Watch our 'How it works' video
to get a quick overview of Funding Circle.
Once you're done, you can download our investor guide for more information to get you started or, you can read a summary below.
Every business loan is funded through an auction
1. You choose from a variety of great British businesses to lend to.
2. Place your bid by deciding how much you want to lend and at what interest rate.
3. The business makes equal monthly repayments back to you including the interest.
Latest average bid rates
Earn a great rate
You choose the rate you're happy to lend your money at but keep in mind the lowest rates offered in the auction are accepted into the loan. You get a good return on your money, and businesses get a fair cost of finance. Everyone wins.
Every business borrowing through Funding Circle is given a risk band from A+ to C- by our experienced credit assessment team. This helps you to set your bid rates accordingly.
On average, investors are currently earning a net return of 6.1% after fees & bad debt.
Our fees are simple and easy to understand without any hidden cost:
1% annual fee on the amount of money you have lent, collected when you receive a payment.
0.25% fee on the amount outstanding if you sell your loan parts to other investors.
The British government has thrown its weight behind non-bank lending in an attempt to improve a stagnant market.
Meet people already lending to businesses on Funding Circle
I can take control of my return on investment and risk involved
Lending to businesses: what's the risk?
Every business has been assessed by our experienced credit team. We only allow strong, creditworthy businesses to borrow through Funding Circle. Our businesses have typically been trading for around 10 years. However, it's important to remember that some businesses will not be able to fully repay their loan.
The bad debt rate is currently 1.4%
Based on the total £235 million of lending to businesses since we launched in 2010.
See more detail on our stats page
Managing risk: Diversification
Diversification simply means spreading your lending across lots of different businesses, so you lend a small amount to each one. This becomes important when a business is not able to fully repay its loan as the impact on your overall return will be less.
As an investor you can choose the level of diversification that suits you. Many investors spread their risk across lots of businesses, whereas others prefer to lend to a handful of businesses that have been carefully selected.
The 100 Club:
Strong return through diversification
Every investor in the 100 club is lending their money following these two guidelines, leading to a well-diversified approach:
- Lending to at least 100 different businesses
- A maximum of 1% of their total amount is lent to any one business
100% of investors who have followed this approach and maintained this level of diversification for 12 months or more are earning a positive return.
Frequently asked questions
- What's the minimum I can lend?
- The minimum bid amount is £20. You can credit your account by debit card or you can make a bank transfer. The average Funding Circle investor lends £6,000.
- What returns can I expect?
- The current average net return is 6.1% after fees and bad debt.
- How long do I have to invest for?
There’s no minimum investment period. You can withdraw your money at any point by selling your loan parts on to other investors. Loan parts typically sell within 24 hours.
Find out more
Read all our frequently asked questions
- How quickly can I access my money?
- You can withdraw available funds at any time. To access your money, you'll need to sell your loan parts to other people. 90% of loan parts are sold within 24 hours.
- Is my money secure?
- All loan contracts are directly between you and the businesses you've lent to. If Funding Circle ceased to exist, these would be unaffected and our backup servicer, Link Financial Outsourcing Ltd, would service the loans on your behalf. Any funds that you have in your account but have not lent out are also covered as these are held on trust in a secure client account at Barclays Bank plc. Learn more
Meet the businesses borrowing from people like you
This isn't just one person saying they believe in me, this is a whole group of people that think this is a good idea.
Start lending today
Signing up to lend on Funding Circle takes only a few minutes. Enter your email address and choose a password below to get started.