Loans For Business

Loans for business are quicker, easier, and cheaper through Funding Circle

Funding Circle makes getting loans for business quick and easy. Businesses can borrow £5,000 - £250,000 directly from real people through our online marketplace. We provide loans for business which save you money through our online auctions.

The top 5 banks in the UK account for 92% of small business bank lending meaning there are few other alternatives available. This means that due to the lack of competition, bank loans for business tend to lack flexibility. As these banks dictate the market they are often able to impose legally binding covenants before agreeing to a loan.

The two main options available from banks are term loans and overdrafts. A term loan is an amount borrowed that is paid back with interest over a fixed period of time and can come in many different forms. The benefit of these periodic loans for business is that if you can fix your interest rate you know exactly how much your monthly repayments will be and can budget accordingly. However, there tends to be stringent conditions involved with these types of bank loans for business. Your company may be tied into long term finance plan as if you want to repay a loan early your business will typically be charged a pre-payment fee.

An overdraft is a loan arrangement under which a bank extends credit up to a maximum amount against which a current account customer can write checks and make withdrawals. This may be a flexible way of financing changing cashflow requirements. However, an overdraft can be costly, as each time it needs to be renegotiated you will incur repeat fees. You will also have to pay a fee if you exceed your pre-arranged overdraft limit; this can happen even when you have made deposits but they have not yet cleared the system.

Funding Circle supplies unsecured loans for a 1, 3, or 5 year period, but your business can pay it back early at no extra cost. Lenders bid an amount and an interest rate on an online auction and only the lowest rates are accepted so you get the best rate possible.

Loans for business made easy

"As a small business we have been frustrated in the last 18 months by the lack of lending from banks and other funding bodies. After hearing about Funding Circle I completed the application in less than an hour which was very straightforward.

The underwriters came back within 24 hours that we were deemed to be a low risk client and qualified for the marketplace. Once fully funded it is very interesting to see how lenders bid for cheaper loans and the overall loan finally ended up with an excellent interest rate.

I am very delighted with the help that I have received from Funding Circle and I believe that this is a product that is going to be of great benefit to small businesses, allowing then to access funding at competitive rates, and a wonderful opportunity for lenders to make much more money than from leaving their funds in banks and building societies. I can highly recommend them!" Marketing Company, Gloucestershire

Related info: Business loans | Unsecured business loans | Secured business loans | Business grants | Best business loans