Earn a projected return of 6 - 7% per year1

Join thousands of investors earning for their future by lending to businesses through Funding Circle.

Open an ISA account Open a Classic account

Your actual return may be higher or lower and your capital is at risk.

  • 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

71,000 investors have lent £2.7 billion through Funding Circle, earning £135 million in interest.3

£2.7 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.2

ISA account

  • Earn interest tax-free2
  • Annual subscription limit
  • Minimum initial investment of £1,000

Classic account

  • Earnings subject to tax
  • No annual limit
  • Minimum initial investment of £1,000
Open your Classic account
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.


Balanced

6 - 7% 1
Projected 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

Conservative

5 - 5.5% 1
Projected 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 annual 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. See the full calculation here.
  2. The tax-free entitlement of an ISA depends on the individual circumstances of each investor, and may be subject to change in the future.
  3. 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.

Open your ISA account Open your Classic account

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

Our 1% annual servicing fee is already included in your projected return.

Earn tax-free with the ISA account

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

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.

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.

The funds have helped us move our business forward

Previously reliant on distributors, Tom at Bobbin Bicycles borrowed to start selling directly to customers via their website.

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.

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 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. 98% have earned 4% or more. If you’d like to start with less, the minimum initial transfer is £1,000. Correct as of 31st December 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.

Open your ISA account Open your Classic account

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?

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.

Average Businesses
  • 8 years old (no start-ups)
  • Employs 5–10 people
  • Turnover of £420,000

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

45,000 jobs
Created and sustained in 2017
£2.7 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.