Apply online in 10 minutes
Decision in as little as 1 hour
Borrow £10,000 to £500,000
Rates from 8.9% per year
What is business funding?
Business funding is additional finance that can help make the day-to-day running of your business easier. It can help with shorter-term needs, like cash flow, as well as funding longer-term plans, like business growth.
Whether you’re hoping to open a new premises, invest in new equipment or launch a new product line, affordable business funding can be the driving force to take your business further.
Business funding can be used to
- Make a one off payment
- Buy new stock or supplies
- Increase your cash flow
- Build branding and marketing
- Support business growth
- Build an online presence
Applying is quick and easy
Check if you qualify in 30 seconds
See if you’re eligible without affecting your credit score
Apply online in 10 minutes
Complete our simple form with your details, and we’ll only ask for supporting documents if we need them
Get approved in as little as 1 hour
If approved, you’ll receive no-obligation offer with your personalised rate
Get your funds in a couple of days
Once you accept your offer we'll deposit the money into your account - typically within 48 hours
Here to help if you need us
Contact our UK-based team if you have any questions
How does business funding work?
Funding Circle provides debt funding through term loans. However, there are other options available through other avenues. The three main types of business funding include:
1) Equity funding:
Equity funding comes from investors. Funds raised in this way do not need to be paid back, but you will be handing over ownership of a portion of your business. The bigger the risk or the bigger the investment, the larger the stake in the company your investor will want. Your investors may have a right to a portion of your profits indefinitely and have a say in key business decisions.
2) Debt funding:
Debt funding refers to borrowing money. Loans, credit cards and overdrafts are all forms of debt funding. You will borrow a set amount of money and pay it back over a period of time, usually with interest and fees. The major advantage to debt funding is that you will retain full control of the business.
3) Grant funding:
Business grants can be issued by private or public organisations. The UK Government, for instance, offers a range of grants aimed at new and existing businesses. Some grants are available nationally, while others are regional. Business grants do not need to be paid back, but they are often difficult to obtain or are aimed at particular niches, and so usually have strict eligibility criteria.
Types of business fundingBusiness funding comes in all shapes and sizes. Which type is best for you depends on the type of business you have, how much you need to borrow, and what you intend to use it for. The options include:
lent to businesses
What is alternative business funding?Alternative business funding refers to any non-traditional finance method. They include:
- Investments (angel investors, venture capital) — Individuals or organisations give you funding in exchange for equity. Usually for early stage companies with high growth aspirations.
- Crowdfunding (equity, donation, or rewards-based) — Your funding is achieved by lots of individuals each giving a small amount. In return they either get a stake in your business, some of your product/services or another reward.
- Online lending platforms — You take out a business loan and pay it back with interest, similar to a bank loan but with a quick, online process.
How is Funding Circle different from a bank?
Funding Circle is not a bank. As the UK’s top business lending platform, we connect creditworthy businesses with individuals and organisations who have money to lend. You get the finance your business needs to succeed, and those who lend to you earn interest as you repay the loan.
Our streamlined application process uses the latest technology to make it as fast and efficient as possible for you. We’re great at what we do because we deal exclusively in small business loans. Since 2010, we’ve helped 100,000 small UK businesses borrow more than £15.2 billion.
As an alternative funding provider, Funding Circle is the UK’s number 1 business lending platform, specialising in small business loans. To see how we can help you, apply for business funding with our 10 minute form today.