Funding Circle


FundingCircle offers fractional investments in small-business loans (P2P lending). While they remain open to individual (accredited) investors, they’ve raised their minimum investment amount considerably to $250,000 (from $50,000).

  • Website:
  • Investment Types: Startups/Business Financing
  • Security Types: Debt
  • Sectors: CPG, Restaurants, and Retail
  • Minimum Investment: 250000
  • Must be accredited


  • Borrowers are businesses, with loans secured by business assets and a personal guarantee
  • Automated investment options
  • Easy to diversify across many loans
  • Some loans have shorter terms than other P2P lenders (1-5 years)


  • Only open to accredited investors
  • Very high minimum investment
  • Not as transparent about historical loan performance compared with other P2P lenders

Funding Circle logo


FundingCircle was started in the UK in 2010, and later expanded to the US with the acquisition of Endurance Lending (which had begun lending in 2013).

Types of investments Funding Circle offers

The biggest differentiator for FundingCircle compared with other P2P lending platforms like Upstartand Prosperis that they only lend to businesses, and their loans are all secured by the business assets (and there is a personal guarantee by the borrower).

What do you get when investing with Funding Circle?

Investors receive fractional interests in “borrower-dependent payment notes”, entitling them to a pro-rata share of payments received by the borrower.

Funding Circle fee structure

FundingCircle offers fractional investments in small-business loans (P2P lending). While they remain open to indivdiual (accredited) investors, they’ve raised their minimum investment amount consdierably to $250,000 (from $50,000).

Potential returns and cashflow

Unlike most of the other P2P lending platforms, FundingCircle does not appear to publish much about their loans’ historic performance. The loans themselves carry coupon rates between 4.99% and 27.79%, though the specific return for any investor will depend on the specific mix of notes.

Regulatory framework and due diligence expectations

FundingCircle (through their affiliate) is a registered broker-dealer. (you can review their entry via FINRA’s BrokerCheck service). Broker-dealers are subject to specific due-diligence requirements to ensure an investment is “suitable” for their registered customers, or they can face fines and civil action. (That does not of course provide any guarantees about investment return or performance!). Investments are offered via SEC Reg D, and are only available to accredited investors.

You may be able to invest in Funding Circle using a Self-Directed IRA or 401K. To learn more about using a Self-Directed retirement account for alternative investments, visit our friends at Rocket Dollar.

Funding Circle in the news

Funding Circle Expands US Ops into Rocky Mountain State, Poised for Mile High Growth | Crowdfund Insider

Funding Circle, a leading small business loans platform, has expanded its U.S. operations with a second office in Denver, Colorado. With the move Funding Circle will look to hire around 290 new employees in the Denverarea over the next two years to support the company's growth. "Denver today serves a...

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Funding Circle Appoints Bernardo Martinez As New U.S. Managing Director | Crowdfund Insider

On Tuesday, online lender Funding Circle announced it was appointed Bernardo Martinez as its new U.S. managing director. He succeeds co-founder Sam Hodges, who is now to become Chairman of Funding Circle U.S. According to Funding Circle, Martinez joins the platform's team from PayPal, where he served as head of U.S....

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Funding Circle to Launch New Version of Autobid & Autosell Lending, Investors Will No Longer Be Able to Choose Single Loans | Crowdfund Insider

On Monday, Funding Circle announced it is set to launch a new version of its existing Autobid and Autosell lending tools. Funding Circle will be eliminating the option to manually choose which businesses an investor may lend to and which loan parts to sell will be withdrawn. This is a significant...

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