Earn a projected return of 7.5% per year1
Join thousands of investors earning for their future by lending to businesses through Funding Circle.
Your actual return may be higher or lower and your capital is at risk.
- Proven track record over 7 years
- Choose different lending options
- Lend easily with automatic tools
- No fees to access your money
- Support 100s of British businesses
Lent to UK businesses since 2010
A proven track record of stable returns3
Projected annual return of overall loanbook. Correct as of 30th September 2017 3
- The projected return is an estimate of what investors could earn on the Balanced lending option, after fees and bad debts, but before tax. It uses the loans we expect to be funded on the platform, and the estimated bad debt rate of those loans based on our all-time loan data. See the full calculation here.
- Interest earned is after fees and bad debt, but before tax.
This chart shows the projected performance of all Funding Circle loans by the year the loans were taken out. These projections are updated regularly and may change over time. They are after fees and bad debt, but before tax.
Please note, past performance is not a guarantee of future performance.
Funding Circle has been the most lucrative [peer-to-peer platform]. Since I joined in August 2012, drip feeding cash in, my returns, after all fees and bad debt adjustment, have been 6.2pc.Martin Lewis, writing in The Daily Telegraph, 2013
How lending works
At Funding Circle you lend directly to established small British businesses. They get the funds they need to grow, and you can earn attractive returns as they pay you back each month.
We have two types of account, a Classic account and an ISA account. They work in exactly the same way, except that the ISA account allows you to earn interest tax-free. To help you build a well diversified portfolio for a more stable return, we recommend lending £2,000 or more. If you’d like to start with less, the minimum initial transfer is £1,000.
Classic accountAvailable to all investors, you can lend as much as you like to businesses and earn attractive, stable returns.
- Available to all investors
- No annual limit
- Earnings subject to tax
ISA accountLend to businesses and earn interest tax-free. Currently our ISA is open exclusively to existing investors.
- Currently exclusive to existing investors
- Annual subscription limit
- Earn interest tax-free
Choose your lending option
To help you get the return you’re looking for, you can choose between two lending options. They are available for both our Classic and ISA accounts, and you can switch options at any time by logging in online.
- You lend to the full range of creditworthy businesses to build a balanced portfolio
- This option has a higher projected return, with a higher estimated bad debt rate
- You only lend to creditworthy businesses that have been assessed as lower risk
- This option has a lower projected return, with a lower estimated bad debt rate
- The rates shown are the projected returns, after fees and bad debts, but before tax, that a diversified investor could earn with each lending option. These rates may change over time, and your actual return may be higher or lower. By lending to businesses your capital is at risk.
Simple to use at every step
With an easy-to-use online account, automatic tools and fantastic investor support, earning attractive and stable returns is quick and simple.
Open your online account
Set up your account in minutes and transfer money from your debit card.
Start lending automatically
Our automatic lending tool allows you to lend small amounts to hundreds of different businesses.
Receive monthly repayments
You’ll typically receive repayments with interest each month from the businesses you’ve lent to.
Repayments are reinvested
By keeping our lending tool switched on, your repayments will then be lent out again to help maximise your earnings.
Here to help if you need us
Call or email our experienced team and they can help answer any questions you have.
Need help? Call us.
Tax and fees
Projected return is after our fee
Our 1% annual servicing fee is already included in your projected return.
Projected return is before tax
Tax is not deducted from your earnings, but you’ll get a tax statement you can download if you need it for your tax return.
Accessing your funds
Your funds will be lent to businesses who borrow over 6 months to 5 years, but you have options to access your money at any stage. When you’re ready you have two options:
Withdraw as you go
Turn off reinvesting and withdraw your repayments as they come in.
Withdraw a lump sum
Select the amount you’d like to withdraw, and sell your active loans to other investors using our automatic selling tool.
There are no fees for selling loans. While usually very fast, selling loans is not instant and depends on demand from other investors looking to buy at that time. You can only sell active loans with no credit issues, and not in the last month of their term.
Funding Circle, the largest peer-to-peer company in the UK, has received authorisation from the Financial Conduct AuthorityThe Financial Times, May 2017
How we manage risk
Only established businesses who have passed our rigorous credit assessment process can borrow through Funding Circle.
However, it’s important to remember that some businesses will not be able to fully repay their loan. We call this a bad debt, and it’s already accounted for in your projected return.
We reduce the impact of bad debt in 3 key ways:
Rigorous assessment with advanced technology
Our vastly experienced credit assessment team combine decades of experience from some of the world’s leading financial institutions. They use thousands of data points, innovative technology and their detailed understanding of business lending to assess every application, so only creditworthy businesses are approved.
Diversification and minimum investment
Diversification, where you spread your lending across many businesses, is the best way to earn a stable return. To help you build a well diversified portfolio, we recommend lending £2,000 or more, as this allows you to:
- Lend to 100+ businesses
- Lend no more than 1% of your total to each one
Every investor who has followed these two steps has earned a positive return. 91% have earned 5% or more. If you’d like to start with less, the minimum initial transfer is £1,000. Correct as of 1st October 2017.
We collect debts for you
When a business is unable to fully repay their loan, we handle everything for you. Our collections and recoveries team work to recover as much as possible for you, and have won awards in their field for the outstanding recoveries they make for investors.
Open your account and start lending to hundreds of businesses today.
What could happen to returns in an economic downturn?
To help ensure you can earn stable returns, we perform stress tests to simulate what could happen during an economic downturn. If the bad debt rate were to double, for example in a downturn similar to 2008, we estimate returns would remain resilient.
The bad debt rate would need to be at least four times worse than expected before it begins to affect the initial amount lent by investors.
The below figures are for our overall loanbook, and will be different for Balanced & Conservative lending options.
Interest earned can cover a significant increase in bad debt
It’s important to note that the returns shown are for our overall loanbook originated in 2017, and your individual return may be higher or lower. The returns shown are an average across the lifetime of the loans, so may vary from year to year.
Help British businesses thrive
You’ll lend to hundreds of established, creditworthy businesses in different sectors and regions throughout the UK. Whether they need new premises, a better website or an extra pair of hands, your lending will help them grow, create jobs and drive the economy forward.
- 8 years old (no start-ups)
- Employs 5–10 people
- Turnover of £420,000