and Andrew Mullinger, friends from the University of Oxford, first discussed the idea of a peer-to-peer business lending marketplace in a London pub in 2008–2009, during a period in which UK banks were curtailing lending to small businesses after the financial crisis. The three quit their jobs in 2009 to build the company, putting £60,000 of their combined savings into the venture and raising £700,000 from around a dozen investors, including friends and friends of friends, to build the technology platform and market the launch. Funding Circle launched in August 2010, initially connecting UK small businesses seeking loans of £5,000 to £100,000 with individual investors. Before Funding Circle, Desai had worked in private equity and management consulting, Meekings at OC&C Strategy Consultants, and Mullinger in risk consultancy at Ernst & Young and as an analyst at Citi.

Business model

Funding Circle operates an online platform that originates and services loans and other credit products for UK SMEs, funded by institutional investors rather than retail peer-to-peer lenders since 2022. It assesses applications with proprietary credit models, funds approved loans and continues to service them, and reports £3.3 billion in assets under management. Institutional funding partnerships — such as those with Bayview Asset Management, Barclays Bank and TPG Angelo Gordon — supply capital deployed through the platform.

Revenue derives from lending and credit products: term loans carry interest from 6.9% per year plus a one-off completion fee, Growth Guarantee Scheme loans from 13.4% per year, the Cashback credit card from 14.9% per year with no monthly fee, and FlexiPay charges transaction fees from 1.5% for a one-month term at 0% interest. Reported revenue was £222.5 million in 2025, with operating income of £20.3 million and net income of £46.0 million.

Traction

The company reports £18 billion in credit extended and more than 135,000 small businesses financed, with £3.3 billion in assets under management and a customer transaction every 44 seconds. Wikipedia cites more than £17 billion in loans extended as of 31 December 2025 and Grokipedia more than £17 billion to over 125,000 businesses. Milestones include £2 million lent in 2010, £600 million cumulative lending by 2015, over £14 billion and 130,000 businesses by 2022, FlexiPay transactions of £234 million in 2023 and £492 million in 2024 (about £40 million monthly). In fiscal 2017 revenue was £94.5 million with loans under management of £2.11 billion and originations of £1.74 billion; in fiscal 2018 revenue reached £141.9 million, loans under management £3.15 billion and originations £2.29 billion. The company reports supporting 117,000+ jobs, £7.9 billion of GDP contribution and £2.2 billion in tax receipts in 2025.

Latest developments

In February 2024 Funding Circle formed a lending partnership with Barclays Bank and TPG Angelo Gordon to deploy up to £300 million to UK small businesses through its platform. It agreed in June 2024 to sell its US business to iBusiness Funding for £33 million in cash including all loan portfolios (a £10 million gain before transaction costs), with completion expected by the end of June 2024. Co-founder Samir Desai stepped down from the board in October 2024. In April 2025 the company extended its partnership with Bayview Asset Management, surpassing £1 billion in total funding. Full year 2025 results reported revenue of £222.5 million and net income of £46.0 million. The company lists 2026 developments including company cards and digital wallets and a place in the Times Top 100 Places to Work.