Earn a projected annualised return of 4.5 - 6.5%1

Please note, we are not currently accepting new sign-ups and have paused new lending for existing retail investors.

Capital at risk. Your actual return may be higher or lower and capital is at risk. Not covered by the Financial Services Compensation Scheme.

  • Choose different lending options
  • Lend easily with automatic tools
  • No fees to access your money
  • Support 100s of British businesses
  • Earn tax-free returns with our ISA2

90,000 investors have lent £6.2 billion through Funding Circle, earning £329 million in interest.2

£6.2 billion
Lent to UK businesses since 2010

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 accounts, ISA and Classic. They work in the same way, however the ISA account allows you to earn interest tax-free. Your tax-free entitlement depends on your circumstances and may change.

The Telegraph
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

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.


4.5 - 6.5% 1
Projected annualised return
  • 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


4.3 - 4.7% 1
Projected annualised return
  • 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

Whichever lending option you choose, you’ll automatically lend your funds to relevant businesses. We’ll also collect and reinvest your monthly repayments.

  1. The rates shown are the annualised projected returns, after fees and bad debts but before tax, that a diversified investor could earn with either lending option. Your actual return may be higher or lower than projected, for example due to the performance of the individual loans your funds are matched with, or a change in macroeconomic conditions. By lending to businesses your capital is at risk. Not covered by the Financial Services Compensation Scheme. See the full calculation here.
  2. Interest earned is after fees and bad debt, but before tax.

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.

  1. Open your online account

    Set up your account in minutes and transfer money from your debit card.

  2. Start lending automatically

    Our automatic lending tool allows you to lend small amounts to hundreds of different businesses.

  3. Receive monthly repayments

    You’ll typically receive repayments with interest each month from the businesses you’ve lent to.

  4. 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.

020 7401 9111

Need help? Call us.

Fees and tax

Projected returns are after our fee

Your projected return already covers the 1% annual servicing fee.

Earn tax-free with the ISA account

All interest earned in an ISA account is tax-free4, helping to boost your earnings.

Your tax-free entitlement depends on your circumstances and may change.

Projected return is before tax

With Classic accounts, tax is not deducted from your earnings, but we’ll provide you with a tax statement you can download if you need it for your tax return.

I took a Funding Circle loan to expand my business

Aeneas at The Great Yorkshire Gift Shop borrowed to create new products and grow his business online.

Accessing your funds

Your funds are lent to businesses who borrow over 6 months to 5 years. You can access your money at any stage once the repayments come in, either by withdrawing as you go or as a lump sum.

Financial Times
Funding Circle, the largest peer-to-peer company in the UK, has received authorisation from the Financial Conduct Authority
The 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 suggest lending £2,000 or more, as this allows you to:

  • Lend to at least 200 businesses
  • Lend no more than 0.5% of your total to each one

99.50% of investors who have diversified like this for at least a year are currently earning positive returns. If you'd like to start with less, the minimum initial transfer is £1,000. Correct as of 31st December 2019.

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.

Trust through transparency – so you can see exactly how well we’re performing, we publish all our data on our statistics page.

What could happen to returns in an economic downturn?

We regularly perform stress tests to simulate what could happen to investor returns during difficult periods, for example during an economic downturn.

The below chart shows what could happen to projected returns if the bad debt rate were to double, as estimated in a stressed scenario modelled by the Bank of England. In this scenario we estimate that returns would remain resilient.

Interest earned can cover a significant increase in bad debt

It’s important to note that modelling for future economic events is always an estimate, and as you are lending to your own individual portfolio your returns may be higher or lower. Past performance is not a guarantee of future returns.

The projected returns shown here are based on the expected performance of new loans taken out in June 2019 only. As returns may vary from year to year, the figures shown are an average across the lifetime of the loans.

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.

Average Businesses
  • 9 years old (no start-ups)
  • Employs 6 people
  • Turnover of £800,000

Helen Smith from Glogg borrowed £40,000 to manufacture 200,000 stainless steel cups for Glastonbury Festival.

100,000 jobs
Unlocked in 2018
£6.2 billion
Lent to UK businesses

We’re here to help

Get in touch with our support team for help or more information.

020 7401 9111

Need help? Give us a call.